Trading Update and Directorate Change
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 2020 (‘H1 2020’ or the ‘period’) and announces the appointment of Glenn Collinson as a Non-Executive Director of the Company with effect from 1 August 2020.
The Company expects to report H1 2020 sales of approximately £16.5 million (H1 2019: £20.7 million) and an underlying operating loss of approximately £2.7 million (H1 2019: loss of £1.7 million). Within this result, the charge for non-cash depreciation and amortisation amounts to £1.9 million (H1 2019: £1.7 million). In light of the impact of COVID-19, the Board believes it has taken appropriate actions to protect the Company, its employees and customers. Given the extraordinary global events faced during the period, the Board considers the expected result for H1 2020 to be satisfactory and is encouraged by the strong start to the year made by the Company before domestic and international lockdown restrictions took hold.
As detailed in the Company’s AGM statement released on 30 June 2020, revenue for the period is over 70% of the Board’s pre-COVID-19 budgeted performance reflecting the short-term impact of the unprecedented and wide-ranging measures which the UK and international governments have taken to combat the spread of the virus. This sales reduction has impacted the operating result after an encouraging first two months of 2020 for both revenue and margin.
Sales have been improving as a percentage of the Board’s pre-COVID-19 budget since May 2020 with performance in July 2020 expected to be in line with the revenue recorded in July 2019. Both Retail and Trade sales in the month are expected to be higher than in July 2019 illustrating a return to more normal patterns of customer demand behaviour which the Board anticipates will continue.
As previously announced, the reduction in sales in the period has caused a short-term increase in the Group’s stock levels which stood at approximately £9.4 million at 30 June 2020 (30 June 2019: £8.5 million; 31 December 2019: £6.3 million). The Board has adjusted orders for new stock and plans to sell through the excess stock position in the second half of 2020.
At 30 June 2020, the Group had £1.1 million of cash and £2.5 million of debt through its invoice discounting facility (“ID”) (30 June 2019: £1.5 million of cash and £3.2 million debt via ID; 31 December 2019: £2.1 million of cash and £7.0 million debt via ID) following the Company’s successful equity fundraising announced on 23 March 2020. To further strengthen its balance sheet, as announced on 22 June 2020, the Company secured a £3.2 million loan under the Coronavirus Large Business Interruption Loan Scheme, which remained undrawn at the period end.
Most significantly, the Board was pleased to announce on 30 June 2020 that a material initial purchase order in excess of £1.0 million had been received for the Company’s first large-scale connected homes technology rollout. Training for installers is scheduled to take place over the next two weeks with first installations expected in August 2020. The Board believes that this will be one of the largest connected home ‘internet of things’ rollouts in the UK. Trials of the Company’s connected home technology are now complete with two large social housing landlords with new trials for three other significant opportunities due to commence towards the end of the summer and in early 2021. Although some momentum has inevitably been lost due to the impact of COVID-19, the fundamental benefits of FireAngel’s connected proposition remain unaltered. The Board believes that the Company’s remote monitoring technology will be even more attractive to customers in light of the restricted access issues experienced by landlords during the current crisis.
The Board will provide a further update on trading and prospects in its Half Year Report expected to be released in late September 2020.
The Company is pleased to announce the appointment of electronics engineer and serial entrepreneur Glenn Collinson as an independent Non-Executive Director with effect from 1 August 2020. Consequently, as announced on 22 June 2020, John Shepherd, Non-Executive Director of the Company, who, as Chairman of the Company’s Nominations Committee worked on the search for a new non-executive director, will step down from the Board with effect from 1 August 2020.
Mr. Collinson started his career at Racal and worked for Motorola and Texas Instruments before co-founding Cambridge Silicon Radio in 1998. There he served as an executive director and helped grow the company from a concept to a $3 billion market capitalisation entity in 2006 (as CSR Plc) and one of the biggest players in the Bluetooth market. Since leaving CSR in 2007, he has held a number of non-executive directorships in UK and French companies – both public and private – that specialise in technology. He is a member of the Institute of Engineering and Technology and holds an MSc in electronics as well as an MBA from Cranfield University. Further information on Mr Collinson in accordance with paragraph (g) of Schedule Two of the AIM Rules for Companies is set out below.
Employee share-matching incentive scheme
Further to the Company’s announcement on 27 May 2020, the Board’s Remuneration Committee wishes to clarify that all employees of the Company are eligible to participate in the employee share-matching incentive scheme, subject to the discretion of the Remuneration Committee.
John Conoley, Executive Chairman of FireAngel, commented: “The actions we have taken over the last five months have protected the Company and helped mitigate the impact of COVID-19 on the results for the period. We are encouraged by the sales performance in July 2020 and remain focussed on restoring the momentum we had at the beginning of 2020. Glenn joins the FireAngel Board at an incredibly exciting time and we look forward to benefiting from his years of experience in helping to exploit the Company’s investment in R&D, the start line for which has recently been crossed. The FireAngel Board has been extensively reshaped over the last two years and now has the skills and experience to maximise the opportunities ahead.”
Regulatory disclosures (in accordance with Rule 17 and Schedule Two paragraph (g) of the AIM Rules for Companies)
Save for the information set out above and below, there are no further disclosures to be made in accordance with Rule 17, Schedule Two (g) of the AIM Rules for Companies in respect of the appointment of Glenn Collinson, aged 57. Mr Collinson does not hold an interest in the Company’s share capital.
Aquis Exchange Europe S.A.S.
Aquis Stock Exchange Limited
Glenn Collinson Consulting Limited
Past Directorships (within 5 Years)
Aquis Exchange plc
Blu Wireless Technology Limited
EMA EBT Limited
European Microelectronics Academy Employee Benefits Trust
Inside Secure S.A.
Microemissive Displays Group plc, a company of which Glenn Collinson was a director from 7 April 2008 until it was placed into administration on 25 November 2008, underwent a creditors’ voluntary liquidation on 9 November 2009, prior to being dissolved on 9 May 2016. There was no shortfall to creditors.
For further information, please contact:
|FireAngel Safety Technology Group plc
|024 7771 7700
|John Conoley, Executive Chairman
|Mike Stilwell, Group Finance Director
Shore Capital (Nominated adviser and broker)
020 7408 4050
|Tom Griffiths/David Coaten
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