REG - Zenova Group PLC - Launch of FX500 and Year End Trading Update

ZenovaAnnouncement

30/11/2022 07:00

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RNS Number : 9984H  Zenova Group PLC  30 November 2022

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION AS STIPULATED UNDER THE UK VERSION OF THE MARKET ABUSE REGULATION NO 596/2014 ("MAR") WHICH IS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN (WITHDRAWAL) ACT 2018, AS AMENDED. ON PUBLICATION OF THIS ANNOUNCEMENT VIA A REGULATORY INFORMATION SERVICE, THIS INFORMATION IS CONSIDERED TO BE IN THE PUBLIC DOMAIN

 

30 November 2022

 

Zenova Group PLC

("Zenova", the "Company" or the "Group")

 

Launch of FX500 and Year End Trading Update

 

·    Zenova announces the launch of the Zenova FX500, a fire extinguisher
that is effective  for use on any type of fire

·    Sale of first units of Zenova FX500 for the use by the military in
Ukraine

·    Zenova makes good strategic progress by product, sector and geography albeit with slower revenues

·    Zenova products have now been specified for several regulated UK
projects which is  a key indicator of the Company's superiority and quality

 

Zenova Group PLC (AIM: ZED), specialists in fire safety and heat management
technology solutions, is pleased to announce that the Zenova FX500 fire
extinguisher will be launching in December.

An initial preorder has been received from a distributor in Ukraine, following
their own internal testing of the Zenova FX500 over the past few months; this
order will be used by the Ukrainian military and will be deployed by the end
of the year in Ukraine where it is expected that more orders will be made as
the Zenova production ramps up to meet demand.

Given that the Zenova FX500 is ideal for use in multiple global sectors and
due to the significant amount of interest it has gathered, production has
commenced in both the UK and the USA. Enquiries from the UK and USA in recent
weeks have presented encouraging signs for further orders and sub distribution
opportunities from a wide range of sectors now that the Company is in a
position to manufacture in key regions.

The Zenova FX500 is a high-performance handheld fire extinguisher that is
tested by independent experts and adheres to the highest industry standards.
The fire extinguisher is safe to use on any type of fire, reduces the risk of
reignition once the fire has been extinguished and has been tested to the BS
6165 standard. It boasts an efficient and compact design, allowing for it to
be dispersed from any 360° orientation, which ensures that the Zenova FX500
is convenient to handle and simple to operate while providing the user with a
highly effective and fast working fire extinguisher.

Trading Update

The Company believes that Zenova products remain best in class and outperform
competitor products and as such, the Board's primary job at this time is one
of continued market penetration. This is developing well as a result of the
solid base the programme of R&D, certification and testing has provided.
Despite a global pandemic and war in Europe, resulting in global resource and
shipping delay issues affecting many sectors, the Company is making good
progress across its product range, including those still in development.

As announced in previous months Zenova products have now been specified for a
number of projects throughout the UK, including social housing. This is a
significant achievement in a short period of time as, once specified, the rate
of growth of sales and brand recognition should only increase. The board
believes that to become specified by architects, Local Authorities, specialist
consultants is a key indicator of the superiority and quality the Zenova
products bring to the market.

Successful trials and pilots have allowed the Company to penetrate many key
sectors, which the board has targeted within its sales plan. The Company has
achieved a number of sales that should act as launch pad to future significant
revenues in these key sectors.

The key sectors currently being targeted by the Company's sales and marketing
team are as follow:

·    Social Housing

·    Local Authorities

·    Military

·    Transport

·    Construction

·    Marine

·    Film & TV

·    Fire services

·    Modular ECO Buildings

The Company has secured some cornerstone agreements or in some cases made
sales within these key sectors which are expected to develop into large,
longer-term sales from these partnerships.

·    Beyond Surface Solutions is a specialist within the Marine and
Automobile sectors with stock now purchased and in place for Zenova FP, IP, IR
and Primer. A number of key trials are now underway with potential customers
from the motor industry for both Zenova FP and Zenova IP products to assist
with fire protection and insulation respectively.

·    SIG Plc is an experienced specialist within the construction sector
and one of the largest in the UK with a turnover of £2.2 billion and a
significant presence in Europe. SIG has also now placed its first order for
Zenova FP, IP, IR and Primer with assisted Zenova product training underway
with 24 branches

·    Robert Price, a builders merchants with 29 branches in South Wales,
has placed an order for Zenova products comprising FP, IP, IR and Primer.
Robert Price specialises in supplying innovation to the construction industry
and in particular offers key assistance in submitting Zenova products for
green and safety grant-funded schemes initiated by the Welsh Assembly.

·    Bells & Two Tones and Fire Service Group UK are specialist fire
service advisers within the Film and TV sector. Orders have now been placed
for Zenova FP and Zenova WB and the products have been utilised on film sets
with exceptional results and very positive feedback from the film sets'
producers and special effect teams.  This customer continues to order
products from the Company and has indicated that it will order significantly
more product in the coming months as a result of the feedback from the film
producers themselves.

Zenova has entered into a number of international sub-distributor agreements
in various territories globally including Australia, Spain, Germany, Austria
and Switzerland as well as Saudi Arabia and the USA. These contracts include
an annual commitment to purchase a minimum quantity by value of Zenova
products, as previously announced. This has grown more slowly than expected
and resulted in a low level of orders being placed to date. The Company
expects that this will increase in pace as the penetration of markets takes
place over time and anticipates that this international network will deliver
the revenues committed to as anticipated, albeit at a slower pace until
external market conditions improve.

The Company continues to identify and appoint international sub-distributors:

·    Ethmaar Investment Company has been approved as a sub-distributor in
Saudi Arabia for Zenova FP, IP, IR and Primer. Ethmaar is completing the
certification process required by the government in Saudi Arabia, following
which a first order is expected to be placed by the end of the year.

·    Omnis Panels LLC has been appointed as a sub-distributor within the
construction sector in the USA for Zenova FP, IP, IR and Primer. Omnis has
begun the task of building brand awareness in the USA with a number of trade
show events completed, generating significant interest.

The Board believes that Zenova is now positioned for a period of positive
turnover growth as the Company benefits from the hard-work and achievements
during the period.  The board believes that sales during the current year
have been impacted as sales cycles for new innovative safety critical products
have lengthened as a result of the broader trading environment. The board
therefore expects revenues it previously anticipated to be recorded in 2022 to
be pushed into the following financial year. Turnover for the period ended 30
November 2022 will therefore be below that previously anticipated.

The Company is committed to a programme of rigorous cost management and is
currently managing its budgets on a monthly basis at Board level. This is
coupled with a lower than budgeted manufacturing cost due to its outsourced
just in time manufacturing arrangements giving it flexibility, speed and
scalability which assists cashflow management. Loss for the year is broadly in
line with the board's expectation.

Zenova's cash balance at the end of October was £875,000 which the board
believes is sufficient to meet Zenova's current working capital requirements.

Tony Crawley, Chief Executive of Zenova Group PLC said: "The Company continues
to make encouraging progress during 2022 and whilst revenue generation has
been lower than expected to date, we are confident that the demand for Zenova
products will continue to grow, with revenues increasing accordingly.

The launch and first sale of the FX500 extinguisher is another significant
milestone for Zenova and will add a further quality product to our fire safety
range, benefiting our current sub-distributors and clients globally. The
Zenova team has conducted thorough testing and demos to perfect a quality high
performance product that extinguishes any type of fire.

Zenova is very proud to be supplying its product for use by  the military in
Ukraine, with confirmation that the FX500is highly effective in its
application in extinguishing all fires.

 

 

For further information please contact:

 

 Zenova Group PLC
 Tony Crawley, Chief Executive Officer Don Nicolson, Executive Chairman  Via Orana Corporate LLP: Anthony Eastman

                                                                         Tel: +44 20 3475 6834
 SPARK Advisory Partners Limited (Nominated Adviser)
 Matt Davis / Adam Dawes                                                 Tel: +44 20 3368 3550
 SI Capital Limited (Broker)                                             Tel: +44 1483 413 500

 Nick Emerson

About Zenova Group PLC:

 

The Group, through Zenova Ltd, is the holder of intellectual property that
underpins a suite of fire safety and temperature management products and
technology. The product range is applicable to industrial, commercial, and
residential markets. The Group's products include fire retardant paints,
insulating paints and render, fire extinguishing fluid and applications.
Through innovative development, and a refined formulation and development
process, Zenova provides industry leading solutions across a range of fire
protection and temperature management problems, comprising:

Zenova  (https://zenovagroup.com/products/zenova-fp/) FP
(https://zenovagroup.com/products/zenova-fp/)

A water-based fire-protection paint that prevents ignition and spread of fire.
It can be used in commercial, industrial, and domestic applications on variety
of materials, from wood to metal.

Zenova  (https://zenovagroup.com/products/zenova-fx/) FX
(https://zenovagroup.com/products/zenova-fx/)

Patent pending fire extinguisher filled with proprietary Zenova Fluid (Zenova
FXB) that extinguishes all types of fires, reduces chances of re-ignition,
works in cold (-15 ̊C) conditions, is non-toxic and does not produce harmful
by-products.

Zenova  (https://zenovagroup.com/products/zenova-ip/) IP
(https://zenovagroup.com/products/zenova-ip/)

Thermal insulation paint that creates a thermal barrier, provides thermal
reflection of sunrays and infrared radiation, anti-condensation, and
anti-mould properties. It can be applied to virtually any exterior or interior
material, regardless of the surface.

Zenova  (https://zenovagroup.com/products/zenova-ir/) IR
(https://zenovagroup.com/products/zenova-ir/)

Thermal insulation render to enhance the effectiveness of insulation by
creating a thermo shield. It fills all cavities and gaps regardless of
geometric shape and creates a vacuum - the most effective insulator.

ZENOVA  (https://zenovagroup.com/products/zenova-cs/) WB
(https://zenovagroup.com/products/zenova-cs/)

 

A wildfire barrier fluid (applied via spray wands or aerial drops), which
provides a virtual barrier where fire simply will not burn. Repeated tests on
a variety of extremely dry wildfire fuels (grasses, hays, brush) demonstrates
the incredible fire resistance Zenova WB provides, while remaining viable
after application for 30+ days in dry conditions.

 

The Group has achieved this without compromising the sustainability of natural
and economical resources, including personal health and safety, with
ecologically sound products.

Further information on the Group can be found at www.zenovagroup.com
(http://www.zenovagroup.com/)

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