Pre-close Trading Update and Notice of Results
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AIREA plc (AIM: AIEA), the UK design-led specialist flooring company, supplying both the UK and international markets, today announces the following trading update for the six months ended 30 June 2024 (the 'Period').
Trading update
Following a strong start to the year, the Group experienced an unforeseen slowdown in the second quarter. Sales for the Period were 5.6% down year on year, though slightly ahead of the overall market trend.
UK and ROI sales ended the Period 0.3% down year on year. Sales in our international markets were impacted by ongoing economic and geopolitical concerns and ended the Period 21.9% behind the prior year.
There has been an encouraging start to the third quarter, with positive trading in July and finishing with a strong order book, especially for our low-carbon and carbon-neutral products. The Group's commitment to innovation remains steadfast, with several new product launches scheduled for the second half of the year.
The Group continues to advance its longer-term strategy. The major investment in the Group's manufacturing facility in Ossett, West Yorkshire, announced in January, 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 also review the Group's current stockholding policy with the aim of introducing a more efficient and cash generative strategy.
Outlook
The Board anticipates a continued improvement in trading during the second half of the year. However, in view of the difficult conditions in the second quarter, coupled with the continued programme of investment in the Group's transformation, the Board has moderated its full year sales growth and profit expectations.
The Board remains confident in the Group's long-term trading and growth prospects.
Notice of interim results
The Group's interim results for the Period will be announced on 26 September 2024.
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