REG - Airea PLC - Trading update and £5.0m investment in facility

AireaAnnouncement

24/01/2024 07:00

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RNS Number : 6640A  Airea PLC  24 January 2024

 

 24 January 2024

AIREA plc

 

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

 

Trading update and

investment in manufacturing facility

 

AIREA plc (AIM: AIEA), the UK design-led specialist flooring company,
supplying both the UK and international markets, today announces a trading
update for the twelve months ended 31 December 2023 and a £5.0m investment in
its manufacturing facility.

 

Trading update

The strong sales growth observed in the first half of 2023 continued
throughout the full year with further wins in key export markets. In addition,
the Group has seen continued interest in low carbon products and the launch of
two carbon neutral products being well received. As a result, sales finished
the year low double-digit percentage ahead of the prior year.

 

The Group introduced a set of principles known as eco(2)matters®
sustainability principles in December 2022. This philosophy structured the
Group to become more carbon friendly and efficient in its product offering.
The Group has now established those principles across its entire operational
model.

 

Investment in manufacturing facility

The Group is also pleased to announce a £5.0m investment in its manufacturing
facility in Ossett, West Yorkshire, scheduled to commence in March 2024, with
completion of the full programme expected in early 2025. The investment will
be funded from a combination of current cash reserves, utilisation of existing
banking facilities and supported by the Group's continued cash-generative
operating activities.

 

The focus of the investment will be on the manufacturing facility and will
substantially increase capacity and include the automation of certain
processes using the latest cutting-edge Artificial Intelligence imagery and
inspection technology. The benefits of the investment will help to increase
production and improve operational efficiencies. This new facility will also
improve the Group's sustainability credentials by utilising energy more
efficiently, increasing volume throughput to meet customer demand and future
requirements.

 

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

"The Group is pleased to report positive momentum has continued both
financially and operationally in the year ended 31 December 2023.

 

"The investment in our existing manufacturing facility is pivotal in providing
additional capacity and will enable us to evolve our existing processes
providing a strong platform for growth. Delivering growth through this
investment is a fundamental part of our ongoing strategy and enabling us to
capitalise on future market opportunities."

 

Médéric Payne, Chief Executive Officer of AIREA plc, commented:

"The investment in the manufacturing facility will be transformational for the
business, providing more modern manufacturing standards for the next decade,
and beyond. It will enable the Group to operate more efficiently, act more
sustainably and increase production volumes to satisfy the expansion in
customer orders and their broader requirements.

 

"A significant step change in the business is our intention to invest for
future sales growth, incorporating the Group's eco(2)matters® sustainability
principles and the journey towards net zero.

 

"The change in commercial direction across our product offering was launched
with our first carbon neutral product, arctic ®. The Group has embarked on
refreshing further ranges as low carbon or carbon neutral, including osaka®
and goto®.

 

"This investment is key to the business in delivering growth aligned with
developing our strategy for the long-term benefit of both the Company and its
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
 Yellow Jersey PR                                         Tel: +44 (0) 20 3004 9512

(Financial media and PR)

 Sarah Hollins / Shivantha Thambirajah / Soraya Jackson

 

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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the Market Abuse Regulation (EU) 596/2014 as it forms part of UK domestic law
by virtue of the European Union (Withdrawal) Act 2018. Upon the publication of
this announcement via the Regulatory Information Service, this inside
information is now considered to be in the public domain.

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