FireAngel SafetyTech - Trading Update and Directorate Change

Fireangel Safety Technology

25/07/2023 07:00

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RNS Number : 0262H  FireAngel Safety Technology Group  25 July 2023

25 July 2023

 

FireAngel Safety Technology Group plc

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

 

 Trading Update and Directorate Change

 

Trading Update

 

FireAngel (AIM: FA), a leading developer and supplier of home safety products,
provides the following trading update for the six months ended 30 June 2023
('H1 2023' or the 'Period').

At the time of the appointment by the Company in June 2023 of Andrew Blazye as
Non-Executive Chair and Neil Radley as Chief Executive Officer, the Board
announced that a strategic review would be undertaken to explore options to
realise value for shareholders, which may or may not involve a sale of the
Company. The strategic review is progressing and the Company will provide an
update in due course. In June 2023, the Company also completed a successful
fundraising of £6.1 million before expenses (the "Fundraising"), the proceeds
of which were to reduce net debt and for working capital purposes.

During H1 2023, the Group continued to experience the impact of the trading
challenges highlighted in its trading update released on 25 April 2023. As a
result, the Board expects the Group to report unaudited sales in H1 2023 of
approximately £21.4 million, down 17 per cent on the comparable period last
year (H1 2022: £25.6 million) at an expected non-underlying gross margin of
approximately 17.9 per cent, down 4.0 per cent on the comparable period last
year (H1 2022: 21.9 per cent). H1 2023's gross profit will include £1.1
million of losses on hedging contracts (H1 2022: hedging gains of £1.4
million), the majority of which were placed during the last four months of
2022. The non-underlying loss before tax for the Period is expected to be
£3.7 million, an increase of £2.0 million on the comparable period last year
(H1 2022: £1.7 million). Non-underlying costs, which comprise restructuring,
redundancy and consultancy costs, incurred during the Period amounted to
approximately £0.5 million (H1 2022: £0.1 million).

Taking into account the net proceeds of £5.3 million from the Fundraising, as
at 30 June 2023, the Group had £1.2 million of cash (30 June 2022: £0.7
million; 31 December 2022: £1.4 million) and debt (excluding IFRS16 lease
liabilities) of £6.6 million (30 June 2022: £4.5 million; 31 December 2022:
£6.2 million). As at 30 June 2023, inventory was £10.0 million (30 June
2022: £4.7 million), which has increased due to the lower than expected sales
in H1 2023. Price increases have been implemented in Q2 2023 to offset higher
input costs and improve margins.

The Company will provide a further update on current trading and prospects in
its unaudited interim results for the six months ended 30 June 2023, which are
expected to be released in late September 2023.

Directorate Change

The Board has been notified that Simon Herrick, Senior Independent
Non-Executive Director has resigned with immediate effect due to the increased
commitments of other business interests.

Neil Radley, Chief Executive Officer of FireAngel, commented: "Andrew and I
joined FireAngel to turn the Company around and target long-term opportunities
using our many years' experience.  We are underway with the strategic review,
which is important in addressing certain key issues to drive the business
forward. With the net proceeds of last month's fundraising, we are confident
for the future and expect to see improved business momentum in H2 2023. We
look forward to updating shareholders in more depth in our interim results."

 

ENDS

For further information, please contact:

 FireAngel Safety Technology Group plc         024 7771 7700
 Neil Radley, Chief Executive Officer
 Zoe Fox, Chief Finance Officer

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

 Houston (Financial PR)
 Kate Hoare/Ben Robinson/Kelsey Traynor        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
(https://url.avanan.click/v2/___http:/www.fireangeltech.com/___.YXAxZTpzaG9yZWNhcDphOm86ZmE1YmYxYzdmZWYxNjJkOTA1ZjdmOGQzNjQ5OWFkOGQ6Njo4NzVkOjIwNTJmNTcyMDNhMDYxMzA5NTEwZjg5OTBkZjM5ODQ5N2NiNjg4ZGNkYzI0NGUzZWNjYTYzNzJkMTAxZWM5MGM6cDpU)

 

 

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