Airea (AIM:AIEA) said it had seen a rebound in second-half sales, which reversed a first-half drop and lifted the share price of the Burmatex carpet tiles group by 12%.
Demand was strong for its carbon-neutral and low-carbon product ranges, said the statement, with second-half sales rising by 6% and by 0.6% for the year to £21.2 million.
The UK and Ireland saw 4.5% sales growth in the second half, but international markets rebounded by 11.8%, recouping a large chunk of the 21.9% half-year decline.
During the second half, several successful product launches were well received by the market, added the statement.
An upgrade to the manufacturing facility remains the priority, Airea said, with equipment expected to be installed during the second quarter and commissioned in the third quarter.
After non-recurring costs associated with the manufacturing facility, the group added it expects to report a ‘satisfactory’ result for the year overall.
Airea said that the trustees of the pension scheme had also agreed to a recovery plan to address the scheme's current deficit, which has been submitted to The Pensions Regulator for approval.
Martin Toogood, chairman, added: "The group is pleased to report positive momentum in the second half of the year. The order book at the end of the period remained strong.
“These are exciting times for the group and the board remains confident in the group's long-term trading and growth prospects.
“The investment in our manufacturing facility is nearing completion and along with the ongoing transformation of the business, the group is well positioned for profitable future growth."
Shares rose 3p to 23p.