Airea increases profit

UPMARKET carpet manufacturer Airea said it increased profit in the first six months of its financial year against "difficult market conditions"

Sales fell by 27.6 per cent to 16.68m in the six months to December 31 to 16.68m but the firm said that around 4m of the decline was due to it exiting loss-making contracts and withdrawing products from its domestic range.

Operating profit was 660,000 compared to a loss of almost 9m for the same period in 2008.

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Chief executive Neil Rylance, said: "Our half year trading statement demonstrates a welcome increase in profitability, following the return to profitability in the second half of the last financial year, set against some of the most difficult market conditions for many years."

Mr Rylance said the business is looking to the future with "cautious optimism".

The comapany described the reorganisation of its manufacturing operations as "a painful experience" but added that it would lead to stronger trading in the residential sector.

It added that the commercial floor-coverings division had experienced difficult trading conditions but sales to the public sector performed well.

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Mr Rylance added: "We are pleased with the progress made by the business in winning new contracts outside our normal more traditional market sectors. In recent months we have successfully secured new contracts to the value of 10m over the next two years, which will progressively come on stream towards the end of this financial year.

"These contracts should provide a solid platform for growth despite the economic environment."

The group said it will not pay an interim dividen.