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FireAngel Safety Technology Group PLC on Tuesday announced leadership changes, with former Universe Group PLC executives at the helm, amid an offer to put the company up for sale, and annual results.
Shares in the developer and supplier of home safety products fell 33% to 4.70 pence each on Tuesday morning in London.
The company said former executive chair John Conoley resigned as director from the company immediately on Monday, with FireAngel noting his departure in a brief sentence. He is replaced by former Universe Group CEO Neil Radley as CEO and former Universe executive chair Andrew Blazye as non-executive chair, both from Wednesday. Universe is an AIM quoted provider of transaction products and services to the retail industry.
Further, the company announced an open offer for up to 120.7 million of its shares for 5.05 pence per share amid a strategic review, aiming to raise up to £6.1 million. The offer is a 27% discount to its last closing price of 6.88p on Monday, but would be 7.4% higher than its current share price of 4.70p.
It added that its long term manufacturing partner Ningbo Siterwell Electronic Import & Export Co Ltd has agreed to subscribe for 55.3 million shares, or around 46% of the offer, for a total of £2.8 million, subject to clawback by qualifying shareholders.
The company said it will use net proceeds to reduce its net debt to £2.8 million from £4.8 million as at December 31 last year, which had increased annually from £100,000. Further proceeds will be used for working capital purposes.
Meanwhile, FireAngel reported a pretax loss of £6.1 million for 2022, widened 65% from £3.7 million in 2021. Revenue grew 32% to £57.5 million from £43.5 million. Cost of sales however increased 42% to £47.4 million from £33.4 million, while operating expenses grew 19% to £16.5 million from £13.9 million.
The company did not declare a dividend, unchanged from 2021.
Looking ahead, it said trading is in line with revised expectations, with a weaker than expected start to 2023 partly mitigated by lower than anticipated costs.
It added: ‘An extensive review of the group‘s operations and cost base has already taken place in Q2 2023 to help ensure that the group is best positioned to return to profitable growth as soon as possible.’
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