Further to its announcement of 24 January 2023, FireAngel , a leading developer and supplier of home safety products, provides the following trading update.
Trading in the year to date is in line with the Board's expectations with two particular exceptions which will not be recovered this year, although the effect of those exceptions is partly mitigated by lower than expected costs. The well publicised global supply chain issues of 2022 affected the Company by causing lower production than planned, leading to restricted or intermittent supply to its end customers. This especially affected products destined for the UK Trade market and involved the Company's higher function higher margin products. This has led to a loss of momentum which the Board is working hard to restore, but it might take the rest of 2023 to achieve.
Two significant contracts, one in the Company's UK Utilities Division and one in the International Division, were originally expected to contribute strongly to Q1 2023. However, only one of them (a three year contract with British Gas Services Limited which was announced on 31 March 2023) has been secured to date, which will commence deliveries during Q2 2023, leading to slightly lower revenues than forecast for the year ending 31 December 2023 ("FY2023"). The Board now expects the Group's EBITDA for FY2023 to be materially below market expectations. The other significant contract is expected to be signed shortly.
The previously mentioned loss of momentum in UK Trade, caused mainly by a prolonged lack of shipments of stock due to macroeconomic conditions in 2022, is expected to ease across FY2023. The Company's previously announced self-help measures, including price increases, have filtered through into new orders in Q1 2023 and will translate into revenues from Q2 2023 onwards. The Board remains confident that the Group will deliver an improved performance in FY2023.
The Company expects to announce its audited final results for the year ended 31 December 2022 by early May 2023.