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: +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(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/
.
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END
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