REG - Airea PLC - Pre-close Trading Update

AireaAnnouncement

23/01/2025 07:00

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RNS Number : 3357U  Airea PLC  23 January 2025

 

23 January 2025

 

AIREA plc

 

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

 

Pre-close Trading Update

 

Strong sales growth in the second half, transformational investment well
advanced

 

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 twelve months ended 31 December 2024 (the 'Period').

 

Trading update

The Group experienced strong growth in the second half of the year with sales
6.0% above the prior year, resulting in the Period being 0.6% ahead year on
year at £21.23m (2023: £21.10m). The UK and ROI delivered 4.5% sales growth
in the second half, finishing the Period 2.4% above the prior year, compared
to a deficit of 0.3% at the half year. Sales in our international markets grew
by 11.8% in the second half, finishing the Period 5.7% below the prior year, a
large improvement on the shortfall of 21.9% at the half year.

 

There was strong demand for the Group's carbon-neutral and low-carbon product
ranges in the Period. During the second half, several successful product
launches were well received by the market. Innovation and investment in
sustainability are being accelerated across the Group to meet the growing
needs of our customers.

 

The Group's short term priority remains the installation and commissioning of
the major investment in its manufacturing facility. The equipment is expected
to be installed during the second quarter and commissioned in the third
quarter. This significant investment in the profitable future growth of the
Group will increase production volumes to meet customer demand and improve
operational efficiencies.

 

After certain non-recurring costs associated with the manufacturing facility
and ongoing investment in people and other resources to support future growth,
the Group expects to report a satisfactory result for the year overall.

 

Significant progress has been made in the review and implementation of the
Group's stockholding policy, with inventory levels at the end of the Period
below the same period in the prior year. During the first half of 2025, the
Group will continue to enhance its working capital efficiency and cash
generative capabilities further.

 

Following the triennial valuation of the defined benefit pension scheme as at
1 July 2023, the Company and the trustees of the pension scheme have agreed a
reasonable and affordable recovery plan to address the scheme's current
deficit. This has been submitted with The Pensions Regulator for approval.

 

The Group continues to market its investment property for sale. The property
has a carrying value of £4.1m. Further announcements will be made as
appropriate.

 

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

"The Group is pleased to report positive momentum in the second half of the
year. This encouraging performance was delivered despite the ongoing global
economic and geopolitical challenges. Investment for future growth continued
with an increased focus on innovation and sustainability, reflected in several
new product launches. The order book at the end of the Period remained strong.

 

These are exciting times for the Group and the Board remains confident in the
Group's long-term trading and growth prospects. The investment in our
manufacturing facility is nearing completion and along with the ongoing
transformation of the business, the Group is well positioned for profitable
future growth."

 

- 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/) .

 

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