Exports boost helps carpets company make a pile

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.”

It added that demand from the private construction sector remains weak, with little speculative development outside of London.

On top of this 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,” the company said.

It added that it remains committed to its strategy of strengthening its product range and improving customer service through the on-going development of operational capabilities.

It has invested in its sales structure and said it is exploring new ways to market both at home and abroad.

The group said it has yet to see any improvement in underlying trading activity in the retail flooring market, as consumers continue to be squeezed by austerity, a stagnant economy and weak wage growth.

It added that successful initiatives in luxury carpets and own label ranges were launched against a back drop of low retail footfall and a general trading down by consumers.