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 -

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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 Statement of Comprehensive Income

6 months ended 30 June 2025