AIREA Regulatory News (AIEA)

10 May 2023

AIREA plc

("AIREA", the "Group" or the "Company")

AGM Statement

AIREA plc (AIM: AIEA), the UK design-led specialist flooring company, supplying both the UK and international markets, will be holding its Annual General Meeting ("AGM") today at 2.00 p.m. at Victoria Mills, The Green, Ossett, WF5 0AN.

Martin Toogood, Non-Executive Chairman and Médéric Payne, Chief Executive Officer, will provide the following update at today's meeting:

Chairman's Statement

"It is my pleasure to welcome you to the sixty-ninth Annual General Meeting of AIREA plc, held for the first time in many years at one of the Group's sites Victoria Mills. As Non-Executive Chairman, I am joined by Médéric Payne, Chief Executive Officer and Ryan Thomas, Chief Financial Officer and Company Secretary.

"Médéric, who joined in August 2022, leads the Executive team bringing his extensive leadership, commercial, supply chain and marketing expertise coupled with his passion for people development.

"During 2022, we delivered revenue growth to £18.5 million and improved the net cash position by £900,000. The Group has maintained profit margins despite the ongoing cost challenges and continued our progressive dividend focus with a proposed 0.5 pence per share.

"The pension scheme position has deteriorated year on year from an unrecognised surplus of £5.1 million to a deficit of £1.3 million. This was caused in part by the rise in gilt yields and then a fall in gilt prices towards the end of 2022. The next triennial valuation is due on 1 July 2023 and this will be used to agree upon a revised schedule of contributions with the pension trustees. The investment strategy for the scheme is also under review to ensure that the scheme can meet its obligations as they fall due.

"I am pleased to report that the business has continued to make good progress. We continue to develop new products whilst simultaneously refreshing and revamping our existing profitable ranges. A key focus of our product offering is aimed at addressing our customers' ever-increasing demand for environmentally focused products.

Chief Executive Officer's Statement

"I am delighted to be here today at my first AIREA plc Annual General Meeting. Since taking on the position as Chief Executive Officer, I have spoken and listened to a number of people inside and outside the Company. As a result, I have already introduced a number of commercial changes.

"Building on the Group's strong foundations, but by actively listening to our customers especially and other stakeholder interests, I have understood it is imperative the business continues to be more competitive, innovative and agile, in order to have the ability to adapt to market trends, with sustainability at the core of its future values. Subsequently, a number of actions have been taken to revitalise AIREA and engage with a revised business plan to drive results.

"For example, we have all recently witnessed the impact of energy prices and labour challenges. Therefore, the Group is building a more efficient manufacturing unit, where consumption is better managed such as the current fitting of the solar panels on the factory roofs. We will seek to improve productivity through the introduction of updated processes and it is imperative that we, like others in the industry, fully address finding solutions to reduce our output waste and recycle more material back into the manufacturing process in order to close the loop.

"During the last quarter of 2022, we set out to evolve our offer for 2023. This year, we have started a major overhaul of our products, beginning with the creation of new ranges, moving on to refreshing existing ones and finally exiting older underperforming ones.

"In December 2022, we published our first Sustainability Principles with eco2matters, which are published on our website.

"In January 2023, the Group launched its first carbon neutral range with arctic in carpet tile and plank, which signified a major change to the business. We also introduced the world's first carbon negative recycled yarn from Universal Fibers to the British market, which highlighted our role as innovators to existing and potential new customers.

"We have also overhauled the Burmatex brand, evolving the brand promise and sending a signal to the market that Burmatex is fresh and very present. During this month, the Group will be exhibiting at the renowned Clerkenwell Design Week show in London for the first time since 2012, where we will launch a new range and engage with our target customers.

"The UK is still the Group's major market at approximately 80% of sales but remains highly competitive. We therefore have an enhanced focus on growing our international sales in both existing and new markets.

"In terms of people, we are reviewing our skills and future resource requirements to align with our new strategic goals. We have already launched at the end of 2022 our new values to bolster our business transformation project to empower, encourage and inspire our workforce to deliver improved products to our customers.

"We are also delighted to confirm the appointment of Tanya Ashton to the position of Non-Executive Director as announced to the London Stock Exchange today. Tanya's appointment further strengthens the governance of AIREA plc as an AIM-listed business. But more importantly, Tanya brings with her a passion for sustainability within manufacturing. Tanya's background in marketing, manufacturing and sustainability will be of huge value as we face a faster-changing business environment that is demanding daily new standards of social responsibility, eliminating waste and the drive towards a circular economy.

"We look forward to updating shareholders on the Group's progress in due course."

- Ends -

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Notes to Editors

AIREA plc is a UK design-led specialist flooring company, supplying both UK and international markets. Since 2007, the Group has been focused solely on floor coverings and enjoys a strong and growing brand position within the commercial flooring market.

The Group's core brand Burmatex® is one of the UK's leading designers and manufacturers of commercial carpet tiles and planks. Burmatex® focuses on the design and creation of sustainable innovative flooring solutions to meet the needs of architects, specifiers and contractors with a continuously developing range to suit the education, leisure, commercial, hospitality and public sectors. The brand was acquired by AIREA in 1984.

The Group was admitted to trading on AIM of the London Stock Exchange on 12 December 2007.

For further information, please visit: https://aireaplc.com/.