AGM Statement

RNS Number : 5317P

FireAngel Safety Technology Group

21 June 2022

 

21 June 2022

FireAngel Safety Technology Group plc

('FireAngel', the 'Company' or the 'Group')

AGM Statement

FireAngel (AIM: FA.), a leading developer and supplier of home safety products, is holding its Annual General Meeting ('AGM') today at which John Conoley, its Executive Chairman, will make the following statement:

"The Company expects to deliver a first half performance to 30 June 2022 in line with the Board's expectations. Demand has remained higher than the Company's ability to supply and is expected to remain high during the remainder of 2022.

"In the first few months of this year, as expected, the Company continued to absorb additional costs due to inflation, which impacted margins. We began to see the impact of mitigation activity on the Company's gross margin performance in 2Q 2022, in line with the Board's expectations, and gross margin is expected to improve more strongly in 3Q onwards. Further targeted price rises of the Company's products are already scheduled for later this year as additional protection against rising input prices. While inflation was in part driven by component shortages, those components have been easier to procure as 2Q has progressed, which has most recently enabled the Company to rebuild volume production of previously restricted higher margin products.

"Fortunately, Covid-19 challenges have barely impacted the Company so far this year, and the very difficult supply situation, previously highlighted, has eased greatly. The Company has identified enough components to be able to reach its revenue goals this year. Foreign exchange, especially the relationship between the US dollar and the British pound, has become more volatile than anticipated. Despite this, and the unprecedented challenges the Company has faced, the Board still expects the Company to meet its market expectations for the year ending 31 December 2022. The Board continues to monitor the macro situation and is ready to respond as appropriate. The Company has experienced no direct impacts from the Ukraine situation to date and does not directly source any materials from that country.

"The fundraising announced in April 2021 provided the Company with the necessary funds to deliver its strategic goals and the net proceeds have laid the foundation for the Company to return to profitability and positive cash generation. As announced on 20 June 2022, the standby letter of credit secured through our bank, HSBC UK Bank plc, will assist the Company in securing longer term component procurement than was previously required, thereby easing the credit relationship between certain suppliers and the Company, and ultimately offering further certainty on production volumes. As previously announced, net debt is expected to be materially lower than expected at the half year, although net debt levels will converge with expectations again as 2H progresses.

"FireAngel's compelling proposition to protect and save lives with innovative home safety technology remains strong and the Group is well positioned for future growth. Legislative and societal direction continues to support demand for the Company's products."

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) Rick Thompson/Alex Bond Houston (Financial PR) Kate Hoare/Joe Burgess	020 7496 3000 020 4529 0549

Notes to Editors

About FireAngel Safety Technology Group plc

FireAngel's mission is to protect and save lives by making innovative, 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

 

END

 

 

AGMSEAFISEESEFM