FireAngel SafetyTech - Standby Letter of Credit Facility

Fireangel Safety Technology

20/06/2022 07:00

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RNS Number : 3876P  FireAngel Safety Technology Group  20 June 2022

20 June 2022

 

FireAngel Safety Technology Group plc

('FireAngel' or the 'Company')

 

FireAngel (AIM: FA.), a leading developer and supplier of home safety
products, announces it has signed an agreement with its bank, HSBC UK Bank plc
and UK Export Finance, for a standby letter of credit facility which is
supported by UK Export Finance, up to a combined sum of £3,500,000, for an
initial term of 12 months (the "Facility").

The Facility will attract a quarterly charge of 0.55% on the total amount
available under the Facility. When it is deployed, it will not add to the
Company's net debt position, and, over time, is expected to improve the
Company's creditor days. The Company's net debt at £3.8m on 16 June 2022 is
currently materially lower than previously expected, and whilst positive, this
is mainly a function of working capital timing as production levels have built
up during 2Q 2022. Net debt levels are expected to converge with expectations
in 2H 2022.

The Facility supports the variability of working capital arrangements with
certain suppliers, which is driven by longer lead times on components and the
expected growth of the Company. The Board believes that the Facility is a
prudent measure which will help offset the unpredictability in the Company's
supply chain and input prices.

John Conoley, Executive Chairman of FireAngel, commented: "The continued
support of our bank in providing this facility will provide greater certainty
in our supply chain through offering additional reassurance for certain
suppliers who are procuring the longer-term inventory needed for the growth of
the Company over the next few years."

 

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)
 Tom Griffiths/David Coaten/Tom Knibbs               020 7408 4050

 Singer Capital Markets (Joint broker)
 Rick Thompson/Alex Bond
                                                     020 7496 3000
 Houston (Financial PR)
 Kate Hoare/Joe Burgess                              0204 529 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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