FireAngel Safety Technology Group plc
(‘FireAngel’, the ‘Group’ or the ‘Company’)
FireAngel (AIM: FA.), a leading developer and supplier of home safety products, announces a trading update ahead of the release of its audited final results for the year ended 31 December 2020 (the ‘Year’). The figures set out in this announcement are subject to audit.
The Group entered the Year with strong momentum against its strategic priorities. Whilst the operational and market impact of Covid-19 inevitably dominated the Year, resulting in the Group reporting reduced sales and a delay in making substantive progress on its Connected Homes strategy, the recovery in the Group’s markets in the second half of the Year and subsequent positive trading trajectory has been encouraging.
Sales for the Year are expected to be approximately £39.9 million (2019: £45.5 million). Stock at 31 December 2020 stood at approximately £6.6 million (2019: £6.3 million), significantly reduced from £9.4 million at 30 June 2020, the Company’s half year end.
Net debt, before lease obligations, at 31 December 2020 was £3.7 million (31 December 2019: net debt £4.9 million) and comprised cash balances of £1.4 million, invoice discounting drawdowns of £2.5 million and a Coronavirus Large Business Interruption Loan Scheme (“CLBILS”) loan of £2.6 million. In December 2020, the Company successfully negotiated with its bank a revised repayment schedule due under the CLBILS loan in order to aid cashflows due to the continuing uncertainties referred to in previous announcements caused by Covid-19 and their impact on the business which are continuing into 2021. The Company has also applied for an increased CLBILS loan in order to provide further headroom and to support the revenue growth expected this year. A further announcement will be made in due course.
As previously announced, the Company expects to announce its audited final results for the year ended 31 December 2020 in late March 2021 when it will provide a further update on current trading and outlook for the year.
John Conoley, Executive Chairman of FireAngel, commented:
“The impact of Covid-19 held the Company back from achieving what would almost certainly have been a significantly improved performance in 2020. The great progress made towards the end of 2019 and in the first months of the 2020 before the pandemic struck augured well for the Year. Combined with the growing momentum of our Connected Homes pipeline and sales-driven gross margin improvement plan, 2020 would have seen a material improvement in both revenue and profitability.”
“Notwithstanding the enhanced lockdowns in the various markets we sell in, trading in January is in line with the Board’s expectations. Despite the obvious Covid-19 related uncertainty, the Board is targeting improved performance and sales growth in 2021 versus 2020.”
“Our compelling proposition to protect and save lives with innovative, cutting-edge home safety technology remains intact. Our strategic ambition to achieve this through margin improvement and a focus on investing in Connected Homes technology remains unaltered. We look forward to making further progress against our priorities in FY21.”
For further information, please contact:
FireAngel Safety Technology Group plc 024 7771 7700
John Conoley, Executive Chairman
Jon Kempster, Interim Chief Finance Officer
Shore Capital (Nominated adviser and broker) 020 7408 4050
Tom Griffiths/David Coaten
Houston (Financial PR) 0204 529 0549
Kate Hoare/Laura Stewart
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