Fireangel Safety Technol... Share Discussion Threads

[the big fella] 30/9/2021 07:09

Microscope - normally you read a list of excuses like that when they have missed by a mile. They are in line and given the headwinds faced, which we all know are not fiction, then that is ok. Not good but ok. Going forward it will be much harder for them to achieve guidance but they didn’t downgrade for the full year. Given we are half way through they should have a fair idea whether that is likely.

[microscope] 29/9/2021 21:13

TBF what annoyed me was this bit (pretty sure I won't be alone).

'...challenges have come from factory restrictions, port closures, driver shortages, sea freight delays, lost efficiency opportunities, missed collaboration opportunities with partners, component shortages, and ensuing complexity...'

I couldn't ditch a frustrating image of Directors sitting round the table discussing report.

'Right what have been problems?'

'Port closures' 'Yep'. 'Freight delays?'

'Absolutely'

And so on until after 4 or 5... 'Any more?' Yup....

Until finally

'Ensuing complexity, anybody'. Ooh yeah chuck that in.

You get the drift... It's blame all and everything that isn't us.

I don't doubt a lot of these are real and mostly Brexit related.

The 3.1 million burn from June 30 to Sept 20 should be sorted 'once things return to normal' they say (supply chain? pre-Covid? all above factors?)

As you say if they can sort out cashflow etc that might be in/by 2022.

But I'm not holding my breath, it is time for management to display a bit of steel about factors closer to home imho!

[the big fella] 29/9/2021 17:20

Just taking another look at the results. The cash position when compared to prior periods will be different. If your component lead time has moved for 90/120 days to 1/1.5 years, if they place the orders now they will have to pay for them. So that could account for 2/3 million given the steer they have made on increasing inventory.

Given these supply chain issues appear to be the new normal, I think it is encouraging that they have met market guidance for the first half and also expect to meet market guidance for the second half.
So looking at the broker notes based on that I would expect them to be cash generative either by the end of the year or more likely q1 next year. That in itself will be a huge milestone for the company.

I can't see these issues resolving themselves anytime soon but in time when other countries have vaccinations in place then the movement of people and goods will slowly ease. That maybe a year / 18 months down the line or further, who knows.
So clearly it is frustrating that the company has pent up trade demand for its products that it cannot fill currently.
But their competitors are in exactly the same position and can't fill them either. So those sales are not lost, they are deferred.

The biggest concern with FA. has been their lack of control over cash and the diminishing margins. If they do make it to cash flow positive early next year as per market guidance, and we see a continuation of the improvements to margin then we may start to see this reflected in the share price. Lots of ifs and buts and maybes but there is some light at the end of the tunnel.

[tiswas] 29/9/2021 17:17

I had not really focused on the returns needed after 3 year vesting period for them to benefit.


Total Shareholder Return (TSR)

% of Options that vest under the TSR performance condition (50% of total award)

Less than 100% growth

Nil

100% growth

25%

Between 100% growth and 200% growth

Between 25% and 100% on a straight-line basis

200% growth or more

100%





Earnings Per Share (EPS)

% of Options that vest under the EPS performance condition (50% of total award)

Less than 2.2 pence

Nil

Between 2.2 pence and 3.2 pence

Between 0% and 25% on a straight-line basis

Between 3.2 pence and 4.2 pence

Between 25% and 100% on a straight-line basis

4.2 pence or more

100%

[tiswas] 29/9/2021 17:10

According to the 9/7/21 rns 7.177m.

Following the awards and surrenders, the total interests of each of the PDMRs referred to above in Shares is as follows:





Name

Ordinary shares held

% of ordinary shares held

Interest in shares in share schemes





Directors

John Conoley (including wife's holding)

739,463

0.41%

7,177,446

[microscope] 29/9/2021 16:32

Many of his options, at least under the incentive scheme, are at 2p. They recently cancelled the 2019 ones, presumably because they think there's no chance of reaching the shareholder return targets in three years from that date, in time..........And replaced them with more (1.85 million options for Conoley if I recall, up from 1.5 million previously)for three years, still at 2p. So if they ever do manage to reach the targets, he can afford some at full current price.

[tiswas] 29/9/2021 10:05

From memory he has something like 10m+ options so the fact that he is also putting in cash is encouraging to me.

[the big fella] 29/9/2021 09:49

I wholeheartedly agree

[billybunter1970] 29/9/2021 09:42

It's a large number of shares, but not large amount of cash in proportion to his annual remuneration. It would be encouraging to see a few other board members following suit.

[the big fella] 29/9/2021 07:15

Encouraging that JC sees value at these levels. 150k a decent slug.

[microscope] 27/9/2021 22:46

Company has always had a decent product offering, but there forever seem to be issues. Now it's the supply chain.

But my issue has essentially always been the same. They've had 9 million cash in new shares plus three million in Covid loans, yet the net cash increase for the period was 4.3 million, and since June it seems they've burnt through 3.1 million of that to assist the supply chain. No doubt a chunk of that 12 million will also have been used to pay down debt, but that's not going to grow the business.

I'm not sure management have ever had control of the finances and it doesn't seem to me to be improving.

Been on my watchlist for a very long time (I once held in Ofex days!) but I'm afraid still in the avoid for now column.

[mr hangman] 27/9/2021 22:17

Same old story, I only hold a few, was going to pile in earlier in the year when they hit 28p, glad I didn't , one for the bottom draw

[the big fella] 27/9/2021 12:11

YasX I can't argue with that.

[yasx] 27/9/2021 11:51

TBF,

The problem is with execution - they have always, for one reason or another, blamed an external factor for non-delivery.

That sort of theme can only persist for so long and the endless placings to cover shortfalls must end at some point.

[the big fella] 27/9/2021 11:46

But given what we are seeing across the distribution network that really shouldn't come as a surprise. It would be more of a surprise if they have said nothing. Will these conditions last for ever, probably not, but could last longer than most would like. They will adapt, the market will adapt. Pricing will adapt. We all move on.

[yasx] 27/9/2021 10:53

The outlook statement appears to be the canary in the coalmine warning of a poor outcome in due course....

[the big fella] 27/9/2021 10:47

I am a glasshalfful with these results. Encouraging they are in line dispite numerous different headwinds. They are just one of these companies that always seem to come up against something. The guidance comes as no great surprise and if I hadn't seen something like that I would have been extremely surprised. If one day they get a clear run at things they may well yet make some money.

[tiswas] 27/9/2021 08:29

Encouraging interview with JC. Making slow progress.

Any broker updates?

[tomps2] 27/9/2021 08:18

FireAngel (FA.) interim results overview September 2021

Executive Chairman, John Conoley gives an introduction to the company and an overview of the results for the six months ending 30th June 2021.

Watch the video here:

Or listen to the podcast here:

[masurenguy] 27/9/2021 07:31

Some encouraging progress being made in the turnaround project but still someway to go with the impact of current market logistical problems!

Interim results for the six months ended 30 June 2021

Financial highlights

-- Revenue up 35.0% to GBP22.2m (H1 2020: GBP16.5m)
-- Gross profit up 42.8% to GBP5.2m (H1 2020: GBP3.6m)
-- 130 bps increase in gross margin to 23.5% (H1 2020: 22.2%) in line with the Board's expectations
-- Underlying operating loss(1) reduced by 46.1% to GBP1.4m (H1 2020: GBP2.7m)
-- Underlying EBITDA(2) of GBP0.2m (H1 2020: underlying LBITDA(1) GBP0.8m)
-- Significantly reduced loss before tax GBP1.7m H1 2020: GBP3.0m)
-- Capitalised product development and production set up costs of GBP1.3m (H1 2020: GBP1.6m)
-- Inventory at 30 June 2021 of GBP4.9m (30 June 2020: GBP9.4m) - restriction on inventory availability due to global supply chain challenges
-- Net cash (before lease obligations) at 30 June 2021 of GBP2.2m (30 June 2020: GBP1.5m net debt; 31 December 2020: GBP3.7m net debt) which comprised cash of GBP5.8m and debt of GBP3.6m-- Net debt at 20 September 2021 of GBP0.9m which comprises cash of GBP2.3m and debt of GBP3.2m with no drawings under the Company's invoice discounting facility
-- Successful fundraising of GBP9.8m (gross) announced in April 2021 and a GBP3.2m loan under the Coronavirus Business Interruption Loan Scheme (CBILS) plus a new GBP0.5m Receivables Finance CBILS secured in March. Following the repayment of the balance of the CLBILs for GBP2.0m, the new loan provided a net GBP1.2m cash inflow to further strengthen the Group's balance sheet

(1) Underlying operating loss of GBP1.4m in H1 2021 is before a share-based payments charge of GBP0.1m (H1 2020: GBP2.7m before a share based payment charge of GBP0.2m).

(2) Underlying EBITDA of GBP0.2m in H1 2021 stated before unaudited share based payment charge of GBP0.1m (H1 2020; underlying LBITDA of GBP0.8m stated before unaudited share based payment charge of GBP0.2m)

John Conoley, Executive Chairman of FireAngel, commented: "Overall, we have delivered a positive performance in line with the Board's expectations for the half year against a challenging backdrop. Those events that are within our control have gone well and we have continued to make progress against our strategic priorities, including our gross margin improvement plan. We are seeing growing interest in our Connected technology offering as we push forward with focusing on better quality sales of our Connected propositions. The funds raised in April are being deployed as planned, although we have not been able to build our inventory to the level we had hoped due to the ongoing supply chain issues. The second half of the year presents challenges for the Group. Lockdown restrictions have eased in our sales markets, but increasing challenges have come from factory restrictions, port closures, driver shortages, sea freight delays, lost efficiency opportunities, missed collaboration opportunities with partners, component shortages, and ensuing complexity. There appears to be little easing up in the issues facing the global supply chain and the journey out of COVID-19 restrictions may not play out as expected. We remain on track to meet market expectations for the year, but remain cautious due to the dynamic nature of the pandemic related challenges."

[tiswas] 24/9/2021 11:48

Someone confident and buying ahead of the results next week!

[tiswas] 07/9/2021 10:32

There was!

[billybunter1970] 07/9/2021 09:27

TBF - as it resulted in a price increase, does this mean there is a keen buyer in the market?

[the big fella] 03/9/2021 10:36

1.6 mil just reported from yesterday. Wonder what that’s about?