REG - Airea PLC - Pre-close Trading Update and Notice of Results

AireaAnnouncement

06/08/2024 07:00

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RNS Number : 2509Z  Airea PLC  06 August 2024

 

6 August 2024

 

AIREA plc

 

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

 

Pre-close Trading Update and Notice of Results

 

Solid trading in challenging market conditions and positive outlook

 

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 six months ended 30 June 2024 (the 'Period').

 

Trading update

Following a strong start to the year, the Group experienced an unforeseen
slowdown in the second quarter. Sales for the Period were 5.6% down year on
year, though slightly ahead of the overall market trend.

 

UK and ROI sales ended the Period 0.3% down year on year. Sales in our
international markets were impacted by ongoing economic and geopolitical
concerns and ended the Period 21.9% behind the prior year.

 

There has been an encouraging start to the third quarter, with positive
trading in July and finishing with a strong order book, especially for our
low-carbon and carbon-neutral products. The Group's commitment to innovation
remains steadfast, with several new product launches scheduled for the second
half of the year.

 

The Group continues to advance its longer-term strategy. The major investment
in the Group's manufacturing facility in Ossett, West Yorkshire, announced in
January, remains on track to be completed in early 2025, marking a significant
step in the Group's ongoing transformation.

 

The second quarter sales dip has led to higher than normal inventory levels at
the Period end. The Board is taking appropriate action to address this in the
second half of the year and will also review the Group's current stockholding
policy with the aim of introducing a more efficient and cash generative
strategy.

 

Outlook

The Board anticipates a continued improvement in trading during the second
half of the year. However, in view of the difficult conditions in the second
quarter, coupled with the continued programme of investment in the Group's
transformation, the Board has moderated its full year sales growth and profit
expectations.

 

The Board remains confident in the Group's long-term trading and growth
prospects.

 

Notice of interim results

The Group's interim results for the Period will be announced on 26 September
2024.

 

- 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

This announcement contains inside information for the purposes of the retained
UK version of the EU Market Abuse Regulation (EU) 596/2014 ("UK MAR").

 

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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