TIDMLIFS
RNS Number : 9688U
LifeSafe Holdings PLC
29 November 2023
For immediate release 29 November 2023
LifeSafe Holdings plc
('LifeSafe', the 'Group' or the 'Company')
Trading Update
LifeSafe (AIM:LIFS), a fire safety technology business with
innovative fire extinguishing fluids and fire safety products,
today provides a trading update for the eleven months to date (the
'period'). The Group has continued to generate considerable sales
growth through its consumer channels in the period, with revenue of
approximately GBP5.4 million, 62 per cent ahead of the same period
last year, with one month of trading to go for the 2023 full year
('FY23').
This extraordinary sales growth has been achieved almost
exclusively through the Group's digital consumer channels in the UK
and US, which underlines the appeal of both the StaySafe 5-in-1 and
StaySafe All-in-1. The growth highlights the traction the LifeSafe
brand has achieved in the fire safety market since launching on
Amazon UK and following the Group's IPO last year. This bodes well
for the new products and fluids launching in 2024 into LifeSafe's
wholesale and industrial markets, with strategic partners such as
Wormald and QBE, as announced on 26 September 2023, in line with
the Group's long-term strategic plan.
The exceptional sales growth has been however impacted by recent
increases in the Group's costs of digital advertising and logistics
as the Company has scaled at pace, particularly in the US. As a
consequence, the Group has had to spend significantly more over
recent months than previously expected. With the conclusion of the
November 2023 sales period including Black Friday, the Group will
not attain monthly EBITDA profitability in Q4 2023 as previously
hoped. The Board guides that the FY23 LBITDA will be higher than
current market expectations with underlying LBITDA(1) expected to
be in the range of approximately GBP1.3 million to GBP1.5 million,
with revenue expected to be in the range of approximately GBP5.7
million to GBP5.9 million. Revenue growth for the period has also
been checked due to the unexpected underperformance of one small
digital marketing partner in the US, compared to revenue through
this relationship in 2022.
A programme of cost reduction has already been implemented, with
a particular focus on overheads and supply chain costs, alongside
changes to the marketing strategy. These actions, together with an
improved margin mix of increased wholesale and industrial sales,
which add to revenue without the level of marketing investment or
logistics costs inherent in the direct-to-consumer channel, give
the Board confidence that operating margins will be enhanced moving
forward.
The Group is significantly ahead of its strategic plan in the
development, testing and pipeline of its next generation of fluids
aimed at the wholesale and industrial sectors, which the Board
looks forward to announcing in due course. These strategic goals
are key drivers of long-term value creation for shareholders.
LifeSafe will provide a further trading update in January 2024
following the busy Christmas period.
(1) Underlying LBITDA represents loss for the period before
finance expense, tax, depreciation and amortisation, and
non-underlying items.
Dominic Berger, Chairman of LifeSafe, said:
"While we are disappointed with the impact of the unexpected
increased costs within our digital sales channel, the Company
continues to show strong sales growth this year, which is already
62 per cent ahead of 2022. This performance has come during a time
where our focus was to establish our brand in the market and drive
further top line growth in our digital channel, both of which we
have delivered. The diversification and development of new fluid
variants aimed at the higher margin industrial and wholesale
sectors is ahead of plan, notably in the fight against the threat
of fire events with lithium-ion batteries, and in our partnerships
with Wormald and QBE.
"We continue to invest in research and development to meet the
challenges of increased fire threats driven by climate change,
technology, the environment and legislation and we look forward to
being able to showcase our efforts in the near future. Our focus in
the short term is to leverage our greater understanding of our
digital channels and logistics, alongside the development of our
industrial and wholesale channels."
This announcement contains inside information for the purposes
of Article 7 of the UK version of Regulation (EU) No 596/2014 which
is part of UK law by virtue of the European Union (Withdrawal) Act
2018, as amended ('MAR'). Upon the publication of this announcement
via a Regulatory Information Service, this inside information is
now considered to be in the public domain.
The person responsible for arranging the release of this
announcement on behalf of the Company is Mike Stilwell, Chief
Financial Officer of the Company.
For further enquiries:
LifeSafe Holdings plc Via FTI Consulting
Dominic Berger, Chairman info@lifesafet echnologies .com
Neil Smith, Chief Executive Officer
Mike Stilwell, Chief Financial
Officer
WH Ireland Limited (Nominated Tel: +44 (0) 20 7220 1666
Adviser & Broker)
Chris Fielding
Darshan Patel
Isaac Hooper
FTI Consulting (Financial Communications) Tel: +44 (0) 20 3727 1000
Tom Hufton LifeSafe@fticonsulting.com
Harriet Jackson
Liam Gerrard
Notes to Editors
LifeSafe is a fire safety technology business that develops
eco-friendly, novel and innovative fire extinguishing fluids and
life-saving fire safety products. LifeSafe has developed a market
disrupting range of eco-friendly fire safety protection products; a
new patent-pending Thermal Runaway Fluid to combat lithium battery
fires by permanently extinguishing and preventing re-ignition, and
the StaySafe All-in-1, a handheld eco-friendly and fully recyclable
extinguisher which is verified to extinguish ten different types of
fire and the number one selling fire extinguisher on Amazon UK. L
ifeSafe is successfully creating new markets for the Group in fire
safety through its innovative technologies, products, digital
marketing and multi-channel sales; and is continuing to develop new
fluid derivations for applications in various industrial market
sectors.
LifeSafe was admitted to trading on AIM in July 2022 with the
ticker LIFS.
For further information please visit:
https://www.lifesafeholdingsplc.com .
LinkedIn:
https://www.linkedin.com/company/lifesafe-technologies
Twitter: https://twitter.com/LifesafeT
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END
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November 29, 2023 02:00 ET (07:00 GMT)
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