FireAngel Safety Technology Group AGM Statement and Major Connected Home Order (4282R)
June 30 2020 - 1:00AM
UK Regulatory
TIDMFA.
RNS Number : 4282R
FireAngel Safety Technology Group
30 June 2020
30 June 2020
FireAngel Safety Technology Group plc
('FireAngel', the 'Group' or the 'Company')
AGM statement
and
Major connected home order
FireAngel (AIM: FA.), one of Europe's leading developers and
suppliers of home safety products, is holding its Annual General
Meeting ('AGM') today. In order to comply with the UK Government's
COVID-19 measures which restricts, amongst other things, public
gatherings of people, the AGM is being convened as a 'closed
meeting' with a quorum of two and other shareholders will not be
permitted entry on the grounds of safety.
The Company provides the following statement ahead of the
AGM:
Revenue for the six months ending 30 June 2020 is expected to be
over 70% of the Board's pre-COVID-19 budget performance. As
previously announced, this reflects the short-term impact of the
unprecedented and wide-ranging measures the UK and international
governments have taken to combat the spread of the virus.
Whilst the impact of COVID-19 over the period as a whole has
been material, June has seen demand returning which led to the
Company's sales team returning from furlough in the second week of
the month. Retail sales in June are expected to be ahead of last
year and pricing enquiries in our higher-margin sectors have
increased markedly, with real demand now expected to return across
July and August. The recovery of sales in higher-margin sectors
will restore the momentum of the Board's self-help gross margin
improvement plan which, given its link to sales levels, has been
similarly held back by lockdown restrictions. This plan, allied to
an expected improvement in margin mix, still remains central to the
Company's improved performance towards the end of 2020 and markedly
so beyond.
The temporary reduction in sales has caused a short-term
increase in stock levels. The Company has mitigated the
consequential impact of higher working capital by securing a loan
of GBP3.2 million through the Coronavirus Large Business
Interruption Loan Scheme, as announced on 22 June 2020. Together
with the net proceeds of the equity fundraising received in April
2020, this further strengthens the Company's financial
position.
Further planned changes have been made to the Board's
composition to provide it with the skills and experience required
to assist in guiding the Company's transition to a connected homes
technology provider. We hope to announce shortly the appointment of
a new Non-Executive Director with a track record of maximising the
types of opportunity with which the Company is currently
presented.
The Board continues to believe that the medium and long-term
prospects for the Company's unique technology are strong. It is
delighted that the first material purchase order for its connected
technology has been received, details of which are set out below,
which it believes is a significant validation of FireAngel's
connected proposition.
The Board has taken a number of actions to minimise the impact
of COVID-19 on the Company. It continues to closely monitor the
impact of ongoing restrictions and will react appropriately to
emerging events to protect the Company's staff, customers and core
business.
A further update on the outturn of the first half will be
provided in late July 2020.
Major connected home order
Significant progress has been made with the Company's first
large-scale connected homes technology rollout. A large London
Borough Council, with which the Company has been in discussions
since before the onset of COVID-19, has placed an initial purchase
order in excess of GBP1.0 million with its chosen electrical
contractor partner for the Company's connected home technology. A
corresponding purchase order has been placed with the Company which
is expected to be called off over the twelve months to July 2021.
The order represents the first phase of the Council's planned
rollout of FireAngel's connected homes technology. This is a
material commitment to the Company's connected ten-year hardware,
which is expected to be followed in due course by a software
licence agreement between the Council and the Company, comprising
an element of recurring revenue, required to realise the full
connected capabilities and compelling benefits of the solution.
The Board believes that this is one of the largest connected
home 'internet of things' rollouts in the UK. While other
pre-existing commercial opportunities continue to be progressed,
commitments have been received for other new connected trials
expected to take place in Q3 2020. New enquiries from social
housing providers have been received over the lockdown period and
we expect the momentum of the first part of 2020 to return after
the summer.
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, save and improve our
customers' lives by making innovative, leading-edge technology
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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END
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