TIDMFA.
RNS Number : 5231U
FireAngel Safety Technology Group
30 July 2020
30 July 2020
FireAngel Safety Technology Group plc
('FireAngel', the 'Group' or the 'Company')
Trading Update and Directorate Change
FireAngel (AIM: FA.), one of Europe's leading developers and
suppliers of home safety products, provides the following trading
update for the six months ended 30 June 2020 ('H1 2020' or the
'period') and announces the appointment of Glenn Collinson as a
Non-Executive Director of the Company with effect from 1 August
2020.
Trading Update
The Company expects to report H1 2020 sales of approximately
GBP16.5 million (H1 2019: GBP20.7 million) and an underlying
operating loss of approximately GBP2.7 million (H1 2019: loss of
GBP1.7 million). Within this result, the charge for non-cash
depreciation and amortisation amounts to GBP1.9 million (H1 2019:
GBP1.7 million). In light of the impact of COVID-19, the Board
believes it has taken appropriate actions to protect the Company,
its employees and customers. Given the extraordinary global events
faced during the period, the Board considers the expected result
for H1 2020 to be satisfactory and is encouraged by the strong
start to the year made by the Company before domestic and
international lockdown restrictions took hold.
As detailed in the Company's AGM statement released on 30 June
2020, revenue for the period is over 70% of the Board's
pre-COVID-19 budgeted performance reflecting the short-term impact
of the unprecedented and wide-ranging measures which the UK and
international governments have taken to combat the spread of the
virus. This sales reduction has impacted the operating result after
an encouraging first two months of 2020 for both revenue and
margin.
Sales have been improving as a percentage of the Board's
pre-COVID-19 budget since May 2020 with performance in July 2020
expected to be in line with the revenue recorded in July 2019. Both
Retail and Trade sales in the month are expected to be higher than
in July 2019 illustrating a return to more normal patterns of
customer demand behaviour which the Board anticipates will
continue.
As previously announced, the reduction in sales in the period
has caused a short-term increase in the Group's stock levels which
stood at approximately GBP9.4 million at 30 June 2020 (30 June
2019: GBP8.5 million; 31 December 2019: GBP6.3 million). The Board
has adjusted orders for new stock and plans to sell through the
excess stock position in the second half of 2020.
At 30 June 2020, the Group had GBP1.1 million of cash and GBP2.5
million of debt through its invoice discounting facility ("ID") (30
June 2019: GBP1.5 million of cash and GBP3.2 million debt via ID;
31 December 2019: GBP2.1 million of cash and GBP7.0 million debt
via ID) following the Company's successful equity fundraising
announced on 23 March 2020. To further strengthen its balance
sheet, as announced on 22 June 2020, the Company secured a GBP3.2
million loan under the Coronavirus Large Business Interruption Loan
Scheme, which remained undrawn at the period end.
Most significantly, the Board was pleased to announce on 30 June
2020 that a material initial purchase order in excess of GBP1.0
million had been received for the Company's first large-scale
connected homes technology rollout. Training for installers is
scheduled to take place over the next two weeks with first
installations expected in August 2020. The Board believes that this
will be one of the largest connected home 'internet of things'
rollouts in the UK. Trials of the Company's connected home
technology are now complete with two large social housing landlords
with new trials for three other significant opportunities due to
commence towards the end of the summer and in early 2021. Although
some momentum has inevitably been lost due to the impact of
COVID-19, the fundamental benefits of FireAngel's connected
proposition remain unaltered. The Board believes that the Company's
remote monitoring technology will be even more attractive to
customers in light of the restricted access issues experienced by
landlords during the current crisis.
The Board will provide a further update on trading and prospects
in its Half Year Report expected to be released in late September
2020.
Directorate Change
The Company is pleased to announce the appointment of
electronics engineer and serial entrepreneur Glenn Collinson as an
independent Non-Executive Director with effect from 1 August 2020.
Consequently, as announced on 22 June 2020, John Shepherd,
Non-Executive Director of the Company, who, as Chairman of the
Company's Nominations Committee worked on the search for a new
non-executive director, will step down from the Board with effect
from 1 August 2020.
Mr. Collinson started his career at Racal and worked for
Motorola and Texas Instruments before co-founding Cambridge Silicon
Radio in 1998. There he served as an executive director and helped
grow the company from a concept to a $3 billion market
capitalisation entity in 2006 (as CSR Plc) and one of the biggest
players in the Bluetooth market. Since leaving CSR in 2007, he has
held a number of non-executive directorships in UK and French
companies - both public and private - that specialise in
technology. He is a member of the Institute of Engineering and
Technology and holds an MSc in electronics as well as an MBA from
Cranfield University. Further information on Mr Collinson in
accordance with paragraph (g) of Schedule Two of the AIM Rules for
Companies is set out below.
Employee share-matching incentive scheme
Further to the Company's announcement on 27 May 2020, the
Board's Remuneration Committee wishes to clarify that all employees
of the Company are eligible to participate in the employee
share-matching incentive scheme, subject to the discretion of the
Remuneration Committee.
John Conoley, Executive Chairman of FireAngel, commented: "The
actions we have taken over the last five months have protected the
Company and helped mitigate the impact of COVID-19 on the results
for the period. We are encouraged by the sales performance in July
2020 and remain focussed on restoring the momentum we had at the
beginning of 2020. Glenn joins the FireAngel Board at an incredibly
exciting time and we look forward to benefiting from his years of
experience in helping to exploit the Company's investment in
R&D, the start line for which has recently been crossed. The
FireAngel Board has been extensively reshaped over the last two
years and now has the skills and experience to maximise the
opportunities ahead."
Regulatory disclosures (in accordance with Rule 17 and Schedule
Two paragraph (g) of the AIM Rules for Companies)
Save for the information set out above and below, there are no
further disclosures to be made in accordance with Rule 17, Schedule
Two (g) of the AIM Rules for Companies in respect of the
appointment of Glenn Collinson, aged 57. Mr Collinson does not hold
an interest in the Company's share capital.
Current Directorships
Aquis Exchange Europe S.A.S.
Aquis Stock Exchange Limited
Glenn Collinson Consulting Limited
PureLiFi Limited
SDL plc
Vsora S.A.S.
Past Directorships (within 5 Years)
Aquis Exchange plc
Blu Wireless Technology Limited
EMA EBT Limited
European Microelectronics Academy Employee Benefits Trust
Inside Secure S.A.
Microemissive Displays Group plc, a company of which Glenn
Collinson was a director from 7 April 2008 until it was placed into
administration on 25 November 2008, underwent a creditors'
voluntary liquidation on 9 November 2009, prior to being dissolved
on 9 May 2016. There was no shortfall to creditors.
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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END
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