Airea faces ‘challenging’ conditions

The company, which is based in Ossett, West Yorkshire, achieved double digit percentage growth in its international sales, which benefited from the introduction of new products.

In the UK, demand for contract flooring products reflected a “lacklustre” construction market, which had been hit by cuts in public sector spending.

Airea operates under two brands; upmarket Ryalux, used in homes, and Burmatex, which serves the office, contract and commercial sectors.

In the year ended June 30, Airea recorded revenue of £25.1m, compared with £26.3m in the same period the year before.

The company said this reflected a broadly flat underlying sales performance, combined with a selective withdrawal from certain vinyl products. The operating profit was £709,000, compared with £351,000 the year before.

In a statement to accompany the results, Airea said: “Trading conditions remain challenging in the UK and in many of the international markets that we serve.

“UK consumers remain cautious about spending, reflecting tight disposable incomes, and although there may be some reporting of tentative signs of increasing confidence, this has yet to work through into carpet sales.

“Demand from the private construction sector remains weak, with little speculative development outside of London, and public sector construction activity remains well below pre-financial crisis levels. As yet we see no reliable signs of any significant upturn in market conditions, and we continue to focus on self-help initiatives.

“We remain committed to our strategy of strengthening our product range and continuously improving customer service through the on-going development of our operational capability. We have invested in our sales structure to capture the opportunities created by our growing competitive strength and continue to explore new ways to market both at home and abroad.”