5th Mar 2020 13:24
(Alliance News) - Flooring company Airea PLC on Thursday said its profit for 2019 declined on higher costs and a dip in revenue.
For the year, Airea posted a pretax profit of GBP2.0 million, down from GBP2.6 million the year before, as operating costs increased by 4.8% to GBP17.3 million from GBP16.5 million.
Included in the costs was Airea's planned product line revamp during the first half, which led to an increase in stock and investment in further inventory, as protection against any potential supply chain disruption caused by Brexit.
This was on revenue that dipped by 0.5% to GBP19.2 million from GBP19.3 million, although Airea said it considers the 2019 figure as ahead of the market, which was made volatile by political and economic uncertainty in the UK.
Looking ahead, Airea said it has continued with its investment into its commercial flooring business, which has provided significant opportunities for profitable growth. The group has more flexibility in its operations, and will continue its investment in new products throughout 2020.
Shares in Airea were up 8.4% at 41.75 pence on Thursday in London.
By Dayo Laniyan; [email protected]
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