Ossett manufacturer boosts profits in tough market
27 September 2017
Ossett-based specialist flooring manufacturer Airea has increased profits by launching new products and focusing on cost savings, despite tougher trading conditions.
Airea, which deals in the manufacturing, marketing and distribution of floor coverings, has increased profit before tax by 8.3 per cent.
Revenue for the period was slightly down on the 2016 total, at £23.9m from £24.6m.
In the latter six months of the current accounting period, the business experienced further margin pressure in both the contract and residential flooring market.
Commodity prices have increased and market conditions worsened through the period as a combination of further public sector cut backs and ongoing economic and political uncertainty weighed on demand.
Recent product launches and new routes to market led to sales growth in the residential sector and exports have continued to grow steadily, benefitting from the improved exchange rate.
A period of site consolidation for Airea is now fully complete and has delivered both significant cost savings as well as improved service levels and reduced waste.
Martin Toogood, chairman of Airea, said: "We are encouraged by the reaction to our new products from both domestic and overseas customers, continue to benefit from our reduced cost base and remain committed to bringing competitively priced products with high design content to market.
"This will hold us in good stead as we anticipate ongoing uncertainty of demand in all the markets that we serve."