Interim Results

Airea

30/09/2025 07:00

RNS Number : 3026B

Airea PLC

30 September 2025

 

30 September 2025

 

AIREA plc

 

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

 

Interim results for the six months ended 30 June 2025

 

Strong sales growth supported by operational progress

 

AIREA plc (AIM: AIEA), the UK design-led specialist flooring company, supplying both the UK and international markets, today announces its interim results for the six months ended 30 June 2025 (the 'Period').

 

Financial summary

 

·    Group revenue increased by 5.8% to £9.82m (2024: £9.28m)

·    Underlying operating profit increased by 30.5% to £0.629m (2024: £0.482m)

·    Operating profit increased by 31.6% to £0.283m (2024: £0.215m)

·    EBITDA increased to £0.667m (2024: £0.622m)

·    Cash generated from operations £1.759m (2024: (£0.928m))

 

Operational highlights

 

·    Enhancement of major investment in manufacturing facility

·    Strong sales performance in the UK and ROI, an increase of 7.3%

·    Successful launch of two further carbon-neutral products

 

Martin Toogood, Non-Executive Chairman of AIREA plc, commented:

 

"It has been an encouraging first half of the year. Group sales for the Period are 5.8% ahead of the prior year, UK and ROI sales up 7.3% and international sales recovering to be 0.3% above last year.

 

"The Group has started the third quarter with positive trading. The Group's order book remains healthy, and its pipeline continues to strengthen, with several innovative product launches planned for the second half.

 

"The Board is pleased to report that the major transformational investment in the Group's manufacturing facility is progressing well. The Board took the decision to further enhance the new facility's capabilities which has resulted in a slight delay in its commissioning. This additional investment, at a cost of £0.8m, will ensure the highest quality standard enhanced from the initial specification. The overall investment includes the latest cutting-edge Artificial Intelligence imagery and inspection technology and positions the facility amongst the best in the world. The facility is now expected to be fully operational by the end of the year. There is no operational impact on the performance of the Group as all customer orders continue to be fulfilled. Decommissioning of the existing facility will commence in early 2026.

 

"The Board remains confident in the Group's long-term prospects for profitable future growth and delivering long-term value for our shareholders."

 

- 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/.

 

Chief Executive Officer's Statement

 

Introduction

I am pleased to report the Group's interim results for the six months ended 30 June 2025. The UK and ROI delivered another strong performance while sales in our international markets were again somewhat impacted by the ongoing economic and geopolitical concerns. However, our recently opened sales office in Dubai is generating encouraging interest and re-establishing the Group's Burmatex® brand locally.

 

The major transformational investment in the Group's new manufacturing facility is progressing well. To maximise its long-term capabilities, the Board has approved an additional £0.8m investment. While this will result in a short delay to commissioning, it will ensure the facility operates to the highest quality standards enhanced from the initial specification. Originally scheduled to be fully operational by the end of the third quarter, the facility is now expected to be completed by the end of the year. This additional investment will optimise the facility's potential, enhance shareholder returns and further future proof the business. There will be no impact on customer service as all orders continue to be fulfilled. Decommissioning of the existing facility will begin in early 2026.

 

Results

Revenue for the Period was 5.8% ahead year on year at £9.8m (2024: £9.3m). The UK and ROI delivered a strong performance, with sales at the end of the Period 7.3% ahead of the prior year. Following a slower start to the year, sales in the Group's international markets recovered well in the second quarter, ending the Period 0.3% above the prior year.

 

Underlying operating profit before property valuation gain increased to £0.6m (2024: £0.5m). After non-recurring costs, operating profit increased to £0.3m (2024: £0.2m). The non-recurring costs of £0.3m included;

·    investment in the new tiling line, which resulted in the temporary use of third-party storage at a cost of £0.05m

·    professional costs of £0.05m associated with investment in intellectual property

·    the ongoing investment in the new sales showroom in Dubai at a cost of £0.1m

·    further investment in the supply chain and quality departments

 

All of the above costs are expected to cease at the end of the current financial year as the business transformation concludes.

 

After charging net finance costs of £0.3m (2024: £0.3m) and tax of £0.2m (2024: £0.1m), the Group reported a loss of £0.2m (2024: loss of £0.2m) with basic earnings per share at (0.54p) (2024: (0.56p)).

 

Operating cash flows before movements in working capital were £0.8m (2024: £0.7m). Working capital movements decreased in the period to £1.0m (2024: £1.6m increase) predominantly due to a reduction in trade and other receivables, which at 31 December 2024, included £1.0m in relation to deposits paid to suppliers of key components for the new manufacturing facility. Following the usual busy summer trading period, the second half of the year will see a reduction in inventory levels. Capital expenditure increased to £2.5m (2024: £1.3m) as the major investment in the Group's manufacturing facility continued.

 

Net cash (cash less loans and borrowings) at the end of the Period was neutral (2024: £1.3m). In November 2024, the Group secured short-term funding in the form of a supply chain finance facility to the value of £3.2m. As at 30 June 2025, the Group had utilised £1.1m of this facility with interest payable at 2.1% above the Bank of England base rate. The Group has access to further liquidity of £1.0m via its unutilised banking facility (2024: £1.0m).

 

The Group is currently in advanced negotiations to divest its investment property which has a carrying value of £4.1m. The Board will provide a further update in due course.

 

The deficit on the defined benefit pension scheme increased by £0.5m to £4.5m (2024: £3.5m deficit). The recovery plan agreed with the scheme's Trustees to address the deficit has been formally approved by The Pensions Regulator. The plan included contributions of £0.3m from the Group that were paid in both July 2024 and July 2025, followed by monthly contributions of £62,500 from August 2025. The trustees are continuing the review of the scheme's investment strategy to further mitigate its long-term risk profile as much as possible.

 

Current Trading and Outlook

The Group has made an encouraging start to the third quarter, with positive trading in both July and August supported by a strong order book. The Group remains committed to expanding its presence in certain overseas markets, including Dubai in the Middle East, where its Burmatex® brand continues to generate interest.

 

The Group's short-term priority is the successful commissioning of its new state-of-the-art investment, which is pivotal to the transformation of the business. The Group will also maintain its focus on cash preservation and will therefore not be proposing an interim dividend at this time (2024: £nil).

 

These are exciting times for the Group, and the Board remains confident in its long-term trading and growth prospects.

 

Médéric Payne

Chief Executive Officer

30 September 2025

 

 

Consolidated Income Statement
6 months ended 30 June 2025
Unaudited6 months ended
30 June
2025
Unaudited6 months ended
30 June
2024
Restated
Audited12 months
ended31 December
2024
£'000
£'000
£'000
Revenue
9,817
9,276
21,234
Operating costs
(9,366)
(8,972)
(20,025)
Other operating income
178
178
355
Underlying operating profit before valuation gain
629
482
1,564
Non-recurring items
(346)
(267)
(911)
Operating profit before valuation gain
283
215
653
Unrealised valuation gain
-
-
40
Operating profit
283
215
693
Finance income
-
42
69
Finance costs
(327)
(325)
(699)
(Loss)/Profit before taxation
(44)
(68)
63
Taxation
(163)
(147)
(345)
Loss attributable to shareholders of the Group
(207)
(215)
(282)
Earnings per share (basic and diluted) for the Group
(0.54p)
(0.56p)
(0.73p)


 

 

Consolidated Statement of Comprehensive Income

6 months ended 30 June 2025

 

 

Unaudited
Unaudited
Audited
6 months
6 months
12 months
ended
ended
ended
30 June
30 June
31 December
2025
2024
2024
£'000
£'000
£'000
Loss attributable to shareholders of the Group
(207)
(215)
(282)
Items that will not be reclassified to profit or loss
Remeasurement of the net defined liability
(250)
1,709
1,215
Related deferred taxation
63
(427)
(378)
(187)
1,282
837
Items that will be reclassified subsequently to profit or loss when specific conditions are met
Revaluation of property
-
-
108
Related deferred taxation
-
-
(27)
-
-
81
Total other comprehensive (loss) / income
(187)
1,282
918
Total comprehensive (loss) / income attributable to shareholders of the Group
(394)
1,067
636

Consolidated Balance Sheet
as at 30 June 2025
Unaudited30 June
2025
Unaudited30 June
2024
Audited31 December
2024
£'000
£'000
£'000
Non-current assets
Property, plant and equipment
10,659
7,429
8,346
Intangible assets
35
61
46
Investment property
-
4,060
-
Right-of-use asset
1,663
1,053
1,557
Deferred tax asset
963
841
1,013
13,320
13,444
10,962
Current assets
Investment property held for resale
4,100
-
4,100
Inventories
6,651
7,620
4,855
Trade and other receivables
2,906
2,565
4,335
Cash and cash equivalents
1,839
2,814
2,063
15,496
12,999
15,353
Total assets
28,816
26,443
26,315
Current liabilities
Trade and other payables
(4,429)
(3,438)
(3,111)
Lease liabilities
(190)
(187)
(179)
Supply chain finance
(1,142)
-
-
Loans and borrowings
(413)
(742)
(404)
(6,174)
(4,367)
(3,694)
Non-current liabilities
Deferred tax
(2,540)
(1,653)
(2,334)
Pension deficit
(4,546)
(3,509)
(4,007)
Lease liabilities
(224)
(292)
(244)
Loans and borrowings
(290)
(747)
(500)
(7,600)
(6,201)
(7,085)
Total liabilities
(13,774)
(10,568)
(10,779)
Net assets
15,042
15,875
15,536
Equity
Called up share capital
10,339
10,339
10,339
Share premium account
504
504
504
Own Shares
(991)
(1,454)
(1,217)
Share-based payment reserve
448
225
317
Capital redemption reserve
3,617
3,617
3,617
Revaluation reserve
3,448
3,376
3,448
Retained earnings
(2,323)
(732)
(1,472)
Total equity
15,042
15,875
15,536


Consolidated Cash Flow Statement
6 months ended 30 June 2025
Unaudited6 months ended 30 June
2025
Unaudited6 months ended
30 June
2024
Audited12 months
ended31 December
2024
£'000
£'000
£'000
Cash flow from operating activities
Lossfor the period
(207)
(215)
(282)
Depreciation
229
221
345
Depreciation of right-of-use assets
143
168
44
Amortisation
12
18
33
Share-based payment expense
131
75
167
Net finance costs
327
283
630
Tax charge
163
147
345
Unrealised valuation gain
-
-
(40)
Profit on disposal of tangible fixed asset
-
-
(6)
Operating cash flows before movements in working capital
798
697
1,236
(Increase)/decrease in inventory
(1,796)
(1,867)
898
Decrease/(increase) in trade and other receivables
1,429
591
(1,179)
(Decrease)/increase in trade and other payables
1,328
(349)
(683)
Cash generated from operations
1,759
(928)
272
Contributions to defined benefit pension scheme
-
-
(300)
Net cash generated from operating activities
1,759
(928)
(28)
Cash flows from investing activities
Payments to acquire intangible fixed assets
-
(14)
(14)
Payments to acquire tangible fixed assets
(2,542)
(1,279)
(2,204)
Receipt from sale of tangible fixed assets
-
-
6
Interest received
-
42
69
Net cash used in investing activities
(2,542)
(1,251)
(2,143)
Cash flows from financing activities
Interest paid on lease liabilities
(14)
(14)
(28)
Interest paid on borrowings
(21)
(65)
(121)
Interest paid on supply chain finance
(2)
-
-
Proceeds from asset financing
-
-
661
Proceeds from supply chain financing
1,469
-
-
Principal paid on lease liabilities
(115)
(105)
(209)
Equity dividends paid
(231)
(212)
(212)
Repayment of supply chain finance
(327)
-
-
Repayment of loans
(200)
(369)
(1,615)
Net cash used in financing activities
559
(765)
(1,524)
Net decrease in cash and cash equivalents
(224)
(2,944)
(3,695)
Cash and cash equivalents at start of the period
2,063
5,758
5,758
Cash and cash equivalents at end of the period
1,839
2,814
2,063


Consolidated Statement of Changes in Equity

6 months ended 30 June 2025

 

Sharecapital
Sharepremiumaccount
OwnShares
Share-based
paymentreserve
Capitalredemption
reserve
Revaluation
Reserve
Retained earnings
Totalequity
£'000
£'000
£'000
£'000
£'000
£'000
£'000
£'000
At 1 January 202410,339
504
(1,636)
150
3,617
3,376
(1,405)
14,945
Comprehensive income
for the year
Loss for the year-
-
-
-
-
-
(282)
(282)
Remeasurement of the net
defined benefit liability -
-
-
-
-
-
837
837
Revaluation of property-
-
-
-
-
108
(27)
81
Total comprehensive
income for the year-
-
-
-
-
108
528
636

Contributions by and distributions to owners

Dividend paid
---
--- (212)
(212)
Share-based payment
---
167---
167
Own share transfer Revaluation reverse
transfer
-- 419
---
--- (419)
--(36) 36
-
-
Total contributions by and distributions to owners
-
-
419
167
-
(36)
(595)
(45)
At 31 December 2024
and 1 January 202510,339
504
(1,217)
317
3,617
3,448
(1,472)
15,536
Comprehensive income for the period
Loss for the period-
Remeasurement of the net
definedbenefit liability -
-
-
-
-
-
-
-
-
-
-
(207)
(187)
(207)
(187)
Total comprehensive
income for the period-
-
-
-
-
-
(394)
(394)
Contributions by and distributions to owners
Dividend paid-
-
-
-
-
-
(231)
(231)
Share-based payment-
-
-
131
-
-
-
131
Own shares transfer-
-
226
-
-
-
(226)
-
Total contributions by and distributions to
owners-
-
226
131
-
-
(457)
(100)
At 30 June 202510,339
504
(991)
448
3,617
3,448
(2,323)
15,042


Notes to the Financial Statements

 

1. BASIS OF PREPARATION AND ACCOUNTING POLICIES

The financial information for the six months ended 30 June 2025 and the six months ended 30 June 2024 have not been audited and do not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006.

 

The financial information relating to the year ended 31 December 2024 does not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006. This information is based on the Group's statutory accounts for that period. The statutory accounts were prepared in accordance with UK adopted International Accounting Standards and received an unqualified audit report and did not contain statements under Section 498(2) or (3) of the Companies Act 2006. These financial statements have been filed with the Registrar of Companies.

 

These interim financial statements have been prepared using the recognition and measurement principles of UK adopted International Accounting Standards. The accounting policies used are the same as those used in preparing the financial statements for the period ended 31 December 2024. These policies are set out in the annual report and accounts for the period ended 31 December 2024 which is available on the Company's website at www.aireaplc.co.uk.

 

Further copies of this report are available from the Company Secretary at the registered office at Victoria Mills, The Green, Ossett, Wakefield, West Yorkshire WF5 0AN and are also available, along with this announcement, on the Company's website at www.aireaplc.co.uk.

 

 

 

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