Fireangel Safety Technol... Share Discussion Threads

[owenski] 29/3/2019 09:45

These are small unit spends and even with large estate adoption I don't see how they actually make enough money.

The fact that they're trimming costs -staff - dealing with inventories - shows me not enough money is coming in. That is a mighty big fund raise.

[dangersimpson2] 29/3/2019 09:45

I don't think FA. give two hoots what BRK think given that they were at least partly responsible for this mess with their refusal to take back their stock at the end of the agreement costing FA. cash and a lot of management time that should have been spent managing the business.

Will be interesting to see if they take up their open offer though!

[tiswas] 29/3/2019 09:34

I wonder how the conversation went with BRK/Newell/Jarden when they were told about the level of dilution in their already massively underwater stake!

[the big fella] 29/3/2019 09:30

I get where you are coming from.

[pj 1] 29/3/2019 09:22

This is probably a totally unfair comparator, but it is extremely difficult to forget ones own (career) experiences.

I was made redundant from the clothing manufacturing Business (in what eventually became Coats Viyella) in 1999 (Yes I accept I am dinosaur and things will be totally different now)!!


In the 3 years preceding that we were stuggling to make any bottom line profit at all. Every 3 months the FD would issue ''new '' budgets (i.e. he had to to save his own job before the Company), along with a new 3 year plan from our BoD, usually including redundancies to be made to what we called indirect staff i.e. labourers, supervisors, management etc etc. The overdraft eventually had no headroom.


You can guess most of the rest.

Hence my ''scepticism'' with 'budgets' (We always ''hit'' our budget because they were altered before we failed!!))

[the big fella] 29/3/2019 09:07

In the back of my mind I think their budget / forecast was to make 500k net profit this year (2019) and recovering strongly from there. So my take is we may be ahead of that. But you are right, this is a much bigger fund raise than I expected and given the shambolic performance of the company over the last couple of years I get where you are coming from.

[pj 1] 29/3/2019 09:02

Did they budget to do a £6m Placing when they formulated their 2019 forecasts/strategy at the end of 2018? Or are they referring to a revamped Budget done last week?
Lots of questions

[pj 1] 29/3/2019 08:56

TBF- I have my negative head on I'm afraid, a lack of trust, maybe better for me to bail out and move on. I guess the key word their is ''budget''?

[the big fella] 29/3/2019 08:41

Doesn't the outlook statement cover that

Outlook

Sales in the first three months of 2019 are ahead of the Group's budget. Sales to the Group's distributor to the German market are benefitting from the move away from bonded sales at the end of 2018. The Group has also announced a number of contract wins either side of the year end linked to the requirement for greater safety standards introduced in the Housing (Scotland) Act, which came into force on 1 February 2019.

The Board has already taken steps to reduce the cost base and has identified a range of opportunities to improve performance, including reducing stock levels, improving gross margin, rationalisation of sales propositions and better operational organisation.

[pj 1] 29/3/2019 08:38

Why didn't they say ''whilst early in the year, trading is in line with management expectations'' or similar.

[tiswas] 29/3/2019 08:34

Presumably this is one of the reasons why the price has been so weak.

Some signs of optimism on trading and as I have said all along you need sufficient working capital to fund the growth.

Surprised that directors not taking more shares, with one exception.

If it puts a floor under the price I might be tempted to take a few more at 20p. I would rather have a diluted share of something that becomes successful than an undiluted share of a forthcoming disaster.

[pj 1] 29/3/2019 08:34

''The new year has started well''. What does that mean? It is too vague for me and I do not like it in isolation

Does it mean ''the new year has started well as we have been able to raise £6m''?

I shall not be taking part and will wait for evidence that the year has started well on other criteria.

[phowdo] 29/3/2019 08:28

FA left for those who bought the SPRP dream at 200p+

[jaf111] 29/3/2019 08:19

Surely there is little dilution if you take the offer up.....
Understand frustration re company performance but in other situations PIs have been sidelined and effectively wiped out?
(Fortunately I don't hold but have been following with a view to buying.....Still to decide!)

[djr555] 29/3/2019 08:15

Could have been worse!? Massive dilution, you couldn't make it up. The desperation they must be in to raise at this price, let alone £6m. Scary

[jaf111] 29/3/2019 08:04

It could have been worse....PI have at least been invited to participate!

[tiswas] 29/3/2019 07:29

Guess what I will be spending the day reading!

[glasshalfull] 22/3/2019 11:50

Nice to see some debate return. The relentless share price drift doesn’t provide much impetus to post. Can’t believe FireAngel are now valued at £9m...quite a drop from the £165m valuation 3-years ago!

Pleased to observe a few comments on the numbers. I’ll try to provide some context.

I think difficult for the company to place a value on the Scottish contract wins due to the different properties that will be covered by each of the Housing Association’s. It is mandatory for EACH property in Scotland to have SMOKE ALARMs in the living room, hallway, landing and any other rooms used for general living. Suggests 2-4 smoke alarms per property.

In addition EACH property also requires a HEAT ALARM in the kitchen, plus a CARBON MONOXIDE alarm in any room with gas hob, flue or boiler.

Importantly the SMOKE & HEAT alarms must also be interlinked. So that narrows the opportunity to a few suppliers such as FireAngel with their Wi-Safe 2 wireless interlinked product set.

Essentially, each of the 6 x announced contract wins with Housing Associations in Scotland since end Nov 2018 will contain a mixture of properties requiring differing numbers of these products. In my previous communication with the company on this topic - and prior to this legislation being enacted - it was suggested to me that Gross Margins would be considerably higher than retail and that each property may require a mixture of products that could amount to an avg. £150 spend per property. I’m unaware if this ballpark figure has changed.

The important fact for me is that they appear to be developing some momentum in growing their share in UK Trade and no doubt displacing the encumbent AICO who command a v large market share in this segment. Not only do these wins validate FireAngels product set, but also open up the opportunity for them to up-sell to the Housing Associations & landlords their newly developed FireAngel Connect system for remote monitoring & notification.

Hopefully the forthcoming results will finally draw a line under 2018 and help provide clarity on current trading & the opportunities ahead. Ultimately the company require to deliver improving revenues, margins, cash flow & profitability. Nothing else will do.

Kind regards,
GHF

[fft] 22/3/2019 10:35

The RNS is non-reg, so it is not financially significant. I.e. it is more informational, and wasn't actually required to be released. It is good to see any and all contracts being announced, and hopefully it is the start of a steady trend of good news. We could do with it !

[the big fella] 22/3/2019 09:44

My thoughts would be the 10k will be a mix of properties, so an average of £60 a property wont be too far wide of the mark. That would be about £650k net profit to FA.

Certainly a step in the right direction.

For those interested in the scottich legislation should take a look here:

hxxps://www.gov.scot/publications/fire-and-smoke-alarms-in-scottish-homes/

Whose to say post Brexit and Grenfell report the UK won't follow suit. There has to be a high chance that they will.
So there could be a large regulatory tailwind. If they can just sort out the supply change, improve the margin and then execute to the market better (i.e. a return to core values) then we may see investors return. It will take time.

[wanbissaka] 22/3/2019 08:54

I agree 100%. I am just guessing. I would much rather have it "from the horses mouth".

[fozzie] 22/3/2019 08:42

I have emailed both Graham Whitworth and Neil Smith this morning.

They must start to put some figures into these RNS or they are totally meaningless in my opinion. How many homes, how many alarms, when will they be fitted and by whom? I want to see some figures or the share price is going nowhere. 165M mcap to under £9M in less than a year takes some doing. I

[djr555] 22/3/2019 07:16

RNS Reach Story
Go to market news section View chart Print
FireAngel SafetyTech - FA.
Agreement with Link Group
Released 07:00 22-Mar-2019


RNS Number : 6552T
FireAngel Safety Technology Group
22 March 2019

22 March 2019

FireAngel Safety Technology Group plc

('FireAngel' or the 'Group' or the 'Company')



Agreement with Link Group



FireAngel (AIM: FA.), one of Europe's leading developers and suppliers of home safety products, announces that it is to supply smoke and heat alarms to a further housing association in Scotland.



FireAngel will supply Falkirk-based Link Group with the Group's wireless interlinked mains-powered and battery-powered smoke and heat alarms.



The agreement with Link Group, that manages 10,000 properties, is the latest in a series of related wins for FireAngel, follows the requirement from 1 February 2019, for greater safety standards as part of the Housing (Scotland) Act. The new standards require all homes to have a smoke alarm fitted in the living room or lounge and in circulation spaces such as hallways, landings and heat alarms in kitchens. All fitted alarms are required to be interlinked so they can be heard throughout the property. Homes are also required to have a carbon monoxide alarm fitted wherever there are fixed combustion appliances.



Neil Smith, Group Chief Executive of FireAngel, commented: "Today's announcement with Link Group is the latest in a series of agreements with housing associations following the implementation of the Housing Scotland Act. We are pleased to see such traction, which further validates how well-placed FireAngel is to respond to demand for compliant, interlinked products following the introduction of the regulation."





For further information, please contact:



FireAngel Safety Technology Group plc

02477 717 700

Neil Smith, Group Chief Executive

Mike Stilwell, Group Finance Director







Stockdale Securities Limited

020 7601 6100

Tom Griffiths







Vigo Communications

020 7390 0230

Jeremy Garcia / Fiona Henson / Charlie Neish







Notes to Editors



About FireAngel Safety Technology Group plc ('FireAngel')



FireAngel's mission is to protect, save and improve our customers' lives by making innovative, leading edge technology simple and accessible. FireAngel is one of the market leaders in the European home safety products market and launched its own connected homes product proposition at the end of 2016.



FireAngel's principal products are smoke alarms, CO alarms and accessories. The Company has an extensive portfolio of patented intellectual property in Europe, the US and other selected territories. Products are sold under FireAngel's leading brands of FireAngel, FireAngel Pro, AngelEye and FireAngel Connect.



For further product information, please visit: www.fireangeltech.com


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END


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Agreement with Link Group - RNS

[davydoo] 21/3/2019 13:34

At these levels how long until BRK makes an offer for the rest?