TIDMFA.

RNS Number : 5928U

FireAngel Safety Technology Group

07 April 2021

7 April 2021

FireAngel Safety Technology Group plc

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

Significant long term partnership signed to develop new generation smoke alarm

FireAngel (AIM: FA.), one of Europe's leading developers and suppliers of home safety products, announces that it has signed a long term partnership agreement with a German energy and efficiency service provider for the real estate sector (the "Partner") to provide a fully funded research and development programme for a new generation smoke alarm. The Partner which was founded nearly 70 years ago provides services to approximately 12 million apartments worldwide and in its most recent financial period, being the six months ended 30 September 2020, had turnover of approximately EUR 317 million.

Following a competitive tender process and almost 18 months' co-operation between the parties, including extensive customer-led research, FireAngel has agreed to provide the Partner with a new 10 year connected smoke alarm based upon FireAngel's Gen6 platform. This next generation alarm will offer additional, innovative safety and environmental features to meet the increased demands of landlords as well as tenants. Both parties will have the right to use any foreground IP resulting from development of the new smoke alarm.

Pursuant to the terms of the partnership agreement, the Partner will fund the development phase of the next generation smoke alarm. In addition, FireAngel will receive a fee of GBP1.4 million for use of its background IP during the development phase. Thereafter, once production of the next generation smoke alarm has commenced, a royalty fee per product will be payable to FireAngel with a multi-million volume fee agreed for the initial 30 months. Manufacturing of the next generation smoke alarm is expected to commence in early 2024. It is forecast that 7 million new devices will be produced with a minimum of 3.5 million expected to be produced in the first 2.5 years.

It is anticipated that FireAngel will be responsible for production of the new smoke alarm and that a manufacturing partner will be selected jointly during the development phase. It is expected that FireAngel will receive a minimum 3 year manufacturing commitment and will receive a manufacturing and support fee payable for each device delivered.

John Conoley, Executive Chairman of FireAngel, commented: " This is the most significant development for FireAngel for several years and is expected to be transformational for the Group. The directors estimate that, during the life of the partnership, the Company should earn up to EUR21 million in royalty, management and support fees. The Company's long-standing commitment to R&D, combined with the adoption of development processes from the IT world, have contributed to us signing this partnership which will be materially cash positive and contribute financially to the Company for the long term. Finally, it reflects our aim to spend more of our time and resource on higher value activities. The customer has acted like a true partner throughout this long process."

For further information, please contact:

 
 FireAngel Safety Technology 
  Group plc                           024 7771 7700 
 John Conoley, Executive Chairman 
 Jon Kempster, Interim Chief 
  Finance Officer 
 
 Shore Capital (Nominated adviser 
  and broker)                         020 7408 4050 
 Tom Griffiths/David Coaten 
 
 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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

AGRUPUPPCUPGPUQ

(END) Dow Jones Newswires

April 07, 2021 02:00 ET (06:00 GMT)