FireAngel's shares plummet as supply chain issues incinerate expectations

FireAngel Safety Technologies saw its share price fall over 20% on Monday after confirming that full-year results are now forecast to fall short of expectations due to supply chain, sales and currency issues.

The home safety products developer expects to report sales of around £17.7m for the six months ended 30 June, down 32% from the same period in 2017, and an operating loss of approximately £1.8m, compared to a profit of £1.5m.

For the full-year, the AIM-traded company predicted that it could deliver a potential loss of £0.5m amid "difficult" UK high street trading and continued weakness of the pound against the US dollar.

At 30 June the firm had cash of £3.4m, down from £10m in 2017, unchanged debt of nil and an inventory position that fell 17% to approximately £11m.

The company said it is "confident" of resolving supply chain issues accelerating the ramp to scale, and introducing new products to support current and emerging pipeline opportunities.

The group is currently in the process of transitioning from a hardware safety products provider to an integrated safety solutions firm and said the change is supported by emerging legislative driven opportunities and a strong new contracts pipeline.

FireAngel expects to release its unaudited results for the six months ended 30 June on 25 September.

FireAngel’s shares were down 20.99% at 48.99p at 0912 BST.