TIDMFA.
RNS Number : 0448A
FireAngel Safety Technology Group
31 January 2022
31 January 2022
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 for the year ended 31
December 2021 (the "Year" or "FY21"). The figures set out in this
announcement are subject to audit.
Further to its announcement released on 20 December 2021, the
Company confirms that sales for the Year are expected to show an
improvement over 2020 of more than 7 per cent. to GBP42.8 million
(2020: GBP39.9 million). Underlying Loss Before Tax ("LBT")
improved significantly to an adjusted LBT of GBP3.8 million (2020:
adjusted LBT GBP5.7 million), in line with market expectations,
with a marked improvement in adjusted Loss Before Interest Tax
Depreciation and Amortisation ("LBITDA") to GBP0.3 million (2020:
LBITDA GBP1.2 million). The adjusted gross margin for the Year
improved strongly to 23.1% (2020: 19.8%). Stock at 31 December 2021
stood at approximately GBP3.7 million (2020: GBP6.6 million).
In H1 2021, the Group raised GBP9.8 million by way of a placing
and open offer to support its strategic priorities following the
disruption caused in 2020 by COVID-19. While progress was made in
each of Revenue, Gross Margin and Operating Profit in FY21, each of
these was suppressed by the global supply chain crisis experienced
throughout the Year and particularly in H2. The crisis impacted
production due to component shortages, creating shipping and
fulfilment delays and driving inflation. An easing of the situation
is already evident in early 2022.
Net cash before lease obligations was GBP0.1 million at 31
December 2021 (2020: net debt GBP3.7 million) and comprised cash
balances of GBP3.3 million and a CBILS loan of GBP3.2 million. The
loan has a term of 6 years from March 2021 with the first year
being free of capital repayments and payments thereafter made
monthly over the remainder of the term . The Company has an invoice
discounting facility which at the year-end was undrawn.
In H2 2021, the Company was focused on reviewing its supply
chain strategy considering the challenges posed to timely supply
and input costs by the well documented global issues. Component
availability is now planned out into 2023 and the Company has
locked in most long-distance shipping rates and timings for 2022 to
deliver greater certainty. A full review of the Company's pricing,
competition and channel structure was conducted in H2 2021 and the
full impact of the consequent and marked price rises is expected to
benefit the Company from early Q2 2022.
As part of its strategy to boost margins further, the Company
will launch several entry level products beginning in late Q1 2022.
This is expected to be margin enhancing in 2022. This initiative
was commenced in 2020, is on time and within budget for delivery.
This newer product set is, to date, unaffected by component
issues.
During December 2021, the Company successfully completed the
fully funded Research Phase 1 of its agreement with Techem Energy
Services GmbH ("Techem"), one of the leading service providers for
green and smart buildings. Techem's focus is on energy efficiency
along the entire real estate value chain.
Phase 2, the actual development of a new generation smoke alarm
with additional functions and sensors, has begun. Techem is funding
a co-operative project with FireAngel to develop the alarm over a
period expected to last until late 2024. Detailed commercial
discussions are underway, including the selection of potential
manufacturing partners, and are expected to be concluded
shortly.
John Conoley, Executive Chairman of FireAngel, commented:
"The Board is satisfied with the Company's performance in what
was a particularly tough year. Whilst the business faced external
challenges, particularly around global supply chain issues, we
continued to make strong progress against our strategic priorities.
Particularly pleasing is the continued improvement in gross margin,
driven mainly by management action and focus. Of longer-term value
and huge significance, is the relationship with Techem. This
relationship has progressed well and is expected to continue to do
so.
" While we are already seeing an easing of supply chain
challenges, there may still be some issues during this year,
especially in Q1 2022. The Board will continue to monitor these
developments closely. From Q2 2022, the Company's existing
strategy, combined with new pricing and supply chain measures, will
offer strong validation of the margin improvement opportunity.
"Our proposition to protect and save lives with innovative,
cutting-edge home safety technology remains compelling, while our
strategic ambition to achieve this through margin improvement and a
focus on investing in Connected Homes technology is unchanged. We
look forward to making further progress against our priorities in
FY 2022."
The Company expects to announce its audited final results for
the year ended 31 December 2021 in late March 2022.
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) 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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