A UK-based specialist flooring company has announced a decline in half-year sales due to a slowdown in trade. In the six months ended 30 June 2024 the group revenue decreased by 5.6% to £9.3m (2023: £9.8m) and the operating profit decreased to £0.2m (2023: £0.8m). These figures were heavily impacted by sales slowdown in second quarter, non-recurring costs associated with new investment, and ongoing strategic investment for future growth.
Photo: Dreamstime.
At the same time, the·EBITDA decreased to £0.6m (2023: £1.1m) and cash and cash equivalents were at £2.8m (2023: £4.9m).
Operational highlights in this period included sales performance slightly ahead of the market; business transformation progressing well, in line with the company's plan; and major investment in manufacturing facility on track for completion in early 2025. The review of the Group's stockholding policy is underway and the company announced the successful launch of new carbon-neutral products. Furthermore, the Group's sustainability principles eco2matters® has been fully embedded.
Martin Toogood, Non-Executive Chairman of AIREA plc, comments on the results: 'The year started well, with strong demand for our carbon-zero and low-carbon product ranges in the first quarter. The Group then experienced an unforeseen slowdown in the second quarter, with international sales impacted by ongoing economic and geopolitical concerns. UK and ROI sales were less impacted, performing slightly ahead of the overall market trend.'
He continues: 'The Group had an encouraging start to the third quarter, with positive trading in July and August finishing with a strong order book. We anticipate continued improvement in trading during the second half with several new product launches scheduled and the Group is trading in line with the Board's recently revised expectations for the full year. The Board remains confident in the Group's long-term prospects as we focus on successfully delivering the investment in our manufacturing facility in early 2025 and the ongoing transformation of the business, positioning it for profitable future growth.'
More information:
AIREA plc
www.aireaplc.com