Shares suspended for tech firm on the eve of £27m takeover

FireAngel shares are set to be suspended on AIM after auditors at RSM struggled to complete its audit on time, due to resource availability within the team.

It comes on the same day (July 1) that the developer and supplier of home safety products will be taken over by Intelligent Safety Electronics (ISE) – a Singapore incorporation owned by Siterwell Electronics.

Manufacturer of security protection ISE already holds 17.46% of FireAngel and is now set to purchase the remaining shares for 7.40p a share, which values the firm at £27.68m.

Once audited results are published in early July suspension is expected to be lifted until July 17, when FireAngel will cease to trade on AIM.

The deal was approved by the Secretary of State under the National Security and Investment Act 2021 in May, which added conditions to the takeover.

Revenue declined by 29% to £40.9m this year for FireAngel, after it faced a “material uncertainty” after exiting a contract and considered revisiting its banking covenants, which were waived and then reset earlier this year.

Neil Radley, Chief Executive Officer of FireAngel, commented: “2023 was a challenging year for FireAngel, however the Group demonstrated true resilience. As the year unfolded, we took all necessary steps to weather these difficulties, and despite the fall in sales compared with the previous year, we started 2024 with renewed optimism. Trading for the first five months of 2024 have on the whole met the Board’s expectations with strong performance in European sales, our customers in the Utilities sector and the Fire & Rescue Services.

“The progress the new leadership team has made on inventory, cash and expense management has also resulted in lower net debt than expected and a level of inventory much more appropriate for the size of the business. Excellent progress has also been made in relation to the Group’s partnership with Techem and major development milestones have now been completed.

“From 1 July 2024, the Group will have new owners and I would like to congratulate ISE on their acquisition and thank all teams for their patience during what has been a particularly prolonged process. Both ISE and FireAngel share very similar goals, with a commitment to saving lives and providing customers with quality products and services, and no doubt the partnership will significantly benefit customers and consumers in the future.”