REG - Airea PLC - Final Results for the year ended 31 December 2025
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RNS Number : 1521Y Airea PLC 26 March 2026
26 March 2026
AIREA plc
("AIREA", the "Group" or the "Company")
Final Results for the year ended 31 December 2025
Resilient trading in a year of transformation
AIREA plc (AIM: AIEA), the UK design-led specialist flooring company,
supplying both the UK and international markets, is pleased to announce its
final results for the twelve months ended 31 December 2025.
Financial highlights
· Full year revenue increased by 1.0% to £21.45m (2024: £21.23m)
· Operating profit before valuation gain increased to £0.9m (2024:
£0.7m)
· EBITDA increased to £1.7m (2024: £1.1m)
· Cash generated from operations of £2.2m (2024: £0.3m)
· Cash and cash equivalents at £2.0m (2024: £2.1m)
· Reduction in pension deficit to £3.0m (2024: £4.0m)
· Final dividend increased by 66.7% to 1.00p per ordinary share (2024:
0.60p)
Operational highlights
· Strategic investment in the Group's manufacturing facility in final
stages of commissioning
· Business transformation nearing completion
· Continued focus on innovation and sustainability, successful launch
of two carbon-neutral products in rocklines® and surface trace® and one
low-carbon product in threads®
· Refresh of low-carbon product in armour and carbon-neutral product in
eco-cordiale®
Médéric Payne, Chief Executive Officer of AIREA plc, commented:
"I am pleased to report on the Group's final results for the year ended 31
December 2025. The Group delivered a solid performance in the year despite the
ongoing global economic and geopolitical challenges. While trading was strong
in the first half, momentum slowed in the second half as confidence weakened
amid uncertainty relating to the UK government's November budget. Sales for
the year were 1.0% ahead of the prior year. The UK and ROI delivered sales
growth of 2.3% in the year, with sales in the Group's international markets
4.0% below the prior year.
"Operating profit increased 32.0% to £0.9m due to an improving product mix
and good cost control. Cash management was strong in the year and, following
the divestment of the Group's investment property, all bank debt was settled,
thereby strengthening the Group's cash position considerably.
"Investment continued in the year in enhancing the Group's manufacturing
capabilities with the new facility expected to be fully operational in the
coming months.
"It has been an encouraging start to 2026 and, whilst acknowledging the
current macro volatility, the Board remains confident in the Group's prospects
for the year ahead.
"The Group is now also nearing completion of the Board's plans to provide the
platform to transform the business. Once completed, this will leave us
well-positioned to deliver the Group's long-term growth strategy."
- Ends -
For further information please contact:
AIREA plc Tel: +44 (0) 192 426 6561
Médéric Payne, Chief Executive Officer
Conleth Campbell, Chief Financial Officer
Singer Capital Markets Tel: +44 (0) 20 7496 3000
(Nominated Adviser and Sole Broker)
Peter Steel / Anastassiya Eley
Northstar Communications Tel: +44 (0) 113 730 3896
(Financial media and PR)
Sarah Hollins
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/) .
Chairman's Statement
Overview
Following a strong performance in the first half of the year, trading softened
in the second half, reflecting persistently challenging market conditions.
Group sales for the year were 1.0% ahead of the prior year at £21.45m (2024:
£21.23m) compared to 5.8% at the half year.
We maintained our focus on innovation and sustainability in the year with the
launch of two carbon-neutral products and one low-carbon product. We also
continued to refresh products within our existing portfolio, including the
relaunch of one previously low-carbon product as carbon-neutral.
Results
Following a positive start to the year, the Group experienced softer demand in
the second half resulting in full year sales 1.0% ahead of the prior year. The
UK and ROI delivered sales growth of 2.3% in the year, with the second half
performance impacted by uncertainty relating to the UK government's November
budget. Sales in the Group's international markets were 4.0% below the prior
year, reflecting the continued impact of global geopolitical instability.
Operating profit increased to £0.9m (2024: £0.7m) despite the continued
impact of certain non-recurring costs associated with the new manufacturing
facility and investment in additional resources to support future profitable
growth. Cash and cash equivalents were £2.0m (2024: £2.1m).
The Group continued with its investment in the new manufacturing facility
which is expected to be fully operational in the coming months. This facility
has been part of an investment plan that will form a platform on which to
build a more sustainable growth-focused business.
Dividends
The Group continued to prioritise cash management to assist with the funding
of its strategic investment. At the same time, we remain committed to
rewarding our loyal shareholder base and therefore propose a final dividend of
£0.39m or 1.00p per share for the year (2024: £0.23m or 0.60p per share). As
no interim dividend was paid, this represents the total dividend for the year.
This is the fifth consecutive year of dividend growth and is aligned with the
Group's progressive dividend policy. The final dividend will be paid on 20 May
2026 to shareholders on the register on 24 April 2026. This proposal is
subject to shareholder approval at the Group's Annual General Meeting to be
held on 6 May 2026.
Sustainability
Sustainability remains central to how we manage our business and is
fundamental to delivering future commercial success for the Group. Our
sustainability principles, eco(2)matters®, underpin the development of more
sustainable products to meet the evolving needs of our customers. Our
carbon-neutral surface trace® carpet tiles are made from Universal Fibers®
Thrive ® matter yarn, the world's first carbon-negative recycled yarn. The
Group's product portfolio is supported by product-specific Environmental
Product Declarations (EPDs) that are verified by an independent third party.
This enables our customers to quantify the positive impact our products have
on the carbon footprint of their projects.
We are committed to achieving a net zero business and, to help deliver a more
sustainable future, the Group is in the process of transitioning its car fleet
to electric and plug-in hybrid vehicles.
Our Board
The Board maintains the appropriate balance of skills and experience to lead
the Group through the next phase of its strategic development. We remain
focused on delivering sustainable long-term value for shareholders.
Our People
Our success relies on the knowledge, creativity and entrepreneurial spirit of
our people. The Group's ability to innovate relies on a culture of openness
and trust that fosters collaboration. We continue to recognise the hard work
and dedication of our people and thank them sincerely for their contribution
during the ongoing transformation of the business.
We have continued to invest in training and development, which is aligned with
our commitment to embedding our values throughout the Group. During the year,
we introduced an "Employee of the Month" award whereby employees are nominated
by their colleagues. This initiative has been embraced across the business.
As part of our continued engagement with employees, the Chief Executive
Officer and Chief Financial Officer have separately hosted informal meetings
to gain a better understanding of their views and opinions on the business.
These have been very well attended and have provided valuable feedback,
helping to develop action plans for improvements across the Group.
The long-term share incentive scheme that launched in 2022 has now reached
maturity, with 55.2% of the award vesting in May 2026. The total shares held
in the employee benefit trust is 2,777,600 of which 1,218,264 will be awarded.
The remaining balance of 1,559,336, including 570,600 forfeited shares, will
be cancelled. The Board is currently considering alternative incentive schemes
for employees.
Summary and Outlook
The Board is pleased with the Group's overall performance in the year against
a backdrop of global economic and geopolitical challenges. The continued
expansion of our low-carbon and carbon-neutral product portfolio is exciting
and provides the Group with a competitive advantage and supports the
development of opportunities in new markets.
The new manufacturing facility is expected to be fully operational in the
coming months and will provide a strong platform for building a more
sustainable and growth-focused business.
Looking ahead, whilst global market conditions remain challenging, the Board
remains confident that the Group's recent investments will deliver long-term
value for our shareholders.
Martin Toogood
Chairman
25 March 2026
Chief Executive Officer's Statement
Introduction
The Group's business transformation is nearing completion with the new
manufacturing facility expected to be fully operational in the coming months.
We have continued to manage this strategic investment carefully, ensuring
there has been no significant operational disruption to the business.
The Group delivered strong growth in the first half of the year with sales
5.8% ahead of the prior year. Trading in the third quarter also remained
strong, but the final quarter saw a sharp and unexpected downturn due to the
uncertainty relating to the UK government's November budget and continued
global geopolitical instability. Sales in the year were 1.0% ahead of the
prior year at £21.45m (2024: £21.23m). The UK and ROI delivered sales growth
of 2.3% in the year while sales in our international markets declined by 4.0%.
In January 2025, the Group announced the opening of its sales showroom in
Dubai, United Arab Emirates, as its strategic hub to serve the Middle East.
This local presence will enable the Group to build on its market position in
the region and capitalise on the rapid expansion of the commercial flooring
sector within the Gulf Cooperation Council (GCC) countries, the MEA region and
India. In May 2025, the Group exhibited at the renowned Clerkenwell Design
Week in London and Architect@WorkWarsaw, showcasing its innovative and
sustainable product ranges to architects and design professionals.
Strong sustainability fundamentals
Sustainability remains central to the Group's strategy and is embedded across
our business through our sustainability principles, eco2matters®, including
product development, manufacturing and supply chain functions.
Our product portfolio is now comprised entirely of low-carbon or
carbon-neutral products. In 2023, the Group became the first UK manufacturer
to introduce carbon-negative yarn technologies. More recently, we introduced
biogenic yarns derived from renewable organic waste, including food waste,
representing the first known use of this technology within the sector.
We continue to invest in independently verified Environmental Product
Declarations (EPDs), providing transparent lifecycle data that enables
customers to quantify the carbon impact of their projects and respond to the
growing demand for credible and measurable environmental performance across
the built environment.
Through these initiatives, we continue to strengthen the environmental
performance of our products while supporting the evolving sustainability
requirements of our customers and the markets we serve.
In 2025, both rocklines® and surface trace® were launched, and
eco-cordiale® was refreshed within the carbon-neutral range. In addition,
threads® was launched with armour refreshed in the low-carbon range.
People
Engaging with our employees and listening to their views is fundamental to
ensuring they feel valued, supported and heard. We remain focused on investing
in and developing our people and ensuring the organisation is equipped to
support our growth ambitions.
The Group's continued success is built on the hard work and dedication of all
the people who work for AIREA. I would like to thank all employees for their
contribution during the year, and I am confident that their commitment will
continue to support the Group as it addresses the opportunities and challenges
that lie ahead in 2026.
Summary and Outlook
Following a strong first half performance, the Group experienced an unexpected
slowdown in the second half in both the UK and overseas markets. Despite this,
we remain confident in the Group's resilience and strategic direction. The
continued launch of innovative and sustainable products is creating
opportunities for the Group and supporting the development of new routes to
market.
The Board is mindful of the current global geopolitical tensions, including in
the Middle East. There has been no disruption to our operations in Dubai, and
we will continue to closely monitor the situation.
The Group made good operational progress in 2025, and we look forward with
confidence and excitement to the commissioning of the new manufacturing
facility.
It has been an encouraging start to 2026 and, whilst acknowledging the current
macro volatility, the Board remains confident in the Group's prospects for the
year ahead.
These are exciting times for the Group, and we remain well-positioned to
deliver long-term sustainable growth.
Médéric Payne
Chief Executive Officer
25 March 2026
Chief Financial Officer's Review
Group Results
Revenue increased 1.0% to £21.45m (2024: £21.23m) compared to 5.8% at the
half year. The UK and ROI had a particularly strong start to the year with
sales up 7.3% at the half year. The UK government's November budget had a
negative impact on performance in the final quarter as sales ended the year
2.3% ahead of the prior year. Following an encouraging first half,
international sales were again impacted by global geopolitical uncertainty and
ended the year 4.0% below the prior year.
Operating profit increased to £0.9m (2024: £0.7m). Non-recurring costs
decreased to £0.2m (2024: £0.9m) with the cost of investment in the new
sales showroom in Dubai and other sales-related costs now included in
operating costs.
The non-recurring costs of £0.2m incurred in the year included:
· temporary use of third-party storage at a cost of £0.1m due to
investment in the new tiling line.
· professional costs associated with investment in intellectual
property and quality costs associated with ISO 14001 and ISO 9001
accreditations of £0.1m.
Net finance costs of £0.7m (2024: £0.6m) increased on the prior year due to
lower interest receivable and higher costs relating to the pension scheme. The
additional pension scheme costs included administration expenses incurred as
part of the investment strategy review.
The taxation credit of £0.8m (2024: £0.3m charge) arises due to an increase
in capital allowances associated with the investment in the new tiling line
and a deferred tax adjustment following the divestment of the investment
property.
The profit attributable to shareholders of the Group for the year was £1.0m
(2024: £0.3m loss). Earnings per share were 2.54p (2024: (0.73p)).
Operating cash flows before movements in working capital and other payables
increased to £1.6m (2024: £1.2m). Working capital decreased by £0.6m (2024:
£1.0m increase) as trade and other receivables reduced significantly.
Contributions of £0.6m were made to the pension scheme in line with the
recovery plan agreed with The Pensions Regulator. Capital expenditure of
£4.9m (2024: £2.2m) again predominantly related to the Group's strategic
investment in its new manufacturing facility with additional spend on
upgrading other areas of the existing manufacturing facility. The capital
investment programme will be completed in the first half of 2026.
In October 2025, the Group completed the divestment of its investment property
for a net cash consideration of £4.15m. The carrying value of property was
£4.1m and a profit on divestment of £0.05m was realised.
In November 2024, the Group secured short-term funding in the form of a trade
finance facility to the value of £3.2m. In October 2025, the facility was
repaid in full from the proceeds of the divestment of the investment property.
The Group has access to further liquidity of £1.0m via our unutilised banking
facility (2024: £1.0m).
The Group had £2.0m of cash on hand as of 31 December 2025 (2024: £2.1m).
The deficit on the defined benefit pension scheme reduced by £1.0m to £3.0m
(2024: £4.0m). Contributions to the scheme included a payment of £0.3m in
July 2025, followed by monthly payments of £62,500, totalling £0.6m in the
year. The scheme's investment strategy has been reviewed to further mitigate
its long-term risk profile, which has also contributed to the reduction in the
deficit.
Key Performance Indicators
As part of its internal financial control procedures, the Board monitors the
key financial metrics of revenue, underlying operating profit, gross margin,
working capital (debtor and creditor days), inventory turns and cash.
These KPIs are reviewed in comparison to the previous year and the budget, and
analysis is undertaken to establish trends and variances. For the year ended
31 December 2025, operating profit return on sales was 4.3% (2024: 3.1%),
return on net operating assets was 4.4% (2024: 3.1%) and working capital to
sales percentage was 25.4% (2024: 28.7%).
Conleth Campbell
Chief Financial Officer
25 March 2026
Consolidated Income Statement
for the year ended 31 December 2025
Year Year
ended 31 December ended 31 December
2025 2024
£000 £000
Revenue 21,447 21,234
Operating costs (20,474) (20,025)
Other operating income 180 355
Underlying operating profit before valuation gain 1,153 1,564
Non-recurring items (237) (911)
Operating profit before valuation gain 916 653
Unrealised valuation gain - 40
Operating profit 916 693
Finance income 1 69
Finance costs (706) (699)
Profit before taxation 211 63
Taxation 771 (345)
Profit / (Loss) attributable to shareholders of the Group 982 (282)
Basic and diluted earnings per share for the Group 2.54p (0.73p)
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2025
2025 2025 2024 2024
£000 £000 £000 £000
Profit / (Loss) attributable to shareholders of the Group 982 (282)
Items that will not be classified to profit or loss
Remeasurement of the net defined benefit liability 942 1,215
Related deferred taxation (389) (378)
Revaluation of property 86 108
Related deferred taxation (21) (27)
Total other comprehensive income 618 918
Total comprehensive income attributable to shareholders of the Group 1,600 636
Consolidated Balance Sheet
as at 31 December 2025
2025 2025 2024 2024
£000 £000 £000 £000
Non-current assets
Property, plant and equipment 12,733 8,346
Intangible assets 97 46
Deferred tax asset 1,593 1,557
Right-of-use asset 826 1,013
15,249 10,962
Current assets
Investment property held for sale - 4,100
Inventories 5,465 4,855
Trade and other receivables 2,722 4,335
Cash and cash equivalents 2,012 2,063
10,199 15,353
Total assets 25,448 26,315
Current liabilities
Trade and other payables (2,733) (3,111)
Lease liabilities (157) (179)
Loans and borrowings (323) (404)
(3,213) (3,694)
Non-current liabilities
Deferred tax (2,010) (2,334)
Pension deficit (3,027) (4,007)
Lease liabilities (159) (244)
Loans and borrowings (175) (500)
(5,371) (7,085)
Total liabilities (8,584) (10,779)
Net assets 16,864 15,536
Equity
Called-up share capital 10,339 10,339
Share premium account 504 504
Own shares (932) (1,217)
Share-based payment reserve 276 317
Capital redemption reserve 3,617 3,617
Revaluation reserve 1,860 3,448
Retained earnings 1,200 (1,472)
Total equity 16,864 15,536
Consolidated Statement of Cash Flows
For the year ended 31 December 2025
Year Year
ended 31 December ended 31 December
2025 2024
£000 £000
Cash flows from operating activities
Profit / (Loss) for the year 982 (282)
Depreciation 484 345
Depreciation of right-of-use assets 279 44
Amortisation 28 33
Share-based payment (credit) / expense (41) 167
Net finance costs 705 630
Tax (credit) / charge (771) 345
Unrealised valuation gain - (40)
Profit on disposal of tangible fixed asset - (6)
Profit on disposal of investment property (50) -
Operating cash flows before movements in working capital 1,616 1,236
(Increase) / Decrease in inventories (610) 898
Decrease / (Increase) in trade and other receivables 1,613 (1,179)
Decrease in trade and other payables (377) (683)
Cash generated from operations 2,242 272
Contributions to defined benefit pension scheme (613) (300)
Net cash generated / (used) from operating activities 1,629 (28)
Cash flows from investing activities
Payments to acquire intangible fixed assets (79) (14)
Payments to acquire tangible fixed assets (4,785) (2,204)
Receipt from the sale of tangible fixed assets - 6
Net proceeds from the sale of investment property 4,150 -
Interest received 1 69
Net cash used in investing activities (713) (2,143)
Cash flows from financing activities
Interest paid on lease liabilities (38) (28)
Interest paid on borrowings (93) (121)
Proceeds from asset financing - 661
Principal paid on lease liabilities (199) (209)
Equity dividend paid (231) (212)
Repayment of loans (406) (1,615)
Net cash used in financing activities (967) (1,524)
Net decrease in cash and cash equivalents (51) (3,695)
Cash and cash equivalents at start of the year 2,063 5,758
Cash and cash equivalents at end of the year 2,012 2,063
Consolidated Statement of Changes in Equity
as at 31 December 2025
Share- based payment reserve
Share Capital redemption
Share premium Own reserve Revaluation Retained earnings Total equity
capital account shares reserve
£000 £000 £000 £000 £000 £000 £000 £000
As 1 January 2024 10,339 504 (1,636) 150 3,617 3,376 (1,405) 14,945
Comprehensive income for
the year
Loss for the - - - - - - (282) (282)
year
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 - - 419 - - - (419) -
Revaluation reserve transfer - - - - - (36) 36 -
Total contributions by and
distributions to owners - - 419 167 - (36) (595) (45)
At 31 December 2024
And 1 January 2025 10,339 504 (1,217) 317 3,617 3,448 (1,472) 15,536
Comprehensive income for
the year
Profit for the - - - - - - 982 982
year
Remeasurement of the net defined benefit liability
- - - - - - 553 553
Revaluation of property - - - - - 86 (21) 65
Total comprehensive income
for the - - - - - 86 1,514 1,600
year
Contributions by and
distributions to owners
Dividend paid - - - - - - (231) (231)
Share-based payment - - - (41) - - - (41)
Own share transfer - - 285 - - - (285) -
Revaluation reserve transfer - - - - - (1,674) 1,674 -
Total contributions by and
distributions to owners - - 285 (41) - (1,674) 1,158 (272)
At 31 December 2025 10,339 504 (932) 276 3,617 1,860 1,200 16,864
In accordance with Rule 20 of the AIM Rules, AIREA confirms that the annual
report and accounts for the year ended 31 December 2025 and notice of Annual
General Meeting ("AGM") and related proxy form will be available to view on
the Company's website at www.aireaplc.co.uk (http://www.aireaplc.co.uk) on
26 March 2026 and will be posted to shareholders by 1 April 2026. The AGM will
be held on 6 May 2026, at 2.00 p.m. at Victoria Mills, The Green, Ossett, West
Yorkshire, WF5 0AN. Further details are set out in the notice of the AGM
available within the financial statements which can be viewed on the Group's
website.
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