Technology business to raise £9m to fund development plans

FireAngel is to raise £9m to strengthen the business and lay the platform for a period of development and growth.

The technology business makes safety devices, such as smoke, carbon monoxide and heat alarms, which it sells to homeowners and commercial customers.

The Coventry-based business has launched a £6.9m open offer this morning. In addition it has already raised £2.9m in a firm placing and has a conditional placing of £6.9m in place if the open offer is not taken up in full.

After the cost of the fundraising, the amount available to the company will be about £9m. It plans to use the cash to fund research and development to accelerate new products and implement efficiency improvements, and to strengthen the company’s balance sheet.

“The company has made a good start to 2021 and I believe that there is real momentum in the business,” said John Conoley, executive chairman of FireAngel.

“The funds we are raising will provide working capital for the next stage of our development, allowing us to execute our strategy, accelerate growth in sales and margin and ultimately enhance shareholder value.”

FireAngel has also revealed today that it narrowed pre-tax losses last year to £9.3m, on sales of £39.9m.

It said it is “targeting improved performance and sales growth in 2021 versus 2020” and is looking to continue its progress monetising its investment made in connected technology.

Conoley added: “The operational progress we made is providing a strong platform for further improvement in the new financial year and we have made a good start to 2021, with the UK Government’s roadmap out of lockdown giving us clarity and confidence in our plans for the year ahead.

“Our overriding priority now is to return to profitability and become cash generative, which we intend to achieve with our gross margin improvement plan and the rollout of our connected homes technology, while maintaining our leading position in our retail markets and growing our UK and Europe trade business.”

FireAngel has also appointed Zoe Fox as chief financial officer, as she steps up from her current role as finance director of the company’s principal subsidiary, FireAngel Safety Technology. She takes over from Jon Kempster, who has been interim chief financial officer and will now become a non-executive director.