Home safety products supplier’s recovery on track

Home safety products supplier FireAngel’s has said its recovery is on track after enduring a challenging 2018 in which it recorded substantial losses.

The stock market-listed company, which used to be called Sprue Aegis, has been boosted by “encouraging” sales in the first half of 2019 and expects trading for the period to be ahead of budget.

Ahead of its AGM today, chairman John Conoley, said: “I am encouraged by the growth in first half sales, with good progress being made in the sales of interconnected alarms, growing over 30% year-on-year and now accounting for 15% of total company sales.  Particularly pleasing is the growth in UK Trade revenue which is expected to be more than 30% above the same period last year.  Overall, the board expects first half trading to be slightly ahead of budget.”

The company said its balance sheet has been strengthened by the fundraising undertaken at the end of March, raising £6m to “accelerate recovery” after the business posted a £5.9m pre-tax loss in 2018, 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.

The company said this morning: “The focus for the rest of the year is to maintain the sales momentum, continue operational improvements and margin enhancement.”

FireAngel also announced that William Payne will step down as a non-executive director upon the announcement of a replacement non-executive director.

The search for Payne’s successor has started.

“On behalf of the board, I pass on our sincere thanks for his many contributions, particularly through recent challenges, and wish him well in the future,” said Conoley.

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