FireAngel Safety Technology Group Trading Update (1085W)
09 Dicembre 2019 - 08:00AM
UK Regulatory
TIDMFA.
RNS Number : 1085W
FireAngel Safety Technology Group
09 December 2019
9 December 2019
FireAngel Safety Technology Group plc
('FireAngel', the 'Group' or the 'Company')
Trading update
FireAngel (AIM: FA.), one of Europe's leading developers and
suppliers of home safety products, announces an update on trading
for the year ending 31 December 2019.
Revenue for the year ending 31 December 2019 is now expected to
be below previous market expectations in the range GBP44.5 million
to GBP45.0 million and the Company's underlying operating result,
before the impact of the change to straight line amortisation
previously described in the Company's interim results announcement
released on 24 September 2019, is expected to be a loss in the
range GBP2.6 million to GBP2.9 million. This is based on exchange
rates as at the date of this announcement.
Expected sales growth in 2019 of approximately 20% has stressed
the Company's processes from production right through to customer
fulfilment. This has had the effect of repeatedly shaving small
amounts of both revenue and margin from the full year achievement.
In addition, sales mix in the final quarter of 2019 is expected to
be significantly different to that previously anticipated, with
lower revenue from European and Trade sales being only partially
mitigated by lower margin business in the Company's Retail and Fire
& Rescue Services business units.
To meet year-end demand for certain of its products, the Company
expects to incur additional costs in reworking certain stock lines
for particular markets and sectors. This has, in some cases, also
required more costly air freight charges to be incurred. The
strengthening of sterling against the US dollar since September
2019 has increased the committed sterling cost of forward contracts
entered into in accordance with the Company's policy to hedge
future US-dollar purchase requirements. This mark-to-market
increase in sterling cost is required to be recognised in the
results for the year ending 31 December 2019 and, to the extent
that this has not been mitigated by the retranslation of other
US-dollar denominated monetary items, has detrimentally impacted
the forecast result for the year.
Through the detailed work carried out during the course of this
year in reviewing processes and procedures across the Company, it
is clear that the opportunity to drive gross margin recovery in the
short, medium and long term remains significant.
To allow actions from this margin recovery plan to gain
traction, the Board proposes to leave its 2021 market guidance
intact, but is reducing its 2020 underlying operating profit
outlook, including the change to straight line amortisation, to
around GBP0.5 million, which represents EBITDA of approximately
GBP4.4 million. However, the Board, is focussed particularly on
gross margin and cash generation. In addition, it is reviewing its
product development and research & development strategy to
maximise use of resource and focus on higher margin connected
products.
Commenting on the results, John Conoley, Executive Chairman of
FireAngel, said:
"While 2019 will see a fantastic sales performance, the Company
is not yet efficient enough to benefit from that growth. It is
disappointing for everyone to have missed the profitability target
after so much hard work. It is time now to generate a return on our
research & development investment. We are strongly focussed on
gross margin, EBITDA and operational cash generation in 2020 and
beyond, and our current experiences with connected technology field
trials underpin our optimism for future profitable growth. We look
forward to updating the market on progress with these, and other
expected trials, in the first quarter of 2020."
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
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 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.
END
TSTLLFVRFDLRIIA
(END) Dow Jones Newswires
December 09, 2019 02:00 ET (07:00 GMT)
Grafico Azioni Fireangel Safety Technol... (LSE:FA.)
Storico
Da Feb 2024 a Mar 2024
Grafico Azioni Fireangel Safety Technol... (LSE:FA.)
Storico
Da Mar 2023 a Mar 2024