Fireangel Safety sees 'significant reduction' in FY sales volume
Home safety products manufacturer Fireangel Safety Technology warned on Monday that sales were expected to be significantly lower year-on-year as measures taken by the group to manage trading challenges and fight inflationary pressures came at the expense of "a significant reduction in sales volume".
Fireangel now expects to report full-year sales of approximately £41.0m, down 28.8% year-on-year, and said whilst recent restructuring efforts in its sales team will ensure that it is "well positioned to build momentum in 2024", the changes also had some impact in the short-term, particularly in UK Trade performance.
International sales also remained "comparatively depressed" in H2 as new legislation in Benelux in 2022, which led to a surge in customer demand in the region for products, was not carried into 2023 as customers looked to reduce inventory intake.
Fireangel added that taking into account net proceeds of £5.3m received from its fundraising in June 2023, as at 31 December, the group had £3.1m of net debt excluding IFRS16 lease liabilities, which comprised cash balances of £1.7m, invoice discounting facility of £2.6m and a CBILs loan of £2.2m.
As of 1010 GMT, Fireangel shares were down 1.55% at 5.66p.
Reporting by Iain Gilbert at Sharecast.com
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