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23 Jan 2025 07:00
23 January 2025
AIREA plc
("AIREA", the "Group" or the "Company")
Pre-close Trading Update
Strong sales growth in the second half, transformational investment well advanced
AIREA plc (AIM: AIEA), the UK design-led specialist flooring company, supplying both the UK and international markets, today announces the following trading update for the twelve months ended 31 December 2024 (the 'Period').
Trading update
The Group experienced strong growth in the second half of the year with sales 6.0% above the prior year, resulting in the Period being 0.6% ahead year on year at £21.23m (2023: £21.10m). The UK and ROI delivered 4.5% sales growth in the second half, finishing the Period 2.4% above the prior year, compared to a deficit of 0.3% at the half year. Sales in our international markets grew by 11.8% in the second half, finishing the Period 5.7% below the prior year, a large improvement on the shortfall of 21.9% at the half year.
There was strong demand for the Group's carbon-neutral and low-carbon product ranges in the Period. During the second half, several successful product launches were well received by the market. Innovation and investment in sustainability are being accelerated across the Group to meet the growing needs of our customers.
The Group's short term priority remains the installation and commissioning of the major investment in its manufacturing facility. The equipment is expected to be installed during the second quarter and commissioned in the third quarter. This significant investment in the profitable future growth of the Group will increase production volumes to meet customer demand and improve operational efficiencies.
After certain non-recurring costs associated with the manufacturing facility and ongoing investment in people and other resources to support future growth, the Group expects to report a satisfactory result for the year overall.
Significant progress has been made in the review and implementation of the Group's stockholding policy, with inventory levels at the end of the Period below the same period in the prior year. During the first half of 2025, the Group will continue to enhance its working capital efficiency and cash generative capabilities further.
Following the triennial valuation of the defined benefit pension scheme as at 1 July 2023, the Company and the trustees of the pension scheme have agreed a reasonable and affordable recovery plan to address the scheme's current deficit. This has been submitted with The Pensions Regulator for approval.
The Group continues to market its investment property for sale. The property has a carrying value of £4.1m. Further announcements will be made as appropriate.
Martin Toogood, Independent Non-Executive Chairman of AIREA plc, commented:
"The Group is pleased to report positive momentum in the second half of the year. This encouraging performance was delivered despite the ongoing global economic and geopolitical challenges. Investment for future growth continued with an increased focus on innovation and sustainability, reflected in several new product launches. 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."
- Ends -
For further information please contact:
AIREA plc Médéric Payne, Chief Executive Officer Conleth Campbell, Chief Financial Officer | Tel: +44 (0) 192 426 6561 |
Singer Capital Markets(Nominated Adviser and Sole Broker) Peter Steel / Sam Butcher | Tel: +44 (0) 20 7496 3000 |
Northstar Communications (Financial media and PR) Sarah Hollins | Tel: +44 (0) 113 730 3896 |
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/.
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