Update

RNS Number : 3600E

FireAngel Safety Technology Group

05 November 2020

 

5 November 2020

FireAngel Safety Technology Group plc  

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

Update

FireAngel (AIM: FA.), one of Europe's leading developers and suppliers of home safety products, provides the following update.

Trading

Since 29 September 2020, when the Company released its unaudited interim results for the six months ended 30 June 2020, trading conditions in the Company's markets have generally continued to improve.  October saw the highest revenue of any month so far this year by some margin, being 96 per cent. of the level generated in October 2019.  FireAngel's Trade sector continues to recover, with revenue in October 2020 being the highest in any month for almost three years. 

Legislation in Scotland has been a key driver of demand for FireAngel's Trade sector in 2019 and the year to date.  Whilst COVID-19 has dampened some of that demand, the Scottish Government has recently proposed a twelve-month extension for compliance to February 2022.  If, as expected, this extension is approved, demand will be spread over that period rather than the opportunity to supply being lost and allowing for additional installation opportunities to be found.

As in many industries, online performance has seen a notable step change and significant revenue growth has continued in online retail in the year to date compared with 2019.  FireAngel was the best-selling brand in Amazon UK's 'Smart Homes' category on Prime Day in October 2020, with revenue from sales to Amazon in the ten months to and including October 2020 being up by 20 per cent. compared with the same period last year, with growing momentum.

As previously announced, on 30 June 2020, being the Company's half year end, stock stood at £9.4 million, which was higher than required due to procurement decisions taken before the imposition of lockdown restrictions.  Stock at 31 October 2020 stood at approximately £8.0 million, validating the Board's expectations that stock levels would begin to fall as sales improved again.  However, the imposition this week of renewed COVID-19 restrictions, which may lead to further uncertainty, may risk stock levels increasing by the end of the year.

Uncertainty caused by UK Government policy and that of certain other countries continues to impact the Company's ability to accurately forecast future sales and, therefore, the Board does not provide guidance for the Company's 2020 full year performance.  The Board expects to provide an update in mid-January 2021 on the Company's 2020 full year performance.

Connected Homes

In June 2020, the Company announced that it had received a material initial purchase order for its first large-scale connected homes technology rollout for a large London Borough Council.  At the end of October 2020, some 3,500 devices were called off by the customer to cover 500 flats, the majority of which will be used in installations in four tower blocks expected to take place this month.  Whilst there remains some COVID-19 related uncertainty in relation to accessing each flat, the provision of fire safety services remains a permitted activity under current UK Government guidelines, mitigating the impact of lockdown restrictions.

The first ten tower blocks for installation of the Company's connected devices, including the four referred to above, have now been selected by this customer and, with detailed planning work having already been completed for several, these installations are expected to be largely complete by the end of 2020.  The number of flats in each tower block ranges from 65 to 100, with each flat typically requiring five alarms.

As previously announced, a customer paid-for trial covering two blocks of flats for a social housing landlord is expected to commence later this month, with up to 1,000 devices expected to be connected in that period as part of this trial.

Senior Management Appointments

The Company is pleased to announce that it has recently strengthened its senior management team by the appointment of Andy Horobin and Maria Ludlow as Group Quality Director and Head of Customer Support respectively.  Andy, who will be primarily responsible for the Company's product safety and quality standards, has previously held a number of senior operational management roles, including at Rolls Royce, and holds a post graduate degree in operations management.  Maria, who will lead a range of operational improvements across the business aimed at improving the customer experience, has an extensive track record of improving customer service in a number of businesses, including Orange, Wago UK and Geberit UK.

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   

 

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