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Tough time for contract flooring
Website Editor • July 31, 2020
The challenges faced by the contract flooring sector are revealed by the latest financial results from Airea Plc, owners of the Burmatex brand of carpet tiles popular in the commercial and leisure sector.
Profits of almost £1m in 2019 were overturned to a small loss of £43,000 in the interim results for the six months ended 30th June 2020.
The impact of Covid-19 was at its most significant during April and May with demand reduced by 51% against the prior year says the company but there was an improvement during June and, although still behind prior year, the reduction had improved to 9%.
In a statement to shareholders, Airea plc commented: "Demand, although improving, remains lower than previous years as the impact of Covid-19 continues and therefore it is very difficult for the group to forecast the performance in the second half. However, with strong liquidity and the continued development of new products we believe the group is positioned well to take advantage of any opportunities that arise."
The reported noted that Airea, which had sales of nearly £20m in 2019, had taken full advantage of Government support packages during the pandemic including the furlough scheme for its employees, a CBILS interest-free loan of £2.75m, Q1 VAT deferment and a capital repayment holiday on long-term loans.
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