30th Jul 2019 10:10
(Alliance News) - Shares in FireAngel Safety Technology Group PLC plummeted Tuesday after its boss announced he would leave before the end of July, whilst the firm predicted a sharp growth in interim revenue.
Shares in FireAngel were 14% lower a 29.50 pence in London on Tuesday.
For the six months ended June, the smoke detector maker expects revenue to rise 17% to GBP20.7 million from GBP17.7 million. The firm added the results were "ahead of budget."
Underlying this growth, interconnected alarms grew sales 30% to take its total contribution of group revenue to 15%. In addition, UK trade revenue grew over 30% and German revenue continued to recover.
"These signs of sales recovery augur well for medium to longer-term growth and mark important first steps in the group's transition from a pure standalone hardware safety products supplier to a provider of connected safety solutions," FireAngel said in a statement.
FireAngel added its inventory position narrowed to GBP8.5 million at the end of June from GBP11.0 million the year prior. This was a result of new supply chain processes and more rigorous sales management.
"During the period, production at the group's primary smoke alarm and connected devices manufacturing partner increased to meet the growth in demand," FireAngel said. "The company continues to work with its manufacturing partners to improve efficiencies where possible in the production process."
"With sales momentum continuing into the second half of 2019, and gross margins expected to improve based on the mix of revenue, the board expects results for the full year will be in line with market expectations," FireAngel added.
"With approximately 55% of the expected full year revenue to be generated in the second half, full-year performance is dependent on securing several exciting pipeline opportunities which are well-advanced in negotiations and trials," FireAngel continued. "The company is focused on continuing to drive operational improvements through the ongoing review of business operations and margin enhancement."
Separately, FireAngel reported Chief Executive Officer Neil Smith would leave the AIM-listed firm from Wednesday. He had been CEO at FireAngel - known as Sprue Aegis until July 2018 - since 2015.
In his place, Non-Executive Chair John Conoley will assume the role of executive chair.
"On behalf of the board, I wish to thank Neil for his hard work and commitment through a period of significant change and wish him all the best in his future endeavours," Conoley said.
FireAngel will report its interim results on September 24.