Flooring company invests in manufacturing facility

Flooring company AIREA plc has reported a growth in sales as well as a £5m investment in its manufacturing facility. 

According to its latest trading update for the 12 months ended 31 December 2023, AIREA said that 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 has also announced a £5m 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 eco2matters® 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 ®. The Group has embarked on refreshing further ranges as low carbon or carbon neutral, including osaka® and goto®.

“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.”

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