Design-led flooring company Airea plc has reported a decline in revenue with the strength of the sterling against the Euro having an ‘adverse’ impact on sales.
Airea, which houses the burmatex and Ryalux brands, said that sales for the year ended 30 June 2016 were down by 3.5% to £24.6m from £25.5m.
Despite the lull in turnover, operating profit swelled 86% to over £2m following an improvement in UK contract sales and operating margins. The exceptional charge of £1.3m relates to the costs associated with the consolidation of manufacturing operations.
During the period, Airea said that underlying EBITDA, before exceptional items, was up 48% to £2.8m.
Stated within the report, the company revealed that it looks to ‘restore’ growth in its export business, and ‘improve’ its competitive position, following a more ‘enjoyable’ exchange rate.
Airea confirmed that its site consolidation is ‘almost’ complete as it reviews its position concerning one of its remaining lease properties, which is delivering ‘cost savings’ and ‘operational improvements’ ahead of expectations.
The company also indicated that its new investment in ‘manufacturing technology’ has provided the platform for extending its product range into new markets.