Second half recovery at flooring business as it invests to ramp up production
Specialist flooring company, AIREA, has reported strong second half sales growth of six per cent, recovering from a 5.6 per cent first half shortfall, in its final results for the year ended 31 December 2024.
The Ossett-based business recorded a full year revenue rise of 0.6 per cent to £21.2m (2023: £21.1m) and underlying operating profit of £1.6m, excluding non-recurring costs.
Operating profit before valuation gain decreased to £0.7m (2023: £1.8m), impacted by non-recurring costs of £0.9m.
Médéric Payne, chief executive officer, said: “AIREA had another year of progress in 2024 as the strategic investment in the manufacturing facility began to take shape, with production expected to come online in the third quarter 2025.
“This investment will enable the group to increase production, capitalise on efficiencies, and improve quality and enhance margins, while bringing new, more innovative and sustainable products to the market.
“Following an unforeseen slowdown in the second quarter of the year due to global economic and geopolitical challenges, the second half recovered strongly and delivered 6% growth year-on-year.
“Full year sales were 0.6 per cent ahead of prior year, with the UK and Republic of Ireland outperforming the overall market in sales volume according to recent market research.”
AIREA said it has made further progress in expanding its sustainable portfolio with the launch of several carbon-neutral products both in the UK and in its key target overseas markets.
The business said the opening of its new showroom in Dubai in January 2025 is another example of its investment for future growth. It explains this base will operate as a strategic hub to drive sales across the Gulf, Middle East, Africa and India.
Payne added 2024 had been a “rollercoaster” for the company, noting: “Last year was one of the toughest the business has had, but also one of the most exciting.
“We’ve been trying to build for the future as well as trade day-to-day. A couple of our contracts had to be frozen when elections were called and the situation in the Middle East kept changing from one quarter to the next.
“The disruption in the Red Sea did affect our exports a bit, but then that was also true for our competitors.
“We’ve invested to have stock available in the Middle East – rather than having to send everything from Yorkshire – which should give us a buffer.”
He said good progress was being made to equip the business’s factory with new machinery, with the project expected to be complete in the summer.
But he said he wanted the government to demonstrate that it understands what businesses require to succeed and grow.
“The biggest thing we need is stability, we don’t want the rules to keep changing every month and don’t want costs to continue spiralling up,” he said.
“Last summer there was a lot of optimism that the government would help stimulate growth but it has done the opposite which is sad really.
“We hope the government wakes up to the commercial opportunities which would make a big difference to British manufacturing.”
