TIDMFA.
RNS Number : 7363F
FireAngel Safety Technology Group
20 July 2021
20 July 2021
FireAngel Safety Technology Group plc
('FireAngel', the 'Group' or the 'Company')
Trading Update
FireAngel (AIM: FA.), one of Europe's leading developers and
suppliers of home safety products, provides the following trading
update for the six months ended 30 June 2021 ('H1 2021' or 'the
period').
Trading
The Board of FireAngel is pleased with the progress made in H1
2021, with the Company reporting improved performance and sales
growth in-line with the Board's expectations. Sales are expected to
be materially ahead of the prior year period at approximately
GBP22.3 million (H1 2020: GBP16.5 million) with a materially
reduced operating loss* of approximately GBP1.3 million (H1 2020:
loss of GBP2.7 million). The Board sees this as a strong recovery
from last year with a return to a positive EBITDA* of GBP0.3
million in the period (H1 2020: LBITDA GBP0.8 million). While
COVID-19 restrictions combined with ongoing challenges in global
supply chains reduced the ability to exploit fully the growing
demand for FireAngel's connected products, the Board is pleased to
have remained on track.
The Group has continued to deliver against its strategy to
expand gross margins, which increased to approximately 24% in H1
2021 (H1 2020: 22.2%, H1 2019: 19%). This was driven by a higher
sales mix of the Company's connected products and planned
operational improvements which attract wider margins.
At 30 June 2021, following the Company's successful equity
fundraising announced on 30 April 2021, the Group had GBP5.8
million of cash and GBP3.6 million of debt (excluding IFRS16 lease
liabilities).
Connected homes update
Further to its announcement on 7 April 2021 of a significant
partnership with a German energy and efficiency service provider to
develop a new generation alarm mainly for the German market,
FireAngel has successfully scaled up its activities to meet this
opportunity, with the first phase currently on track to complete in
Q3 2021 as planned. Billing commenced in Q2.
The Company's partnership with Ealing Council is now building
momentum due principally to the relaxation of COVID-19 restrictions
and approximately 4,000 devices have now been installed. The
rollout of hardware and connectivity will continue during the
remainder of this year and the council is finalising a plan to
accelerate the rollout in this quarter to those properties
previously delayed due to earlier COVID-19 restrictions. The
project, and other smaller scale implementations, will also provide
FireAngel with useful case studies which demonstrate the improved
safety and cost-savings as a result of using its technology.
Consumer interest and uptake in FireAngel's connected products
has continued to grow, with over 16,000 thousand devices now
registered on its consumer mobile phone application, a marked
increase from 1,400 devices at 1 July 2020.
Value chain update
The Group's strategy to improve its value chain continued to
progress in the period, with some operational enhancements already
delivering value. There is also a project underway to source entry
level products, uneconomic to design and produce in Europe, from an
existing Chinese partner, which has progressed to certification
stage and the Board expects this project to be margin enhancing in
2022.
Deployment of proceeds from April equity raise
The net proceeds of the fundraising announced in April 2021 have
been used to strengthen the balance sheet whilst the Group
continues its commitment to focus on product development.
Utilisation of the warranty provision is tracking to forecasted
levels. Although global supply chain challenges have frustrated the
planned Q2 2021 increase in inventory, we now expect to build
inventory across H2 2021 to meet expected growth.
John Conoley, Executive Chairman of FireAngel, commented: "The
Board is pleased that the Company has remained on track and made
good progress against our strategy, despite being partially
restrained by recent supply chain issues and some continuing
COVID-19 restrictions. We are working on a range of mitigations to
protect ourselves as much as possible against similar potential
supply chain challenges going forward.
"The Board is satisfied that the execution of the many elements
within the Company's own control have gone to plan and are
beginning to benefit FireAngel's financial performance. It is
promising to see that market demand, especially for our connected
products, remains strong and is growing."
The Board will provide a further update on trading and prospects
in its unaudited interim results for the period which are expected
to be released in late September 2021.
*Operating loss and EBITDA in H1 2021 are stated before
unaudited share based payment charge GBP0.1 million (H1 2020:
GBP0.2 million)
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) 020 7408 4050
Tom Griffiths/David Coaten
Singer Capital Markets (Joint broker) 0207 496 3000
Rick Thompson/Alex Bond
Houston (Financial PR)
Kate Hoare/Laura Stewart 0204 529 0549
Notes to Editors
About FireAngel Safety Technology Group plc
FireAngel's mission is to protect and save lives by making
innovative, leading-edge 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
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END
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