Airea PLC Trading update and GBP5.0m investment in facility (6640A)

TIDMAIEA

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 GBP5.0m 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(R) 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 GBP5.0m 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(R) 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 (R). The Group has embarked on refreshing further ranges as low carbon or carbon neutral, including osaka(R) and goto(R).

"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: [phone] 
  Médéric Payne, Chief Executive 
  Officer 
  Conleth Campbell, Chief Financial Officer 
 Singer Capital Markets                       Tel: [phone] 
  (Nominated Adviser and Sole Broker) 
  Peter Steel / Sam Butcher 
 Yellow Jersey PR                             Tel: [phone] 
  (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(R) is one of the UK's leading designers and manufacturers of commercial carpet tiles and planks. Burmatex(R) 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/ .

This announcement contains inside information for the purposes of Article 7 of 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

TSTBLGDBIXDDGSX

(END) Dow Jones Newswires

January 24, 2024 02:00 ET (07:00 GMT)