Fireangel's shares dive as low sales send expectations up in smoke

The domestic safety products supplier’s core product sales in the UK and Germany only reached “acceptable levels” during recent weeks of the fourth quarter as efforts to install newly optimised production levels impacted delivery of certain high margin products and added short-term costs.

This comes as Fireangel attempts to transition into a technology-led business that delivers connected solutions to complement core products with an extended 'connected home' product set.

Looking forward, the AIM traded company said it anticipates a sales boost from Scottish legislation, expected to be introduced in the first half of next year, requiring the need for retro installation of connected smoke and heat alarms and a CO detector into all domestic properties.

Digital and traditional sales are expected to pick up UK-wide after Fireangel tasted success with recent contract wins with both Mears and St Leger Homes.

“A number of other large connected proposition tenders and legislation driven opportunities are now expected to make a positive impact during the first half of 2019 thereby underpinning the Board's expected recovery to profitability in line with market expectations,” said a company statement.

FireAngel’s shares were down 20.22% at 35.50p at 0921 GMT.