FireAngel plans to raise \u00a36m to “accelerate recovery” after recording substantial losses last year.<\/p>\n
The home safety products business, which used to be known as Sprue Aegis, endured a difficult 2018.<\/p>\n
Financial figures published today set out a \u00a35.9m pre-tax loss, compared with a small, six-figure profit in 2017. Revenues were down 31% to \u00a337.6m.<\/p>\n
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.<\/p>\n
However the Coventry-based business is optimistic about the year ahead with the support of the extra funding sought.<\/p>\n
FireAngel chairman John Conoley said: “This year has started well and the funds raised will be deployed to accelerate recovery.”<\/p>\n
It is looking to raise \u00a36m 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.<\/p>\n
The money is being raised at 20p per share – 75% below its recent peak just six months ago.<\/p>\n
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.<\/p>\n
“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.”<\/p>\n","protected":false},"excerpt":{"rendered":"
Fundraising is response to substantial losses<\/p>\n","protected":false},"author":18,"featured_media":2027999,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"coauthors":[81],"class_list":["post-2027998","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","tag-top-story"],"yoast_head":"\n