REG - Airea PLC - AGM Statement

AireaAnnouncement

10/05/2023 12:00

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RNS Number : 9713Y  Airea PLC  10 May 2023

 

 

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 -

 

For further information please contact:

 

 AIREA plc                                                 Tel: +44 (0) 192 426 6561

 Médéric Payne, Chief Executive Officer

 Ryan Thomas, Chief Financial Officer
 Singer Capital Markets                                    Tel: +44 (0) 20 7496 3000

(Nominated Adviser and Sole Broker)

 Peter Steel / Sam Butcher
 Yellow Jersey PR                                          Tel: +44 (0) 20 3004 9512

(Financial media and PR)

 Sarah Hollins / Shivantha Thambirajah / Jazmine Clemens

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/
(https://aireaplc.com/) .

 

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