Half-year Results
AIREA PLC reported a strong first half for the six months ended 30 June 2026, with group revenue increasing by 10.2% to £10.8 million, and operating profit rising to £0.5 million. Profit before tax improved significantly to £0.2 million from a £0.04 million loss in the prior year, with earnings per share at 0.57p. The company highlighted that its major manufacturing investment is now fully operational, contributing to a 7.4% growth in sales volume and a recovery in international markets. Net cash increased to £0.4 million, and the company remains confident in its future growth prospects despite global market uncertainties.
| Half year to 30 Jun 2026 | Now | Year before | Change |
|---|---|---|---|
| Revenue | £10.8m | £9.8m | +9.9% |
| Operating profit | £0.5m | £0.3m | +71.4% |
| Adj. operating profit | £0.5m | £0.6m | −22.9% |
| Profit before tax | £0.2m | (£0.0m) | |
| Net income | £0.2m | (£0.2m) | |
| Cash from operations | £0.4m | £1.8m | −75.7% |
| Cash | £0.7m | £1.8m | −59.8% |
Figures as reported, converted to £ where needed – see all financials.
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Strong first half performance with major manufacturing investment fully operational
AIREA plc (AIM: AIEA), the UK design-led specialist flooring company, manufacturing innovative and sustainable solutions for UK and international markets, today announces its interim results for the six months ended 30 June 2026 (the ‘Period’).
Financial summary
Group revenue increased by 10.2% to £10.8m (2025: £9.8m)
Operating profit increased to £0.5m (2025: £0.3m)
Profit before tax increased to £0.2m (2025: £0.04m loss)
Earnings per share increased to 0.57p (2025: ((0.54p))
EBITDA increased to £0.9m (2025: £0.7m)
Net cash increased to £0.4m (2025: £nil)
Operational highlights
Major manufacturing investment fully operational
Strong sales performance in the UK and ROI with year-on-year growth of 10.2%
Recovery in international markets delivering year-on-year growth of 9.9%
Group sales volume growth of 7.4%
Further enhancement of carbon-neutral range with successful launch of surface story® and refresh of arctic®
Martin Toogood, Non-Executive Chairman of AIREA plc, commented:
“The Group has delivered an encouraging trading performance in the first half of the year. Group sales increased by 10.2% above the prior year, with UK and ROI sales 10.2% ahead and international sales recovering to deliver growth of 9.9%.
“The Group has experienced positive trading in the third quarter and the order book remains healthy. The business continues to focus on innovation with further new product launches expected over the remainder of the second half.
“The Board is delighted to report that the major transformational investment in the Group’s manufacturing facility is now fully operational and production is expected to scale up in the coming months. The facility is also expected to further enhance the Group’s sustainability credentials by utilising energy more efficiently. The additional capacity will also provide the Group with a solid platform for growth and enable it to capitalise on future market opportunities.
“While global market conditions remain uncertain and challenging, the Board has continued confidence that its recent investments will provide greater stability to the Group and support the delivery of sustained profitable growth.”
Ends –
Chief Executive Officer’s Statement
Introduction
I am pleased to report the Group’s interim results for the six months ended 30 June 2026. Group sales for the Period were 10.2% ahead of the prior year. The UK and ROI delivered another strong performance, while sales in our international markets recovered strongly despite ongoing economic and geopolitical uncertainty.
The Group’s major transformational investment in its new manufacturing facility is now fully operational. This investment substantially increases capacity and incorporates automated processes using the latest cutting-edge Artificial Intelligence imagery and inspection technology, positioning the facility amongst the best in class. This strategic investment will optimise the facility’s potential, future-proof the business and enhance shareholder returns. Decommissioning of the existing facility will commence in the fourth quarter of 2026.
Results
Revenue for the Period was 10.2% ahead year on year at £10.8m (2025: £9.8m). The UK and ROI delivered another strong performance, with sales at the end of the Period 10.2% ahead of the prior year. Sales in the Group’s international markets performed well, ending the Period 9.9% above the prior year.
Operating profit increased to £0.5m (2025: £0.3m). After charging net finance costs of £0.3m (2025: £0.3m), profit before tax increased to £0.2m (2025: loss of £0.04m). Taxation credit was £0.02m (2025: £0.2m charge), resulting in the Group reporting a profit of £0.2m (2025: loss of £0.2m) with basic earnings per share at 0.57p (2025: (0.54p)).
Operating cash flows before movements in working capital were £0.9m (2025: £0.8m). Working capital movements increased in the period to £0.1m (2025: £1.0m decrease), the prior year movement relating to a reduction of £1.0m in deposits that had been paid at the end of 2024 to suppliers of key components for the new manufacturing facility. As in previous years, following the normal busy summer trading period, the second half of the year is expected to see a reduction in inventory levels. Capital expenditure decreased to £1.1m (2025: £2.5m) as the major investment in the Group’s manufacturing facility neared completion.
Net cash (cash less loans and borrowings) at the end of the Period was £0.4m (2025: £nil). In January 2026, the Group renewed its banking facilities which included secured short-term funding in the form of a supply chain finance facility to the value of £3.2m. As at 30 June 2026, the Group had utilised £0.1m 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 (2025: £1.0m).
The deficit on the defined benefit pension scheme continues to decrease and was £2.5m (2025: £4.5m deficit) at the end of the Period. The Group has continued to adhere to its recovery plan commitments that were formally agreed with The Pensions Regulator. The commitments included contributions of £0.3m from the Group, paid in both July 2024 and July 2025, followed by monthly contributions of £62,500 from August 2025. The trustees continue to review the scheme’s investments with the objective of further mitigating its long-term risk profile.
Current Trading and Outlook
The Board is encouraged with the positive trading in the third quarter, despite geopolitical uncertainty. The Group is closely monitoring the ongoing tensions in the Middle East, although its Dubai showroom continues to operate with minimal disruption.
With the major new transformational manufacturing facility now fully operational, the Group is focused on increasing volume throughput to meet customer demand. Delivering growth through this investment remains a fundamental part of the Group’s ongoing strategy, enabling it to expand into new markets with a more sustainable and innovative product range.
The Board is aware of the challenges affecting the wider commercial flooring market. These have had no adverse impact on the Group and may present opportunities to strengthen its market position in the future.
The Group will also maintain its focus on cash preservation and will therefore not be proposing an interim dividend at this time (2025: £nil).
The Board expects the current trading to continue through the remainder of the year and remains confident in the Group’s long-term prospects and ability to deliver sustainable long-term value for our shareholders.
Médéric Payne
Chief Executive Officer
Consolidated Income Statement
6 months ended 30 June 2026
| Unaudited 6 months ended 30 June 2026 | Unaudited 6 months ended 30 June 2025 | Audited 12 months ended 31 December 2025 | ||||||
|---|---|---|---|---|---|---|---|---|
| £’000 | £’000 | £’000 | ||||||
| Revenue | 10,793 | 9,817 | 21,447 | |||||
| Operating costs | (10,308) | (9,366) | (20,474) | |||||
| Other operating income | - | 178 | 180 | |||||
| Underlying operating profit | 485 | 629 | 1,153 | |||||
| Non-recurring items | - | (346) | (237) | |||||
| Operating profit | 485 | 283 | 916 | |||||
| Finance income | 7 | - | 1 | |||||
| Finance costs | (288) | (327) | (706) | |||||
| Profit/(loss) before taxation | 204 | (44) | 211 | |||||
| Taxation | 17 | (163) | 771 | |||||
| Profit/(loss) attributable to shareholders of the Group | 221 | (207) | 982 | |||||
| Earnings per share (basic and diluted) for the Group | 0.57p | (0.54p) | 2.54p | |||||
| Consolidated Statement of Comprehensive Income | ||||||||
| 6 months ended 30 June 2026 | ||||||||
| Unaudited | Unaudited | Audited | ||||||
| 6 months | 6 months | 12 months | ||||||
| ended | ended | ended | ||||||
| 30 June | 30 June | 31 December | ||||||
| 2026 | 2025 | 2025 | ||||||
| £’000 | £’000 | £’000 | ||||||
| Profit/(loss) attributable to shareholders of the Group | 221 | (207) | 982 | |||||
| Items that will not be reclassified to profit or loss Remeasurement of the net defined benefit liability | 446 | (250) | 942 | |||||
| Related deferred taxation | (205) | 63 | (389) | |||||
| 241 | (187) | 553 | ||||||
| Items that will be reclassified subsequently to profit or loss when specific conditions are met Revaluation of property | – | – | 86 | |||||
| Related deferred taxation | – | – | (21) | |||||
| – | – | 65 | ||||||
| Total other comprehensive income/(loss) | 241 | (187) | 618 | |||||
| Total comprehensive income/(loss) attributable to shareholders of the Group | 462 | (394) | 1,600 | |||||
| Consolidated Balance Sheet | ||||||||
| as at 30 June 2026 | ||||||||
| Unaudited 30 June 2026 | Unaudited 30 June 2025 | Audited 31 December 2025 | ||||||
| £’000 | £’000 | £’000 | ||||||
| Non-current assets | ||||||||
| Property, plant and equipment | 13,561 | 10,659 | 12,733 | |||||
| Intangible assets | 80 | 35 | 97 | |||||
| Right-of-use asset | 1,562 | 1,663 | 1,593 | |||||
| Deferred tax asset | 696 | 963 | 826 | |||||
| 15,899 | 13,320 | 15,249 | ||||||
| Current assets | ||||||||
| Investment property held for resale | - | 4,100 | - | |||||
| Inventories | 6,616 | 6,651 | 5,465 | |||||
| Trade and other receivables | 3,434 | 2,906 | 2,722 | |||||
| Cash and cash equivalents | 739 | 1,839 | 2,012 | |||||
| 10,789 | 15,496 | 10,199 | ||||||
| Total assets | 26,688 | 28,816 | 25,448 | |||||
| Current liabilities | ||||||||
| Trade and other payables | (4,523) | (4,429) | (2,733) | |||||
| Lease liabilities | (130) | (190) | (157) | |||||
| Supply chain finance | (71) | (1,142) | - | |||||
| Loans and borrowings | (230) | (413) | (323) | |||||
| (4,954) | (6,174) | (3,213) | ||||||
| Non-current liabilities | ||||||||
| Deferred tax | (2,167) | (2,540) | (2,010) | |||||
| Pension deficit | (2,474) | (4,546) | (3,027) | |||||
| Lease liabilities | (94) | (224) | (159) | |||||
| Loans and borrowings | (59) | (290) | (175) | |||||
| (4,794) | (7,600) | (5,371) | ||||||
| Total liabilities | (9,748) | (13,774) | (8,584) | |||||
| Net assets | 16,940 | 15,042 | 16,864 | |||||
| Equity | ||||||||
| Called up share capital | 10,339 | 10,339 | 10,339 | |||||
| Share premium account | 504 | 504 | 504 | |||||
| Own s hares | (932) | (991) | (932) | |||||
| Share-based payment reserve | 276 | 448 | 276 | |||||
| Capital redemption reserve | 3,617 | 3,617 | 3,617 | |||||
| Revaluation reserve | 1,860 | 3,448 | 1,860 | |||||
| Retained earnings | 1,276 | (2,323) | 1,200 | |||||
| Total equity | 16,940 | 15,042 | 16,864 | |||||
| Consolidated Cash Flow Statement | ||||||||
| 6 months ended 30 June 2026 | ||||||||
| Unaudited 6 months ended 30 June 2026 | Unaudited 6 months ended 30 June 2025 | Audited 12 months ended 31 December 2025 | ||||||
| £’000 | £’000 | £’000 | ||||||
| Cash flow from operating activities | ||||||||
| Profit/(loss) for the period | 221 | (207) | 982 | |||||
| Depreciation | 243 | 229 | 484 | |||||
| Depreciation of right-of-use assets | 130 | 143 | 279 | |||||
| Amortisation | 17 | 12 | 28 | |||||
| Share-based payment expense/(credit) | - | 131 | (41) | |||||
| Net f inance costs | 281 | 327 | 705 | |||||
| Tax (credit)/charge | (17) | 163 | (771) | |||||
| Profit on disposal of investment property | - | - | (50) | |||||
| Operating cash flows before movements in working capital | 875 | 798 | 1,616 | |||||
| Increase in inventory | (1,151) | (1,796) | (610) | |||||
| (Increase)/Decrease in trade and other receivables | (712) | 1,429 | 1,613 | |||||
| Increase/(Decrease) in trade and other payables | 1,790 | 1,328 | (377) | |||||
| Cash generated from operations | 802 | 1,759 | 2,242 | |||||
| Contributions to defined benefit pension scheme | (375) | - | (613) | |||||
| Net cash generated from operating activities | 427 | 1,759 | 1,629 | |||||
| Cash flows from investing activities | ||||||||
| Payments to acquire intangible fixed assets | - | - | (79) | |||||
| Payments to acquire tangible fixed assets | (1,062) | (2,542) | (4,785) | |||||
| Receipt from sale investment property | - | - | 4,150 | |||||
| Interest received | 7 | - | 1 | |||||
| Net cash used in investing activities | (1,055) | (2,542) | (713) | |||||
| Cash flows from financing activities | ||||||||
| Interest paid on lease liabilities | (8) | (14) | (38) | |||||
| Interest paid on borrowings | (12) | (21) | (93) | |||||
| Interest paid on supply chain finance | - | (2) | - | |||||
| Proceeds from supply chain finance | 71 | 1,469 | - | |||||
| Principal paid on lease liabilities | (101) | (115) | (199) | |||||
| Equity dividends paid | (386) | (231) | (231) | |||||
| Repayment of supply chain finance | - | (327) | - | |||||
| Repayment of loans | (209) | (200) | (406) | |||||
| Net cash (used)/generated in financing activities | (645) | 559 | (967) | |||||
| Net decrease in cash and cash equivalents | (1,273) | (224) | (51) | |||||
| Cash and cash equivalents at start of the period | 2,012 | 2,063 | 2,063 | |||||
| Cash and cash equivalents at end of the period | 739 | 1,839 | 2,012 | |||||
| Consolidated Statement of Changes in Equity | ||||||||
| 6 months ended 30 June 2026 | ||||||||
| Share capital | Share premium account | Own Shares | Share- based payment reserve | Capital redemption reserve | Revaluation Reserve | Retained earnings | Total equity | |
| £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | £’000 | |
| At 1 January 2025 10,339 | 504 | (1,217) | 317 | 3,617 | 3,448 | (1,472) | 15,536 | |
| Comprehensive income | ||||||||
| for the year | ||||||||
| Profit for the year – | – | – | – | – | – | 982 | 982 | |
| Remeasurement of the net | ||||||||
| defined benefit liability – | – | – | – | – | – | 553 | 553 | |
| Revaluation of property – | – | – | – | – | 86 | (21) | 65 | |
| Total comprehensive income for the year – | – | – | – | – | 86 | 1,514 | 1,600 | |
| Contributions by and distributions to owners | ||||||||
| Dividend paid | – – – | – – – (231) | (231) | |||||
| Share-based payment | – – – | (41) – – – | (41) | |||||
| Own share transfer Revaluation reserve Transfer | – – 285 – – – | – – – (285) – – (1,674) 1,674 | – – | |||||
| Total contributions by and distributions to owners | – | – | 285 | (41) | – | (1,674) | 1,158 | (272) |
| At 31 December 2025 | ||||||||
| and 1 January 2026 10,339 | 504 | (932) | 276 | 3,617 | 1,860 | 1,200 | 16,864 | |
| Comprehensive income for the period Profit for the period – Remeasurement of the net defined benefit liability – | – – | – – | – – | – – | – – | 221 241 | 221 241 | |
| Total comprehensive income for the period – | – | – | – | – | – | 462 | 462 | |
| Contributions by and distributions to owners | ||||||||
| Dividend paid – | – | – | – | – | – | (386) | (386) | |
| Total contributions by and distributions to owners – | – | – | – | – | – | (386) | (386) | |
| At 30 June 2026 10,339 | 504 | (932) | 276 | 3,617 | 1,860 | 1,276 | 16,940 | |
Notes to the Financial Statements
BASIS OF PREPARATION AND ACCOUNTING POLICIES
The financial information for the six months ended 30 June 2026 and the six months ended 30 June 2025 have not been audited and do not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006.
The financial information relating to the year ended 31 December 2025 does not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006. This information is based on the Group’s statutory accounts for that period. The statutory accounts were prepared in accordance with UK adopted International Accounting Standards and received an unqualified audit report and did not contain statements under Section 498(2) or (3) of the Companies Act 2006. These financial statements have been filed with the Registrar of Companies.
These interim financial statements have been prepared using the recognition and measurement principles of UK adopted International Accounting Standards. The accounting policies used are the same as those used in preparing the financial statements for the period ended 31 December 2025. These policies are set out in the annual report and accounts for the period ended 31 December 2025 which is available on the Company’s website at www.aireaplc.co.uk.
Further copies of this report are available from the Company Secretary at the registered office at Victoria Mills, The Green, Ossett, Wakefield, West Yorkshire WF5 0AN and are also available, along with this announcement, on the Company’s website at www.aireaplc.co.uk.
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