Airea flying as overseas flooring sales soar

Commercial flooring firm Airea saw its shares rocket on Friday after it reported an increase in first-half revenues after new product launches boosted the company’s sales and orders.

For the six months ended 30 June, revenue increased by 12% to £9.1m and profit before tax from continuing operations jumped 18% to £1.3m, helped by a 30% jump in international sales due to new product releases, better market penetration and distribution network improvements.

Chairman Martin Toogood said: "We are pleased by the progress we have made in driving sales growth in the ongoing commercial flooring operation with a strengthening portfolio of products. Sales growth in our markets requires hard work and commitment over a sustained period of time, and we remain determined to build on the progress made."

The company also saw order book growth and an increase in UK sales, attributed again to the introduction of new products.

However, loss-making subsidiary Ryalux is to be closed, following an announcement in March that it would enter a formal consultation period after several unsuccessful attempts to stimulate the brand’s sales.

"Uncertainties remain, including the outcome of Brexit negotiations; however, as a UK manufacturer with a strengthening position in the UK and internationally, we are well placed to mitigate risks and take advantage of growth opportunities," said Toogood.

At 30 June, Airea had cash and cash equivalents of £2.4m, up 4% from the same point last year, and maintained an unaltered interim dividend of 1.75p per share.

Airea’s shares were up 15.60% at 63.00p at 0909 BST.