FireAngel SafetyTech - AGM Statement

Fireangel Safety Technology

21/06/2022 07:00

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RNS Number : 5317P  FireAngel Safety Technology Group  21 June 2022

21 June 2022

FireAngel Safety Technology Group plc

('FireAngel', the 'Company' or the 'Group')

AGM Statement

 

FireAngel (AIM: FA.), a leading developer and supplier of home safety
products, is holding its Annual General Meeting ('AGM') today at which John
Conoley, its Executive Chairman, will make the following statement:

"The Company expects to deliver a first half performance to 30 June 2022 in
line with the Board's expectations. Demand has remained higher than the
Company's ability to supply and is expected to remain high during the
remainder of 2022.

"In the first few months of this year, as expected, the Company continued to
absorb additional costs due to inflation, which impacted margins. We began to
see the impact of mitigation activity on the Company's gross margin
performance in 2Q 2022, in line with the Board's expectations, and gross
margin is expected to improve more strongly in 3Q onwards. Further targeted
price rises of the Company's products are already scheduled for later this
year as additional protection against rising input prices. While inflation was
in part driven by component shortages, those components have been easier to
procure as 2Q has progressed, which has most recently enabled the Company to
rebuild volume production of previously restricted higher margin products.

"Fortunately, Covid-19 challenges have barely impacted the Company so far this
year, and the very difficult supply situation, previously highlighted, has
eased greatly. The Company has identified enough components to be able to
reach its revenue goals this year. Foreign exchange, especially the
relationship between the US dollar and the British pound, has become more
volatile than anticipated. Despite this, and the unprecedented challenges the
Company has faced, the Board still expects the Company to meet its market
expectations for the year ending 31 December 2022. The Board continues to
monitor the macro situation and is ready to respond as appropriate. The
Company has experienced no direct impacts from the Ukraine situation to date
and does not directly source any materials from that country.

"The fundraising announced in April 2021 provided the Company with the
necessary funds to deliver its strategic goals and the net proceeds have laid
the foundation for the Company to return to profitability and positive cash
generation. As announced on 20 June 2022, the standby letter of credit secured
through our bank, HSBC UK Bank plc, will assist the Company in securing longer
term component procurement than was previously required, thereby easing the
credit relationship between certain suppliers and the Company, and ultimately
offering further certainty on production volumes. As previously announced, net
debt is expected to be materially lower than expected at the half year,
although net debt levels will converge with expectations again as 2H
progresses.

"FireAngel's compelling proposition to protect and save lives with innovative
home safety technology remains strong and the Group is well positioned for
future growth. Legislative and societal direction continues to support demand
for the Company's products."

 

For further information, please contact:

 

 FireAngel Safety Technology Group plc                024 7771 7700
 John Conoley, Executive Chairman
 Zoe Fox, Chief Finance Officer

 Shore Capital (Nominated adviser and Joint broker)   020 7408 4050
 Tom Griffiths/David Coaten

 Singer Capital Markets (Joint Broker)                020 7496 3000
 Rick Thompson/Alex Bond

 Houston (Financial PR)

 Kate Hoare/Joe Burgess                               020 4529 0549

 

Notes to Editors

 

About FireAngel Safety Technology Group plc

FireAngel's mission is to protect and save lives by making innovative, home
safety products which are simple and accessible. FireAngel is one of the
market leaders in the European home safety products market.

FireAngel's principal products are connected smoke alarms, CO alarms, heat
alarms and accessories.  The Company has an extensive portfolio of patented
intellectual property in Europe, the US and other selected territories.
Products are sold under FireAngel's leading brands of FireAngel, FireAngel
Pro, FireAngel Specification and AngelEye.

For further product information, please visit: www.fireangeltech.com
(http://www.fireangeltech.com/)

 

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