Final Results for the year ended 31 December 2025

Airea PLC

26 March 2026

 

26 March 2026

AIREA plc

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

Final Results for the year ended 31 December 2025

Resilient trading in a year of transformation

AIREA plc (AIM: AIEA), the UK design-led specialist flooring company, supplying both the UK and international markets, is pleased to announce its final results for the twelve months ended 31 December 2025.

Financial highlights

·    Full year revenue increased by 1.0% to £21.45m (2024: £21.23m)

·    Operating profit before valuation gain increased to £0.9m (2024: £0.7m)

·    EBITDA increased to £1.7m (2024: £1.1m)

·    Cash generated from operations of £2.2m (2024: £0.3m)

·    Cash and cash equivalents at £2.0m (2024: £2.1m)

·    Reduction in pension deficit to £3.0m (2024: £4.0m)

·    Final dividend increased by 66.7% to 1.00p per ordinary share (2024: 0.60p)

Operational highlights

·    Strategic investment in the Group's manufacturing facility in final stages of commissioning

·    Business transformation nearing completion

·    Continued focus on innovation and sustainability, successful launch of two carbon-neutral products in rocklines® and surface trace® and one low-carbon product in threads®

·    Refresh of low-carbon product in armour and carbon-neutral product in eco-cordiale®

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

"I am pleased to report on the Group's final results for the year ended 31 December 2025. The Group delivered a solid performance in the year despite the ongoing global economic and geopolitical challenges. While trading was strong in the first half, momentum slowed in the second half as confidence weakened amid uncertainty relating to the UK government's November budget. Sales for the year were 1.0% ahead of the prior year. The UK and ROI delivered sales growth of 2.3% in the year, with sales in the Group's international markets 4.0% below the prior year.

"Operating profit increased 32.0% to £0.9m due to an improving product mix and good cost control. Cash management was strong in the year and, following the divestment of the Group's investment property, all bank debt was settled, thereby strengthening the Group's cash position considerably.

"Investment continued in the year in enhancing the Group's manufacturing capabilities with the new facility expected to be fully operational in the coming months.

"It has been an encouraging start to 2026 and, whilst acknowledging the current macro volatility, the Board remains confident in the Group's prospects for the year ahead.

"The Group is now also nearing completion of the Board's plans to provide the platform to transform the business. Once completed, this will leave us well-positioned to deliver the Group's long-term growth strategy."

- Ends -

For further information please contact:

AIREA plc Médéric Payne, Chief Executive Officer Conleth Campbell, Chief Financial Officer	Tel: [phone]
Singer Capital Markets (Nominated Adviser and Sole Broker) Peter Steel / Anastassiya Eley	Tel: [phone]
Northstar Communications (Financial media and PR) Sarah Hollins	Tel: [phone]

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/.

Chairman's Statement

Overview

Following a strong performance in the first half of the year, trading softened in the second half, reflecting persistently challenging market conditions. Group sales for the year were 1.0% ahead of the prior year at £21.45m (2024: £21.23m) compared to 5.8% at the half year.

We maintained our focus on innovation and sustainability in the year with the launch of two carbon-neutral products and one low-carbon product. We also continued to refresh products within our existing portfolio, including the relaunch of one previously low-carbon product as carbon-neutral.

Results

Following a positive start to the year, the Group experienced softer demand in the second half resulting in full year sales 1.0% ahead of the prior year. The UK and ROI delivered sales growth of 2.3% in the year, with the second half performance impacted by uncertainty relating to the UK government's November budget. Sales in the Group's international markets were 4.0% below the prior year, reflecting the continued impact of global geopolitical instability.

Operating profit increased to £0.9m (2024: £0.7m) despite the continued impact of certain non-recurring costs associated with the new manufacturing facility and investment in additional resources to support future profitable growth. Cash and cash equivalents were £2.0m (2024: £2.1m).

The Group continued with its investment in the new manufacturing facility which is expected to be fully operational in the coming months. This facility has been part of an investment plan that will form a platform on which to build a more sustainable growth-focused business.

Dividends

The Group continued to prioritise cash management to assist with the funding of its strategic investment. At the same time, we remain committed to rewarding our loyal shareholder base and therefore propose a final dividend of £0.39m or 1.00p per share for the year (2024: £0.23m or 0.60p per share). As no interim dividend was paid, this represents the total dividend for the year. This is the fifth consecutive year of dividend growth and is aligned with the Group's progressive dividend policy. The final dividend will be paid on 20 May 2026 to shareholders on the register on 24 April 2026. This proposal is subject to shareholder approval at the Group's Annual General Meeting to be held on 6 May 2026.

Sustainability

Sustainability remains central to how we manage our business and is fundamental to delivering future commercial success for the Group. Our sustainability principles, eco₂matters®, underpin the development of more sustainable products to meet the evolving needs of our customers. Our carbon-neutral surface trace® carpet tiles are made from Universal Fibers® Thrive ® matter yarn, the world's first carbon-negative recycled yarn. The Group's product portfolio is supported by product-specific Environmental Product Declarations (EPDs) that are verified by an independent third party. This enables our customers to quantify the positive impact our products have on the carbon footprint of their projects.

We are committed to achieving a net zero business and, to help deliver a more sustainable future, the Group is in the process of transitioning its car fleet to electric and plug-in hybrid vehicles.

Our Board

The Board maintains the appropriate balance of skills and experience to lead the Group through the next phase of its strategic development. We remain focused on delivering sustainable long-term value for shareholders.

Our People

Our success relies on the knowledge, creativity and entrepreneurial spirit of our people. The Group's ability to innovate relies on a culture of openness and trust that fosters collaboration. We continue to recognise the hard work and dedication of our people and thank them sincerely for their contribution during the ongoing transformation of the business.

We have continued to invest in training and development, which is aligned with our commitment to embedding our values throughout the Group. During the year, we introduced an "Employee of the Month" award whereby employees are nominated by their colleagues. This initiative has been embraced across the business.

As part of our continued engagement with employees, the Chief Executive Officer and Chief Financial Officer have separately hosted informal meetings to gain a better understanding of their views and opinions on the business. These have been very well attended and have provided valuable feedback, helping to develop action plans for improvements across the Group.

The long-term share incentive scheme that launched in 2022 has now reached maturity, with 55.2% of the award vesting in May 2026. The total shares held in the employee benefit trust is 2,777,600 of which 1,218,264 will be awarded. The remaining balance of 1,559,336, including 570,600 forfeited shares, will be cancelled. The Board is currently considering alternative incentive schemes for employees.

Summary and Outlook

The Board is pleased with the Group's overall performance in the year against a backdrop of global economic and geopolitical challenges. The continued expansion of our low-carbon and carbon-neutral product portfolio is exciting and provides the Group with a competitive advantage and supports the development of opportunities in new markets.

The new manufacturing facility is expected to be fully operational in the coming months and will provide a strong platform for building a more sustainable and growth-focused business.

Looking ahead, whilst global market conditions remain challenging, the Board remains confident that the Group's recent investments will deliver long-term value for our shareholders.

Martin Toogood

Chairman

25 March 2026

Chief Executive Officer's Statement

Introduction

The Group's business transformation is nearing completion with the new manufacturing facility expected to be fully operational in the coming months. We have continued to manage this strategic investment carefully, ensuring there has been no significant operational disruption to the business.

The Group delivered strong growth in the first half of the year with sales 5.8% ahead of the prior year. Trading in the third quarter also remained strong, but the final quarter saw a sharp and unexpected downturn due to the uncertainty relating to the UK government's November budget and continued global geopolitical instability.  Sales in the year were 1.0% ahead of the prior year at £21.45m (2024: £21.23m). The UK and ROI delivered sales growth of 2.3% in the year while sales in our international markets declined by 4.0%.

In January 2025, the Group announced the opening of its sales showroom in Dubai, United Arab Emirates, as its strategic hub to serve the Middle East. This local presence will enable the Group to build on its market position in the region and capitalise on the rapid expansion of the commercial flooring sector within the Gulf Cooperation Council (GCC) countries, the MEA region and India. In May 2025, the Group exhibited at the renowned Clerkenwell Design Week in London and Architect@WorkWarsaw, showcasing its innovative and sustainable product ranges to architects and design professionals.

Strong sustainability fundamentals

Sustainability remains central to the Group's strategy and is embedded across our business through our sustainability principles, eco2matters®, including product development, manufacturing and supply chain functions.

Our product portfolio is now comprised entirely of low-carbon or carbon-neutral products. In 2023, the Group became the first UK manufacturer to introduce carbon-negative yarn technologies. More recently, we introduced biogenic yarns derived from renewable organic waste, including food waste, representing the first known use of this technology within the sector.

We continue to invest in independently verified Environmental Product Declarations (EPDs), providing transparent lifecycle data that enables customers to quantify the carbon impact of their projects and respond to the growing demand for credible and measurable environmental performance across the built environment.

Through these initiatives, we continue to strengthen the environmental performance of our products while supporting the evolving sustainability requirements of our customers and the markets we serve.

In 2025, both rocklines® and surface trace® were launched, and eco-cordiale® was refreshed within the carbon-neutral range. In addition, threads® was launched with armour refreshed in the low-carbon range.

People

Engaging with our employees and listening to their views is fundamental to ensuring they feel valued, supported and heard. We remain focused on investing in and developing our people and ensuring the organisation is equipped to support our growth ambitions.

The Group's continued success is built on the hard work and dedication of all the people who work for AIREA. I would like to thank all employees for their contribution during the year, and I am confident that their commitment will continue to support the Group as it addresses the opportunities and challenges that lie ahead in 2026.

Summary and Outlook

Following a strong first half performance, the Group experienced an unexpected slowdown in the second half in both the UK and overseas markets. Despite this, we remain confident in the Group's resilience and strategic direction. The continued launch of innovative and sustainable products is creating opportunities for the Group and supporting the development of new routes to market.

The Board is mindful of the current global geopolitical tensions, including in the Middle East. There has been no disruption to our operations in Dubai, and we will continue to closely monitor the situation.

The Group made good operational progress in 2025, and we look forward with confidence and excitement to the commissioning of the new manufacturing facility.

It has been an encouraging start to 2026 and, whilst acknowledging the current macro volatility, the Board remains confident in the Group's prospects for the year ahead.

These are exciting times for the Group, and we remain well-positioned to deliver long-term sustainable growth.

Médéric Payne

Chief Executive Officer

25 March 2026

Chief Financial Officer's Review

Group Results

Revenue increased 1.0% to £21.45m (2024: £21.23m) compared to 5.8% at the half year. The UK and ROI had a particularly strong start to the year with sales up 7.3% at the half year. The UK government's November budget had a negative impact on performance in the final quarter as sales ended the year 2.3% ahead of the prior year. Following an encouraging first half, international sales were again impacted by global geopolitical uncertainty and ended the year 4.0% below the prior year.  

Operating profit increased to £0.9m (2024: £0.7m). Non-recurring costs decreased to £0.2m (2024: £0.9m) with the cost of investment in the new sales showroom in Dubai and other sales-related costs now included in operating costs.

The non-recurring costs of £0.2m incurred in the year included:

·    temporary use of third-party storage at a cost of £0.1m due to investment in the new tiling line.

·    professional costs associated with investment in intellectual property and quality costs associated with ISO 14001 and ISO 9001 accreditations of £0.1m.

Net finance costs of £0.7m (2024: £0.6m) increased on the prior year due to lower interest receivable and higher costs relating to the pension scheme. The additional pension scheme costs included administration expenses incurred as part of the investment strategy review.

The taxation credit of £0.8m (2024: £0.3m charge) arises due to an increase in capital allowances associated with the investment in the new tiling line and a deferred tax adjustment following the divestment of the investment property.

The profit attributable to shareholders of the Group for the year was £1.0m (2024: £0.3m loss). Earnings per share were 2.54p (2024: (0.73p)).

Operating cash flows before movements in working capital and other payables increased to £1.6m (2024: £1.2m). Working capital decreased by £0.6m (2024: £1.0m increase) as trade and other receivables reduced significantly. Contributions of £0.6m were made to the pension scheme in line with the recovery plan agreed with The Pensions Regulator. Capital expenditure of £4.9m (2024: £2.2m) again predominantly related to the Group's strategic investment in its new manufacturing facility with additional spend on upgrading other areas of the existing manufacturing facility. The capital investment programme will be completed in the first half of 2026.

In October 2025, the Group completed the divestment of its investment property for a net cash consideration of £4.15m. The carrying value of property was £4.1m and a profit on divestment of £0.05m was realised.

In November 2024, the Group secured short-term funding in the form of a trade finance facility to the value of £3.2m. In October 2025, the facility was repaid in full from the proceeds of the divestment of the investment property. The Group has access to further liquidity of £1.0m via our unutilised banking facility (2024: £1.0m).

The Group had £2.0m of cash on hand as of 31 December 2025 (2024: £2.1m).

The deficit on the defined benefit pension scheme reduced by £1.0m to £3.0m (2024: £4.0m). Contributions to the scheme included a payment of £0.3m in July 2025, followed by monthly payments of £62,500, totalling £0.6m in the year. The scheme's investment strategy has been reviewed to further mitigate its long-term risk profile, which has also contributed to the reduction in the deficit.

Key Performance Indicators

As part of its internal financial control procedures, the Board monitors the key financial metrics of revenue, underlying operating profit, gross margin, working capital (debtor and creditor days), inventory turns and cash.

These KPIs are reviewed in comparison to the previous year and the budget, and analysis is undertaken to establish trends and variances. For the year ended 31 December 2025, operating profit return on sales was 4.3% (2024: 3.1%), return on net operating assets was 4.4% (2024: 3.1%) and working capital to sales percentage was 25.4% (2024: 28.7%).

Conleth Campbell

Chief Financial Officer

25 March 2026

Consolidated Income Statement
for the year ended 31 December 2025
		Year ended 31 December 2025 £000	Year ended 31 December 2024 £000
Revenue		21,447	21,234
Operating costs		(20,474)	(20,025)
Other operating income		180	355
Underlying operating profit before valuation gain		1,153	1,564
Non-recurring items		(237)	(911)
Operating profit before valuation gain		916	653
Unrealised valuation gain		-	40
Operating profit		916	693
Finance income		1	69
Finance costs		(706)	(699)
Profit before taxation		211	63
Taxation		771	(345)
Profit / (Loss) attributable to shareholders of the Group		982	(282)
Basic and diluted earnings per share for the Group		2.54p	(0.73p)

Consolidated Statement of Comprehensive Income for the year ended 31 December 2025
	2025 £000	2025 £000	2024 £000	2024 £000
Profit / (Loss) attributable to shareholders of the Group		982		(282)
Items that will not be classified to profit or loss
Remeasurement of the net defined benefit liability	942		1,215
Related deferred taxation	(389)		(378)
Revaluation of property	86		108
Related deferred taxation	(21)		(27)
Total other comprehensive income		618		918
Total comprehensive income attributable to shareholders of the Group		1,600		636

Consolidated Balance Sheet
as at 31 December 2025
		2025 £000	2025           £000	2024             £000	2024        £000
Non-current assets
Property, plant and equipment			12,733		8,346
Intangible assets			97		46
Deferred tax asset			1,593		1,557
Right-of-use asset			826		1,013
			15,249		10,962
Current assets
Investment property held for sale		-		4,100
Inventories		5,465		4,855
Trade and other receivables		2,722		4,335
Cash and cash equivalents		2,012		2,063
			10,199		15,353
Total assets			25,448		26,315
Current liabilities
Trade and other payables		(2,733)		(3,111)
Lease liabilities		(157)		(179)
Loans and borrowings		(323)		(404)
			(3,213)		(3,694)
Non-current liabilities
Deferred tax		(2,010)		(2,334)
Pension deficit		(3,027)		(4,007)
Lease liabilities		(159)		(244)
Loans and borrowings		(175)		(500)
			(5,371)		(7,085)
Total liabilities			(8,584)		(10,779)
Net assets			16,864		15,536
Equity
Called-up share capital			10,339		10,339
Share premium account			504		504
Own shares			(932)		(1,217)
Share-based payment reserve			276		317
Capital redemption reserve			3,617		3,617
Revaluation reserve			1,860		3,448
Retained earnings			1,200		(1,472)
Total equity			16,864		15,536

Consolidated Statement of Cash Flows
For the year ended 31 December 2025
		Year ended 31 December 2025 £000	Year ended 31 December 2024 £000
Cash flows from operating activities
Profit / (Loss) for the year		982	(282)
Depreciation		484	345
Depreciation of right-of-use assets		279	44
Amortisation		28	33
Share-based payment (credit) / expense		(41)	167
Net finance costs		705	630
Tax (credit) / charge		(771)	345
Unrealised valuation gain		-	(40)
Profit on disposal of tangible fixed asset		-	(6)
Profit on disposal of investment property		(50)	-
Operating cash flows before movements in working capital		1,616	1,236
(Increase) / Decrease in inventories		(610)	898
Decrease / (Increase) in trade and other receivables		1,613	(1,179)
Decrease in trade and other payables		(377)	(683)
Cash generated from operations		2,242	272
Contributions to defined benefit pension scheme		(613)	(300)
Net cash generated / (used) from operating activities		1,629	(28)
Cash flows from investing activities
Payments to acquire intangible fixed assets		(79)	(14)
Payments to acquire tangible fixed assets		(4,785)	(2,204)
Receipt from the sale of tangible fixed assets		-	6
Net proceeds from the sale of investment property		4,150	-
Interest received		1	69
Net cash used in investing activities		(713)	(2,143)
Cash flows from financing activities
Interest paid on lease liabilities		(38)	(28)
Interest paid on borrowings		(93)	(121)
Proceeds from asset financing		-	661
Principal paid on lease liabilities		(199)	(209)
Equity dividend paid		(231)	(212)
Repayment of loans		(406)	(1,615)
Net cash used in financing activities		(967)	(1,524)
Net decrease in cash and cash equivalents		(51)	(3,695)
Cash and cash equivalents at start of the year		2,063	5,758
Cash and cash equivalents at end of the year		2,012	2,063

 

Consolidated Statement of Changes in Equity

as at 31 December 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
As 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	-	-	419	-	-	-	(419)	-
Revaluation reserve transfer	-	-	-	-	-	(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 year
Profit for the year	-	-	-	-	-	-	982	982
Remeasurement of the net defined benefit liability
	-	-	-	-	-	-	553	553
Revaluation of property	-	-	-	-	-	86	(21)	65
Total comprehensive income for the year	-	-	-	-	-	86	1,514	1,600
Contributions by and
distributions to owners
Dividend paid	-	-	-	-	-	-	(231)	(231)
Share-based payment	-	-	-	(41)	-	-	-	(41)
Own share transfer	-	-	285	-	-	-	(285)	-
Revaluation reserve transfer	-	-	-	-	-	(1,674)	1,674	-
Total contributions by and          distributions to owners	-	-	285	(41)	-	(1,674)	1,158	(272)
At 31 December 2025	10,339	504	(932)	276	3,617	1,860	1,200	16,864

In accordance with Rule 20 of the AIM Rules, AIREA confirms that the annual report and accounts for the year ended 31 December 2025 and notice of Annual General Meeting ("AGM") and related proxy form will be available to view on the Company's website at www.aireaplc.co.uk on 26 March 2026 and will be posted to shareholders by 1 April 2026. The AGM will be held on 6 May 2026, at 2.00 p.m. at Victoria Mills, The Green, Ossett, West Yorkshire, WF5 0AN. Further details are set out in the notice of the AGM available within the financial statements which can be viewed on the Group's website.

 

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