AIREA PLC

Earnings Release • Sep 30, 2025

National Storage Mechanism | Additional information

RNS Number : 3026B

Airea PLC

30 September 2025

30 September 2025

AIREA plc

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

Interim results for the six months ended 30 June 2025

Strong sales growth supported by operational progress

AIREA plc (AIM: AIEA), the UK design-led specialist flooring company, supplying both the UK and international markets , today announces its interim results for the six months ended 30 June 2025 (the 'Period').

Financial summary

·    Group revenue increased by 5.8% to £9.82m (2024: £9.28m)

·    Underlying operating profit increased by 30.5% to £0.629m (2024: £0.482m)

·    Operating profit increased by 31.6% to £0.283m (2024: £0.215m)

·    EBITDA increased to £0.667m (2024: £0.622m)

·    Cash generated from operations £1.759m (2024: (£0.928m))

Operational highlights

·    Enhancement of major investment in manufacturing facility

·    Strong sales performance in the UK and ROI, an increase of 7.3%

·    Successful launch of two further carbon-neutral products

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

"It has been an encouraging first half of the year. Group sales for the Period are 5.8% ahead of the prior year, UK and ROI sales up 7.3% and international sales recovering to be 0.3% above last year.

"The Group has started the third quarter with positive trading. The Group's order book remains healthy, and its pipeline continues to strengthen, with several innovative product launches planned for the second half.

"The Board is pleased to report that the major transformational investment in the Group's manufacturing facility is progressing well. The Board took the decision to further enhance the new facility's capabilities which has resulted in a slight delay in its commissioning. This additional investment, at a cost of £0.8m, will ensure the highest quality standard enhanced from the initial specification. The overall investment includes the latest cutting-edge Artificial Intelligence imagery and inspection technology and positions the facility amongst the best in the world. The facility is now expected to be fully operational by the end of the year. There is no operational impact on the performance of the Group as all customer orders continue to be fulfilled. Decommissioning of the existing facility will commence in early 2026.

"The Board remains confident in the Group's long-term prospects for profitable future growth and delivering long-term value for our shareholders."

- 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/ .

Chief Executive Officer's Statement

Introduction

I am pleased to report the Group's interim results for the six months ended 30 June 2025. The UK and ROI delivered another strong performance while sales in our international markets were again somewhat impacted by the ongoing economic and geopolitical concerns. However, our recently opened sales office in Dubai is generating encouraging interest and re-establishing the Group's Burmatex® brand locally.

The major transformational investment in the Group's new manufacturing facility is progressing well. To maximise its long-term capabilities, the Board has approved an additional £0.8m investment. While this will result in a short delay to commissioning, it will ensure the facility operates to the highest quality standards enhanced from the initial specification. Originally scheduled to be fully operational by the end of the third quarter, the facility is now expected to be completed by the end of the year. This additional investment will optimise the facility's potential, enhance shareholder returns and further future proof the business. There will be no impact on customer service as all orders continue to be fulfilled. Decommissioning of the existing facility will begin in early 2026.

Results

Revenue   for   the   Period was 5.8% ahead year on year at £9.8m (2024: £9.3m). The UK and ROI delivered a strong performance, with sales at the end of the Period 7.3% ahead of the prior year. Following a slower start to the year, sales in the Group's international markets recovered well in the second quarter, ending the Period 0.3% above the prior year.

Underlying operating profit before property valuation gain increased to £0.6m (2024: £0.5m). After non-recurring costs, operating profit increased to £0.3m (2024: £0.2m). The non-recurring costs of £0.3m included;

·    investment in the new tiling line, which resulted in the temporary use of third-party storage at a cost of £0.05m

·    professional costs of £0.05m associated with investment in intellectual property

·    the ongoing investment in the new sales showroom in Dubai at a cost of £0.1m

·    further investment in the supply chain and quality departments

All of the above costs are expected to cease at the end of the current financial year as the business transformation concludes.

After charging net finance costs of £0.3m (2024: £0.3m) and tax of £0.2m (2024: £0.1m), the Group reported a loss of £0.2m (2024: loss of £0.2m) with basic earnings per share at (0.54p) (2024: (0.56p)).

Operating cash flows before movements in working capital were £0.8m (2024: £0.7m). Working capital movements decreased in the period to £1.0m (2024: £1.6m increase) predominantly due to a reduction in trade and other receivables, which at 31 December 2024, included £1.0m in relation to deposits paid to suppliers of key components for the new manufacturing facility . Following the usual busy summer trading period, the second half of the year will see a reduction in inventory levels. Capital expenditure increased to £2.5m (2024: £1.3m) as the major investment in the Group's manufacturing facility continued.

Net cash (cash less loans and borrowings) at the end of the Period was neutral (2024: £1.3m). In November 2024, the Group secured short-term funding in the form of a supply chain finance facility to the value of £3.2m. As at 30 June 2025, the Group had utilised £1.1m of this facility with interest payable at 2.1% above the Bank of England base rate. The Group has access to further liquidity of £1.0m via its unutilised banking facility (2024: £1.0m).

The Group is currently in advanced negotiations to divest its investment property which has a carrying value of £4.1m. The Board will provide a further update in due course.

The deficit on the defined benefit pension scheme increased by £0.5m to £4.5m (2024: £3.5m deficit). The recovery plan agreed with the scheme's Trustees to address the deficit has been formally approved by The Pensions Regulator. The plan included contributions of £0.3m from the Group that were paid in both July 2024 and July 2025, followed by monthly contributions of £62,500 from August 2025. The trustees are continuing the review of the scheme's investment strategy to further mitigate its long-term risk profile as much as possible.

Current Trading and Outlook

The Group has made an encouraging start to the third quarter, with positive trading in both July and August supported by a strong order book. The Group remains committed to expanding its presence in certain overseas markets, including Dubai in the Middle East, where its Burmatex® brand continues to generate interest.

The Group's short-term priority is the successful commissioning of its new state-of-the-art investment, which is pivotal to the transformation of the business. The Group will also maintain its focus on cash preservation and will therefore not be proposing an interim dividend at this time (2024: £nil).

These are exciting times for the Group, and the Board remains confident in its long-term trading and growth prospects.

Médéric Payne

Chief Executive Officer

30 September 2025

Consolidated Income Statement
6 months ended 30 June 2025
	Unaudited 6 months ended   30 June 2025		Unaudited 6 months ended 30 June 2024 Restated	Audited 12 months ended 31 December 2024
	£'000		£'000	£'000
Revenue	9,817		9,276	21,234
Operating costs	(9,366)		(8,972)	(20,025)
Other operating income	178		178	355
Underlying operating profit before valuation gain	629		482	1,564
Non-recurring items	(346)		(267)	(911)
Operating profit before valuation gain	283		215	653
Unrealised valuation gain	-		-	40
Operating profit	283		215	693
Finance income	-		42	69
Finance costs	(327)		(325)	(699)
(Loss)/Profit before taxation	(44)		(68)	63
Taxation	(163)		(147)	(345)
Loss attributable to shareholders of the Group	(207)		(215)	(282)
Earnings per share (basic and diluted) for the Group	(0.54p)		(0.56p)	(0.73p)

Consolidated Statement of Comprehensive Income

6 months ended 30 June 2025

	Unaudited	Unaudited	Audited
6 months	6 months	12 months
ended	ended	ended
30 June	30 June	31 December
2025	2024	2024
£'000	£'000	£'000
Loss attributable to shareholders of the Group	(207)	(215)	(282)
Items that will not be reclassified to profit or loss Remeasurement of the net defined liability	(250)	1,709	1,215
Related deferred taxation	63	(427)	(378)
	(187)	1,282	837
Items that will be reclassified subsequently to profit or loss when specific conditions are met Revaluation of property	-	-	108
Related deferred taxation	-	-	(27)
	-	-	81
Total other comprehensive (loss) / income	(187)	1,282	918
Total comprehensive (loss) / income attributable to shareholders of the Group	(394)	1,067	636

Consolidated Balance Sheet
as at 30 June 2025
	Unaudited 30 June 2025		Unaudited 30 June 2024	Audited 31 December 2024
	£'000		£'000	£'000
Non-current assets
Property, plant and equipment	10,659		7,429	8,346
Intangible assets	35		61	46
Investment property	-		4,060	-
Right-of-use asset	1,663		1,053	1,557
Deferred tax asset	963		841	1,013
	13,320		13,444	10,962
Current assets
Investment property held for resale	4,100		-	4,100
Inventories	6,651		7,620	4,855
Trade and other receivables	2,906		2,565	4,335
Cash and cash equivalents	1,839		2,814	2,063
	15,496		12,999	15,353
Total assets	28,816		26,443	26,315
Current liabilities
Trade and other payables	(4,429)		(3,438)	(3,111)
Lease liabilities	(190)		(187)	(179)
Supply chain finance	(1,142)		-	-
Loans and borrowings	(413)		(742)	(404)
	(6,174)		(4,367)	(3,694)
Non-current liabilities
Deferred tax	(2,540)		(1,653)	(2,334)
Pension deficit	(4,546)		(3,509)	(4,007)
Lease liabilities	(224)		(292)	(244)
Loans and borrowings	(290)		(747)	(500)
	(7,600)		(6,201)	(7,085)
Total liabilities	(13,774)		(10,568)	(10,779)
Net assets	15,042		15,875	15,536
Equity
Called up share capital	10,339		10,339	10,339
Share premium account	504		504	504
Own Shares	(991)		(1,454)	(1,217)
Share-based payment reserve	448		225	317
Capital redemption reserve	3,617		3,617	3,617
Revaluation reserve	3,448		3,376	3,448
Retained earnings	(2,323)		(732)	(1,472)
Total equity	15,042		15,875	15,536

Consolidated Cash Flow Statement
6 months ended 30 June 2025
	Unaudited 6 months ended 30 June 2025		Unaudited 6 months ended 30 June 2024	Audited 12 months ended 31 December 2024
	£'000		£'000	£'000
Cash flow from operating activities
Loss for the period	(207)		(215)	(282)
Depreciation	229		221	345
Depreciation of right-of-use assets	143		168	44
Amortisation	12		18	33
Share-based payment expense	131		75	167
Net finance costs	327		283	630
Tax charge	163		147	345
Unrealised valuation gain	-		-	(40)
Profit on disposal of tangible fixed asset	-		-	(6)
Operating cash flows before movements in working capital	798		697	1,236
(Increase)/decrease in inventory	(1,796)		(1,867)	898
Decrease/(increase) in trade and other receivables	1,429		591	(1,179)
(Decrease)/increase in trade and other payables	1,328		(349)	(683)
Cash generated from operations	1,759		(928)	272
Contributions to defined benefit pension scheme	-		-	(300)
Net cash generated from operating activities	1,759		(928)	(28)
Cash flows from investing activities
Payments to acquire intangible fixed assets	-		(14)	(14)
Payments to acquire tangible fixed assets	(2,542)		(1,279)	(2,204)
Receipt from sale of tangible fixed assets	-		-	6
Interest received	-		42	69
Net cash used in investing activities	(2,542)		(1,251)	(2,143)
Cash flows from financing activities
Interest paid on lease liabilities	(14)		(14)	(28)
Interest paid on borrowings	(21)		(65)	(121)
Interest paid on supply chain finance	(2)		-	-
Proceeds from asset financing	-		-	661
Proceeds from supply chain financing	1,469		-	-
Principal paid on lease liabilities	(115)		(105)	(209)
Equity dividends paid	(231)		(212)	(212)
Repayment of supply chain finance	(327)		-	-
Repayment of loans	(200)		(369)	(1,615)
Net cash used in financing activities	559		(765)	(1,524)
Net decrease in cash and cash equivalents	(224)		(2,944)	(3,695)
Cash and cash equivalents at start of the period	2,063		5,758	5,758
Cash and cash equivalents at end of the period	1,839		2,814	2,063

Consolidated Statement of Changes in Equity

6 months ended 30 June 2025

Share capital	Share premium account	Own Shares	Share-based payment reserve	Capital redemption reserve	Revaluation Reserve	Retained earnings	Total equity
£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 1 January 2024              10,339	504	(1,636)	150	3,617	3,376	(1,405)	14,945
Comprehensive income
for the year
Loss for the year                           -	-	-	-	-	-	(282)	(282)
Remeasurement of the net
defined benefit liability                 -	-	-	-	-	-	837	837
Revaluation of property                -	-	-	-	-	108	(27)	81
Total comprehensive income for the year                      -	-	-	-	-	108	528	636

Contributions by and distributions to owners

Dividend paid	-                  -                 -			-                  -                 -                      (212)				(212)
Share-based payment	-                  -                 -			167                -                 -                    -				167
Own share transfer Revaluation reverse transfer	-                  -             419 -                  -                 -			-                  -                 -               (419) -                  -               (36)                36				-        -
Total contributions by and distributions to owners	-	-	419	167	-	(36)	(595)	(45)
At 31 December 2024
and 1 January 2025       10,339		504	(1,217)	317	3,617	3,448	(1,472)	15,536
Comprehensive income for the period Loss for the period                        - Remeasurement of the net defined benefit liability              -		- -	- -	- -	- -	- -	(207) (187)		(207) (187)
Total comprehensive income for the period                  -		-	-	-	-	-	(394)	(394)
Contributions by and distributions to owners
Dividend paid                                -		-	-	-	-	-	(231)	(231)
Share-based payment                   -		-	-	131	-	-	-	131
Own shares t ransfer                    -		-	226	-	-	-	(226)	-
Total contributions by and distributions to owners                                            -		-	226	131	-	-	(457)	(100)
At 30 June 2025                  10,339		504	(991)	448	3,617	3,448	(2,323)	15,042

Notes to the Financial Statements

1. BASIS OF PREPARATION AND ACCOUNTING POLICIES

The financial information for the six months ended 30 June 2025 and the six months ended 30 June 2024 have not been audited and do not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006.

The financial information relating to the year ended 31 December 2024 does not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006. This information is based on the Group's statutory accounts for that period. The statutory accounts were prepared in accordance with UK adopted International Accounting Standards and received an unqualified audit report and did not contain statements under Section 498(2) or (3) of the Companies Act 2006. These financial statements have been filed with the Registrar of Companies.

These interim financial statements have been prepared using the recognition and measurement principles of UK adopted International Accounting Standards. The accounting policies used are the same as those used in preparing the financial statements for the period ended 31 December 2024. These policies are set out in the annual report and accounts for the period ended 31 December 2024 which is available on the Company's website at www.aireaplc.co.uk.

Further copies of this report are available from the Company Secretary at the registered office at Victoria Mills, The Green, Ossett, Wakefield, West Yorkshire WF5 0AN and are also available, along with this announcement, on the Company's website at www.aireaplc.co.uk.

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