Fireangel Safety Technol... Share Discussion Threads

[tiswas] 13/8/2018 20:25

"near term portfolio rebalancing by select shareholders; low August stock market volumes and, lack of liquidity preventing full market price discovery".

Is there a link for this?

[masurenguy] 13/8/2018 14:18

FireAngel Safety Technology Group
13 August 2018

Launch of FireAngel Connect products

FireAngel (AIM: FA.), one of Europe's leading developers and suppliers of home safety products, announces the launch of its extended FireAngel Connect product range. FireAngel Connect uses FireAngel's Wi-Safe 2 wireless interlink technology to connect products across the Company's smoke, heat, carbon monoxide and Wi-Safe 2 device range to a cloud-based system for remote monitoring and instant notifications.

Alongside its Wi-Safe 2 network, FireAngel has developed solutions that integrate with leading smart home hubs. By utilising Z-Wave(1) and Zigbee(2) wireless communication technologies, FireAngel has the potential to connect with other devices and offer additional functionality. The extended range includes a new touch screen smart panel, and a home automation hub that enables continuous monitoring of devices within the property, ensuring timely updates and notifications.

The FireAngel touch screen smart panel has been designed specifically to address the needs of housing associations and private landlords. The hub's functionality enables housing associations and landlords to remotely monitor the performance of devices in the property, and provides tenants with the ability to report issues, as well as to receive updates and notifications directly. The FireAngel smart panel will improve tenant-landlord/housing association interaction, streamline maintenance management processes and automate required paper trails.

Each of the connected devices have been designed to include the Company's FireAngel Predict(TM) technology which uses a unique predictive algorithm to monitor data in real time over the internet to identify properties with an increased risk of fire, enabling landlords and housing associations to take action before a potential incident occurs.

The FireAngel Connect product range will be available for sale later this year.
...........................................................................................................................

Graham Neary's comment: "This fire safety company had yet another profit warning last week. Today it offers a rare good news announcement: information on its new product range. This includes a touch screen smart panel for remote monitoring of devices. It "has been designed specifically to address the needs of housing associations and private landlords". I was concerned that the company was looking to head into overly speculative territory with its new product range, but this sounds promising. Shares up 4% as I type.

[simon gordon] 08/8/2018 16:39

Problem with buying in now is, does the kitchen sink get bigger?

Turns out there was a small one in May with the Prelims, no sign of one with the AGM statement and then a medium sized one with the trading update. Will the Interims mean an even bigger kitchen sink which sinks the forecasts for 2019? 2018 is already sunk and down the drain.

Can the supply chain issues make 2019 go down the plug hole?

When it all went wrong for DIA they were able to bring production back home. FA. have Flex and little else, there is no safety net.

Until FA. categorically and evidentially prove the supply chain issues are in the past, buying in is a blind meditation.

[the big fella] 07/8/2018 02:45

Horn dean Eagle - yes that 90p bid from Jarden does seem like an age ago. How ironic would it be if they came back and offered 85p with the company seemingly at its lowest ebb!

[masurenguy] 06/8/2018 22:59

Quite agree TBF. I'm also prepared to wait this out especially since their finances remain quite resilient.

Graham Neary's take: "The H1 operating loss of £1.8m is in line with expectations, but the full-year loss is now expected to be up to £0.5m, below expectations. To spin it positively, I suppose this does at least mean that we are forecast to have an operating profit in H2.

The cause of the profit warning...a combination of certain short term transitional issues within the supply chain recently identified, the continued weakness of £Sterling against the US$ and difficult UK high street trading. The company has switched to manufacturing its products with a Polish partner, and I think it's excusable that there would be a few issues as production ramps up there.

A bit harder to swallow, however, is the switch from its traditional role as a hardware provider to "a more integrated safety solutions provider", i.e. the "connected homes" or "smart homes" idea. While the items described as "Connected Products" on its website look interesting, I would be a bit concerned that the company might be hoping to market itself as an "Internet of Things" stock, i.e. to chase the mountain of speculative money that has entered that space.

FireAngel had £3.4m of cash at the end of June and a £7m working capital facility, so it should not suffer any financial distress. Maybe the market cap is sufficiently low now (£20m) that it makes sense as a contrarian bet. While I haven't got enough conviction/faith in the company's long-term earnings trajectory to make that bet myself at this stage, and I'm not convinced by the underlying quality of the business, I do think it might be worth a little bit more in-depth research at this very depressed share price. Net tangible asset value was £14m at December 2017, with £13m of intangible software and product development costs shown on the balance sheet too. So you can see how it's beginning to approach levels where it would look quantitatively cheap (assuming that losses aren't huge)."

[panic investor] 06/8/2018 22:39

Looks like another one floated to bag the money then go bust

[the big fella] 06/8/2018 18:44

They certainly need some positive news on the contract front especially if it’s home connected as that wouldn’t be affected by the supply chain issues. Clearly the supply chain issues need to be resolved sooner rather than later.
All in all I can not deny to be disappointed. I shall not be adding until I see some evidence from the company they have turned the corner. I would hope that when results come in September we will have positive news on the supply chain issues and maybe a contract or two on the home connected front. I live in hope rather than expectation at the moment!

[briggs1209] 06/8/2018 18:19

Cash from December to June looks to be stable but inventory is dropping. Either they might be writing down some inventory or inventory sold down and cash not rising. I think they have at least 12 months before cash would start to be an issue.

I cannot see myself returning to buy this company again without an indication of better times ahead.

[the big fella] 06/8/2018 15:31

They had 3.3 mil net cash as at the year end 31/12/2017 and have 3.4 mil as at 30/6/2017. Epo you are comparing to interims last year.

[epo001] 06/8/2018 15:18

They had £10M on 30/6, where are you getting 3.3M from?

[mikeelkin] 06/8/2018 15:13

I don't understand the references to cash burn. They had £3.3m at the end of last year. They had £3.4m on 30/6.

Mike Elkin

[verisonal] 06/8/2018 15:02

Very sorry to see this statement for some strong reliable people on this board who don't tend to get it wrong. Personally I've got away with one, but that doesn't make it any more comfortable viewing. This is a thoroughly shocking statement in its depth which i didn't see coming to nearly this extent, with a potential loss even mentioned. Sales are clearly struggling and new contracts must be needed hastily. Can't help thinking the old CEO's timing of his departure was well-timed.
Tough start for the new team, let's hope they can turn round the ship, but it will be a long old process from here I fear. Talk of 3 million profit and maybe a dividend now gone. Good luck to holders, and I hope you get enough of a rebound to ease things.

[simon gordon] 06/8/2018 11:02

The Chairman has over cooked it and left many with their pants pulled down or egg on their faces.

It looks like it's going to hell in a handcart.

C'est la vie.

[horndean eagle] 06/8/2018 10:19

As a holder of LUCE I had worried about how FA. would be faring given similar retail backdrop. Took comfort from results having only been out a few weeks ago and bought last week in reasonable size and then more on Friday. Scumbag selling them to me obviously bent and deserves their collar lifting. So blatant insider trading. Not sure why I bought in. Management got very lucky once with French legislation. Other than that they seem utterly useless. To think everyone was moaning about Jarden offering 100p or whatever it was moons ago. The thought was it grossly undervalued the company. In hindsight they had a much better idea of what it was worth than the rest of us.

[briggs1209] 06/8/2018 08:30

This price could go anywhere now if the opinion is that they run out of cash and need to raise. The HSBC facility gives them a good buffer for the next 12 months. Messy.

Fire Sale?

[hybrasil] 06/8/2018 08:08

Now 42p. My 40 p in sight

[hybrasil] 06/8/2018 08:04

Pj I agree. 47p bid now

[pj 1] 06/8/2018 07:50

I have read it a few times, and whilst a subjective view the tone seems to hint to me of a worsening trading outlook to come

[pugugly] 06/8/2018 07:49

Marked down already pre opening - Cash burn rate suggests to me medium term exhaustion unless stock can be sold at a faster rate - Possible fund raisng ??

[phowdo] 06/8/2018 07:47

looks like the board have accomplished FA.

[hybrasil] 06/8/2018 07:32

That's a pretty frightening trading statement. 40p today?

[cc2014] 03/8/2018 13:31

Good afternoon.

It would appear we have a seller out there. The questions are how many have they got left to sell, have they finished selling, how difficult is it to catch a falling knife, is it one seller or more than one seller, how patient are they why are they selling?

None of which I have he answer to.

I continue watching with interest...

[glasshalfull] 30/7/2018 10:32

You beat me to it Simon. Undoubtedly the reason for the decline on Friday...and opportunity for top up at the bid price. Thanks for posting. If ever there was a warning ⚠️ sign & shot across the bows then this certainly fits the bill!

Kind regards,
GHF