AIREA PLC, a UK design-led specialist flooring company, has released a trading update for the six months ended 30 June 2024. The company experienced a slowdown in the second quarter, with sales down 5.6% year on year, though slightly ahead of the overall market trend. UK and ROI sales were 0.3% down year on year, while international markets were impacted by ongoing economic and geopolitical concerns, ending the period 21.9% behind the prior year.
Despite the challenges, the company has seen a positive start to the third quarter, with strong trading in July and a robust order book, particularly for low-carbon and carbon-neutral products. AIREA remains committed to innovation, with several new product launches scheduled for the second half of the year. The Group's major investment in its manufacturing facility in Ossett, West Yorkshire, remains on track to be completed in early 2025, marking a significant step in the Group's ongoing transformation.
The second quarter sales dip has led to higher than normal inventory levels at the period end. The Board is taking appropriate action to address this in the second half of the year and will review the Group's current stockholding policy to introduce a more efficient and cash generative strategy.
Looking ahead, the Board anticipates a continued improvement in trading during the second half of the year. However, due to the difficult conditions in the second quarter and the continued investment in the Group's transformation, the Board has moderated its full year sales growth and profit expectations. Despite this, the Board remains confident in the Group's long-term trading and growth prospects.
The Group's interim results for the period will be announced on 26 September 2024. AIREA plc can be contacted for further information.