RCS - LifeSafe Holdings - Intention to float on AIM

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14/06/2022 08:15

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RNS Number : 7126O  LifeSafe Holdings PLC  14 June 2022

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should not subscribe for or purchase any securities referred to in this
announcement except in compliance with applicable securities laws and
regulation and on the basis of the information in the final admission document
("Admission Document") to be published by the Company, and any supplement
thereto, in connection with the placing ("Placing") of its ordinary shares
("Shares") and the proposed admission of the Shares to trading on the AIM
market of London Stock Exchange plc ("London Stock Exchange"). A copy of the
Admission Document will, following publication, be available for viewing on
the Company's website at www.lifesafeholdingsplc.com

 

This announcement constitutes a financial promotion for the purposes of
section 21 of the Financial Services and Markets Act 2000 and has been
approved by W H Ireland Limited which is authorised and regulated by the
Financial Conduct Authority.

 

14 June 2022

 

LifeSafe Holdings plc

 

Intention to float on AIM

 

LifeSafe Holdings plc ('LifeSafe', the 'Company' or the 'Group'), a fire
safety technology business with innovative fire safety products, announces its
intention to seek admission of its shares to trading on AIM, a market of the
London Stock Exchange ('Admission').  The Group is seeking to raise £3
million by way of a placing of new ordinary shares (the 'Placing') on
Admission, which is expected to take place in June 2022.  WH Ireland Limited
is acting as Nominated Advisor and Broker to the Group in relation to the
Placing and Admission.

 

LifeSafe has developed what the Directors believe to be market disrupting,
eco-friendly fire safety protection products to both protect (via fire
extinguishers) and detect (via carbon monoxide, smoke and heat alarms) fires.
 At the centre of the Group's product range is the FER1000 extinguishing
fluid, which has been developed by LifeSafe to extinguish five different types
of fire: electrical, paper, textiles, cooking oil, and petrol and diesel.
 The Group's best-selling product using this patent pending extinguishing
fluid is the StaySafe 5-in-1 fire extinguisher.  It was launched on Amazon
Prime in the UK in August 2021 and subsequently became Amazon Prime's top
selling fire extinguisher in the UK in the same month.

 

The Board believes that the fluid and its associated product range have an
international addressable market, will save many lives and will protect
properties and belongings.  LifeSafe believes that Admission will enable the
Group to accelerate its growth through enhancing its profile and standing in
target markets.  The Directors believe that the Group's growth will be driven
by the innovative nature of its products which extinguish five types of fire
and its new fluid derivatives and product launches expected in 2023.

 

LifeSafe will leverage the Board and Senior Management's expertise, experience
and contacts in the fire safety industry to drive value creation in the Group.
 In the year ended 31 December 2021, the Group generated revenues of £670k
and a loss post taxation of £1.5 million.  Since 31 December 2021, the Group
has continued to market its products in the UK and Europe and launched them in
the US and Canada earlier this year.  With total sales having increased each
month LifeSafe believes that the Group has excellent prospects.

 

Key competitive strengths

 

LifeSafe's purpose is to generate significant returns for Shareholders through
establishing new markets for its innovative fire extinguisher products.  The
Directors believe that the Group has the following key competitive strengths:

 

·        Strong management team - LifeSafe has a highly experienced
management team which is seeking to apply innovative new technologies to
create new markets for the Group in fire safety;

 

·        High quality product - LifeSafe's StaySafe 5-in-1
extinguisher, a compact, fully recyclable, lightweight, maintenance-free,
easy-to-use, fire extinguisher, which contains its FER1000 fire extinguishing
fluid, which is both non-toxic and environmentally friendly, and extinguishes
five types of fire;

 

·        Proven digital marketing strategy - LifeSafe's digital
marketing strategy and expertise has enabled it to grow sales strongly,
achieving a high return on advertising spend;

 

·        Exceptional customer service - LifeSafe's service led culture
is reflected in the high levels of customer satisfaction as seen through its
Trustpilot rating of "Excellent";

 

·    Multi-channel sales strategy - LifeSafe has established relationships
internationally with Amazon, and in the UK with Screwfix Direct Ltd retail
group ("Screwfix"), and increasingly with other wholesale customers, such as
Bunzl, various UK housing associations and home insurance companies;

 

·        Revenue enhancing LifeSafe App - the App enables the Company
to market its products directly to interested customers and provide useful
tutorials; and

 

·        Significant research & development capabilities -
LifeSafe has a strong pipeline of innovative new products and fluid
derivatives expected to be launched in the first half of 2023.

 

Neil Smith, Chief Executive Officer of LifeSafe, commented: "We are delighted
to announce our intention to float on AIM as this represents a new and
exciting chapter in the Group's history.

 

"We are already making good progress in creating and meeting increasing demand
for our life saving products both via our international multi-channel sales
strategy which initially targets the consumer market via digital channels and
through wholesale and industrial channels.

 

"It is our firm belief that every home should have our simple to use and
highly effective StaySafe 5-in-1 fire extinguisher to protect life and
property. Furthermore, and building on the success of our current line up, I
am equally as excited about our pipeline of innovative new fluid, and products
that we believe will widen our portfolio and open new markets.

 

"The IPO will provide us with the profile, capital and platform to go on to
capture more of what the Directors believe is a growing market with our
innovative fire extinguishing products, whilst delivering significant value
for our shareholders."

 

- Ends -

 

FOR FURTHER ENQUIRIES:

 

 LifeSafe Holdings plc    Via Buchanan
 Neil Smith, CEO          Tel: +44 (0) 20 7466 5000
 Mike Stilwell, CFO

 WH Ireland Limited       Tel: +44 (0)20 7220 1666
 Chris Fielding
 Darshan Patel

 Buchanan Communications  Tel: +44 (0) 20 7466 5000
 Henry Harrison-Topham    LifeSafe@buchanan.uk.com (mailto:LifeSafe@buchanan.uk.com)
 Kim Looringh-van Beeck
 Jack Devoy
 George Cleary

 

 

Overview of LifeSafe

 

The Company was founded as Firescue UK LTD in 2015, in order to develop an
innovative, novel and eco-friendly fluid capable of extinguishing multiple
types of fire.  Following a successful testing programme, an initial patent
application was submitted in April 2017 directed to the Company's FER1000
fluid.  At that time, the Company was focused on selling the fluid to the
traditional fire safety industry as a replacement for traditional
extinguishing media.

 

In April 2019, Dominic Berger joined the management team as Executive
Chairman. Subsequently, in

2020, Neil Smith, previously chief executive officer of FireAngel Safety
Technology Group plc ('FireAngel'), was contracted as a consultant, and was
appointed Chief Executive Officer in October 2021.  Most recently, in January
2022, Mike Stilwell, who had worked with Neil Smith at FireAngel, joined as
Chief Financial Officer.

 

Following a strategic review, the Board re-focused the sale of the Company's
products towards end-user consumers and re-branded under the StaySafe brand.
 In July 2021, the Board re-named the parent company LifeSafe Holdings
Limited.

 

The Group's best-selling product, the StaySafe 5-in-1, which is certified to
extinguish five types of fire, was subsequently launched on Amazon Prime in
the UK in August 2021, in selected European countries in October 2021, in the
US in February 2022 and, most recently, in Canada in April 2022.  The
StaySafe 5-in-1 became Amazon Prime's top selling fire extinguisher in the UK
within the same month.

 

StaySafe 5-in-1 and the PanSafe pan fire extinguisher were launched in
Screwfix in Spring 2022 with the StaySafe range of smoke, heat and carbon
monoxide detectors also now available on www.screwfix.com
(http://www.screwfix.com) .

 

LifeSafe is developing new fluid derivations and products for launch in 2023.

 

LifeSafe's products

 

Extinguishing fluids

 

FER1000 extinguishing fluid

 

At the centre of the Group's existing product range is the FER1000
extinguishing fluid, which has been developed by the Group to extinguish five
types of fire, these being: electrical; paper; textiles; cooking oil; and
petrol and diesel.

 

The FER1000 fluid, for which a UK patent application was filed on 21 April
2017, is environmentally friendly and both non-toxic and non-hazardous.  It
has been tested and verified by the British Standards Institute in the UK and
by Apragaz in Europe to extinguish, in an environmentally safe manner, each of
the aforementioned types of fire, albeit verified for diesel only in Europe.

 

PAN 3000 extinguishing fluid

 

The PAN 3000 is an extinguishing fluid which, when released, expands, thereby
smothering fires associated with cooking oil.

 

Protection products

 

StaySafe 5-in-1 fire extinguisher

 

The StaySafe 5-in-1 fire extinguisher, the Company's best-selling product, is
a lightweight, easy to use, maintenance-free, fully recyclable PET aerosol
fire bottle, containing the Company's FER1000 eco-friendly extinguishing
fluid.  The fluid is contained within a bag-on-valve system, which consists
of an aerosol valve with a crimped bag, with a pressurised air propellant in
the space between the bag and the PET bottle.

 

StaySafe PanSafe cooking oil fire extinguisher

 

The StaySafe PanSafe is a sachet containing the PAN 3000 variant of the
FER1000 fluid targeted specifically at cooking oil fires.  The sachet
contains a strengthener so that it can be placed by hand into a pan fire,
which causes the fluid to be released, so expanding and smothering cooking oil
fires, thereby extinguishing them and preventing re-ignition.

 

Detection products

 

StaySafe carbon monoxide detector

The StaySafe carbon monoxide detector uses a sensor to warn occupants of the
presence of high levels of carbon monoxide, a highly toxic gas, which is
produced when fuel burns inefficiently. The StaySafe carbon monoxide detector
conforms to the EN 50291-1:2018 standard.

 

 

StaySafe smoke detector

 

The StaySafe smoke detector, which is certified to the EN 14604:2005/AC:2008
standard, is designed to provide an early warning of a fire, by detecting
smouldering fires.

 

StaySafe heat detector

 

The StaySafe heat detector, which is compliant with the BS 5446-2:2003
standard, has been designed to detect changes in temperature in environments
where a smoke detector may sound false alarms due to the occasional presence
of smoke.

 

In addition to each of the individual products summarised above, LifeSafe also
sells a number of product bundles comprising different combinations of its
extinguishers and detectors for specific applications, so broadening the
addressable market. In addition to each of the bundles being available on
www.lifesafetechnologies.co.uk, the Kitchen Safety and Home Safety Plus
bundles are also available on www.screwfix.com.

 

The LifeSafe App

 

As a key element of its strategy, the Group has also developed the LifeSafe
App, which is available on both Apple and Android platforms.

 

The App, which is subject to continuing development and enhancement, is
intended to drive additional revenues by building a direct relationship with
customers through:

 

•             educating and informing them as to how to avoid
fires in the home;

•             enabling customers to purchase products from the
StaySafe range; and;

•             demonstrating the innovative features and ease of
use of the StaySafe range of products.

 

The Directors intend that the LifeSafe App will be subject to continuing
development to increase its functionality and its ability to further enhance
revenues.

 

Market background

 

The Board believes that the innovative ability of the Group's StaySafe
extinguishers to extinguish five types of fire has the potential to open up
new markets outside the traditional fire protection market, having seen
revenues grow month-on-month since the launch of the StaySafe 5-in-1 on Amazon
Prime in August 2021.

 

The Board understands that there were 23.5 million households in England in
2021, while other historic data (Source: English Housing Survey ONS, 2017),
showed that only 17% of households in England are equipped with an
extinguisher. In the Board's opinion, this indicates an addressable market in
England of approximately 19 million homes without an extinguisher, in addition
to the other possible uses in vehicles, caravans, boats and garages. The Board
also believes that there are consumer markets for the Group's products
elsewhere, including in particular North America and Europe.

 

In addition to demand from these consumer markets, the Board also anticipates
creating demand for the Group's products from wholesale customers, such as
retail outlets, hotels and restaurants, in addition to customers in
industry.  The Board is therefore confident that the Group can establish new
markets for the Group's StaySafe products.

 

LifeSafe's strategy

 

LifeSafe's purpose is to generate significant returns for its Shareholders
through establishing and serving substantial new markets for its innovative
fire extinguishing products.

 

The Company, led by its highly experienced management team, has developed a
business strategy which has been designed to achieve this purpose based upon
five core pillars:

 

Innovative 5-in-1 extinguisher product

The LifeSafe business has been built around the Group's highly innovative and
eco-friendly StaySafe 5-in-1 extinguisher product which extinguishes five
types of fire.  It is the Board's intention that the Group will develop
further innovative and accessible fire safety products. The new product
pipeline includes new fluid derivatives.

 

High level services

The provision of a high level of digital customer service focused on
education, satisfaction and retention, which is monitored consistently, and
reflected, in the Board's opinion, in the Group's Trustpilot rating of
"Excellent".

 

Digital expertise

Since the re-launch of its business, the Board has adopted a "Digital First"
approach, utilising digital sales and distribution channels to commercialise
and generate demand for the Group's products, including, importantly, Amazon
and the Amazon Launchpad platform, and via the Company's own website,
www.lifesafetechnologies.co.uk and equivalent sites outside the UK.

 

International expansion

Having established increasing demand for the Group's products in the UK,
LifeSafe has already started building demand for its products in Europe, the
US and Canada, in an -effective manner through its "Digital First" strategy.

 

Multi-channel sales

As demand and awareness for the Group's products increase within the consumer
market, it is the Board's intention to leverage that awareness to stimulate
demand in other sales channels such as the wholesale and industrial markets,
including, for example, through Screwfix and various housing associations, and
for the fluids in industrial applications.

 

Manufacturing and supply

The Group's manufacturing and supply strategy is to work with established
experienced suppliers with reputations for high quality products and services.
 The Board believes that using such suppliers will facilitate rapid
expansion, whilst maintaining a consistent supply of high-quality products
with minimal capital outlay for the Group.

 

The Board recognises the importance of corporate social responsibility in
society, the community and the environment, and, as such, actively ensures its
supply chain partners comply with the Group's stringent policies and
procedures to ensure it maintains the highest levels of corporate and social
responsibility.

 

In addition, the Group is a member of Sedex Advance ("Sedex"), a leading
online platform for companies to manage and improve working conditions in
global supply chains. The Group works with Sedex to ensure its supply chain
partners operate in an ethical and sustainable manner.

 

 

BOARD OF DIRECTORS

 

Dominic Berger, Executive Chairman (aged 52 years)

Dominic has over 25 years' experience in various fast-growing private and
public businesses, with expertise in building, developing and listing or
selling companies, including numerous turnaround situations.  His extensive
experience includes leading a diverse group of listed and private businesses,
including Sportsio / Umbro.com backed by Doughty Hanson, Blackstar, Venue
Solutions Holdings Plc and, until recently, being Chairman of Happy Drinks Co.
Ltd. He was also previously managing director of Umbro.com.

 

An FCA approved person, Dominic is also chief executive officer of Capital
Plus Partners, a regulated Corporate Finance business.  Recently he has also
advised businesses such as SimplyPayMe, an award winning fintech business, The
Rockster, a business producing superfood for dogs, and TECs Group, a critical
services facilities management business.  Dominic has been Chairman of
LifeSafe since April 2019.

 

Neil Smith, Chief Executive Officer (aged 51 years)

Neil has diverse experience within multi-channel retailers, technology and
e-commerce businesses, including as a commercial director at B&Q (part of
the Kingfisher Group) and Halfords Group plc.  Most recently, from February
2015 until July 2019, Neil was the group chief executive officer of AIM-quoted
FireAngel Safety Technology Group plc, a European supplier of smoke, heat and
carbon monoxide detectors.  Having joined the Group as a consultant in 2020,
Neil became CEO of LifeSafe in October 2021.

 

Michael Stilwell, Chief Financial Officer (aged 46 years)

Mike is an experienced CFO who has over six years' experience of executive
positions with publicly traded companies. He is a Chartered Accountant, having
trained with KPMG which he joined in 1997.  Mike was, from December 2018 to
January 2021, CFO of AIM-quoted FireAngel Safety Technology Group plc having
joined the group from his role as CFO of AIM-quoted Synectics plc.  Prior to
this he held senior finance roles with the Saint-Gobain Group, Coventry
Building Society and the Caparo Group. Mike, who has a first-class degree in
Accounting and Financial Analysis from the University of Warwick, joined
LifeSafe in September 2021.  He is also a part-time executive director of
Visum Technologies plc.

 

The Right Hon. Mark Field, Senior Independent Non-Executive Director (aged 57
years)

Mark is a former MP and Minister of State for Asia & Pacific at the
Foreign and Commonwealth Office who represented the Central London
constituency of the Cities of London and Westminster in the UK Parliament
between June 2001 and November 2019.  A graduate of St Edmund Hall, Oxford,
he practised as a solicitor with Freshfields in the early 1990s and then
founded, managed and sold two businesses before embarking upon public service.
 During this time, he developed expertise of the City and financial and
professional services.  As the Minister of State for Asia and the Pacific, he
travelled extensively in the region and was responsible for bilateral
relationships with China and India, developing future UK strategy and
co-operation with ASEAN, and promoting security and trade partnerships with
Australia and New Zealand.  Since leaving Parliament he has embarked upon a
portfolio career, which includes roles as the non-executive chairman of the
Isle of Man based Capital International Bank; senior adviser to the Cayman
Islands Government Office in London; and consultant to turnaround/corporate
restructuring specialists, Buchler Phillips.  He is also a non-executive
director of AIM-quoted Frenkel Topping Group PLC.

 

 

Emma Hynes, Independent Non-Executive Director (aged 46 years)

Emma is a barrister who specialises in construction and commercial matters
including professional negligence claims.  She has developed a specific focus
in the arena of fire safety and legislation, and is currently instructed as
junior counsel to the Grenfell Tower Inquiry.  Before coming to the Bar in
2015, Emma had a successful career in business communications with Serco, the
Carbon Trust and Microsoft.

 

Forward looking statements

All statements, other than statements of historical fact, contained in this
announcement constitute "forward looking statements". In some cases, forward
looking statements can be identified by terms such as "may", "intend",
"might", "will", "should", "could", "would", "believe", "forecast",
"anticipate", "expect", "estimate", "predict", "project", "potential", or the
negative of these terms, and similar expressions. Such forward looking
statements are based on assumptions and estimates and involve risks,
uncertainties and other factors which may cause the actual results, financial
condition, performance and/or achievements of the Company, or industry
results, to be materially different from any future results, future financial
condition, performance and/or achievements expressed or implied by such
forward looking statements. Except as required by the AIM Rules for Companies,
the Company expressly disclaims any obligation or undertaking to release
publicly any updates or revisions to any forward-looking statements contained
in this announcement to reflect any change in the Group's expectations with
regard thereto or any change in events, conditions or circumstances on which
any such statement is based. New factors may emerge from time to time that
could cause the Company's business not to develop as it expects, and it is not
possible for the Company to predict and therefore to disclose all such
factors. Given these uncertainties, prospective investors are cautioned not to
place undue reliance on such forward-looking statements.

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