Share offer to plug hole caused by ‘very challenging year’

FireAngel plans to raise £6m to “accelerate recovery” after recording substantial losses last year.

The home safety products business, which used to be known as Sprue Aegis, endured a difficult 2018.

Financial figures published today set out a £5.9m pre-tax loss, compared with a small, six-figure profit in 2017. Revenues were down 31% to £37.6m.

It blamed poor sales in Europe, which was caused mainly by overstocking in Germany in 2017, the ongoing impact of its dispute with BRK, and supply chain problems.

However the Coventry-based business is optimistic about the year ahead with the support of the extra funding sought.

FireAngel chairman John Conoley said: “This year has started well and the funds raised will be deployed to accelerate recovery.”

It is looking to raise £6m in an open offer, which is not underwritten, but has at the same time conditionally raised the amount from an existing shareholder and another investor.

The money is being raised at 20p per share – 75% below its recent peak just six months ago.

Neil Smith, group chief executive of FireAngel, said: “Whilst 2018 was a very challenging year for the group, we have made good progress in delivering our strategy to become a technology-led business with connected propositions that complement and drive core product sales.

“Legislative change, the heightened awareness of connected products and our new ranges, combined with a series of self-help initiatives, mean we are now very well placed to return the business to strong medium to longer-term growth and profitability.”

Close