REG - Airea PLC - Interim Results
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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 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 / Sam Butcher
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/) .
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
Unaudited 6 months ended Unaudited 6 months ended Audited 12 months
30 June 30 June ended 31 December
2025 2024 2024
Restated
£'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 (250) 1,215
Remeasurement of the net defined liability 1,709
Related deferred taxation 63 (427) (378)
(187) 1,282 837
Items that will be reclassified subsequently to profit or loss when specific 108
conditions are met
Revaluation of property
- -
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) 636
1,067
Consolidated Balance Sheet
as at 30 June 2025
Unaudited 30 June Unaudited 30 June Audited 31 December
2025 2024 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
Unaudited 6 months ended 30 June Unaudited 6 months ended Audited 12 months
2025 30 June ended 31 December
2024 2024
£'000 £'000 £'000
Cash flow from operating activities
Loss for 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
Share premium account Share-based Capital redemption Total equity
Share capital Own Shares payment reserve reserve Revaluation Retained earnings
Reserve
£'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 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 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 - - 419 - - -
- (419)
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 period
Loss for the period -
Remeasurement of the net - - - - - (207) (207)
defined benefit liability -
- - - - - (187) (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 2025 10,339 504 (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.
(http://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. (http://www.aireaplc.co.uk/)
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