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
Médéric Payne, Chief Executive
Officer
Conleth Campbell, Chief Financial
Officer
|
Tel: +44 (0) 192 426 6561
|
|
Singer Capital Markets
(Nominated Adviser and Sole Broker)
Peter Steel / Sam Butcher
|
Tel: +44 (0) 20 7496 3000
|
|
Northstar Communications
(Financial media and PR)
Sarah Hollins
|
Tel: +44 (0) 113 730 3896
|
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/.
