Airea's markets remain depressed

23rd Mar 2011 13:16

Specialist flooring company Airea continues to face a volatile trading environment and many of its markets remain depressed.In the six months to 31 December 2010 the company saw sales slide to £15.1m from £16.7m in the second half of 2009. Profit before tax went through the floor, tumbling to £0.19m from £0.52m the year before."We have yet to see how changes in government expenditure will impact demand for floor-coverings in the public sector markets that we serve. Increasing raw material prices resulting from commodity price inflation only add to the challenges we face but so far we have been able to pass on appropriate price increases to the market," the company advised.The current year will see the company exit two large leased properties in September which will alleviate the cash effect of lease payments. At the moment, however, the company has no cash to spare for dividend payments as it needs to conserve money to retain financial flexibility.