FireAngel Safety Technology Group Trading Update (6624M)
25 January 2021 - 6:00PM
UK Regulatory
TIDMFA.
RNS Number : 6624M
FireAngel Safety Technology Group
25 January 2021
25 January 2021
FireAngel Safety Technology Group plc
('FireAngel', the 'Group' or the 'Company')
Trading update
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 f or the Year are expected to be approximately GBP39.9
million (2019: GBP45.5 million). Stock at 31 December 2020 stood at
approximately GBP6.6 million (2019: GBP6.3 million), significantly
reduced from GBP9.4 million at 30 June 2020, the Company's half
year end.
Net debt, before lease obligations, at 31 December 2020 was
GBP3.7 million (31 December 2019: net debt GBP4.9 million) and
comprised cash balances of GBP1.4 million, invoice discounting
drawdowns of GBP2.5 million and a Coronavirus Large Business
Interruption Loan Scheme ("CLBILS") loan of GBP2.6 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
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