Carpet specialist feels pinch

AIREA – formerly known as Sirdar – said today it had “significantly” reduced expectations for the remainder of the financial year as the deteriorating market hits its sales.

The Wakefield-based company manufactures, markets and distributes textile products.

In a trading update it said that it was acting to streamline manufacturing operations and control costs to ensure the group was “well placed” when market conditions improved.

However despite the cost cutting measures the group said it expects to report an operating loss for both the half year to December 31 and the full year to June 30, 2009.

The board added that it was not yet able to predict when market conditions would improve, and would continue to keep the situation under review.

In the statement the group said that it does not intend to declare an interim dividend for the year ending June 30 next year.

Airea specialises in making high-end products for affluent customers including footballers and rock stars.

In September the group reported an annual pre-tax loss of £3.6m after exceptional items, compared with last year’s £651,000 profit.