(Alliance News) - Shares in FireAngel Safety Technology Group PLC slumped on Tuesday as it reported a widened pretax loss in the first half of 2022.
Shares in the Coventry-based home safety product maker were trading 23% lower at 8.50 pence each in London on Tuesday morning.
FireAngel reported a pretax loss of GBP1.73 million in the six months to June 30, widened from GBP1.66 million the year before.
The company's cost of sales widened to GBP20.0 million from GBP17.0 million last year, while its operating expenses widened to GBP7.4 million from GBP6.9 million last year.
As a result of the loss, no interim dividend was proposed. No dividend was paid in 2021 either.
The company increased its revenue by 15% to GBP25.6 million from GBP22.2 million the year before.
Although this will mean revenue for the year ending December 31 will be "at the top end of the market expectations", the impact of foreign exchange and inflation means that earnings before interest, tax, depreciation and amortisation will be "materially below market expectations."
The company now expects EBITDA to be between break even to GBP1.5 million.
Despite the wider macroeconomic concerns, FireAngel stressed that its "careful and prudent improvement" to its operations and supply chains has helped mitigate these factors. This has left it better positioned even as disruption has started to ease, it added.
Going forward, the company said that its ability to adapt to changing circumstances, in particular surrounding "regulation around safety standards", leaves the company in "a good position to continue to grow and prosper."
The company said it looks to the future with "justified optimism" despite the macro headwinds.
Executive Chair John Conoley said: "I am delighted by the revenue performance and the continuing success of our margin improvement activities. Our execution so far this year has largely conformed to our plans which delivered the expected underlying margin improvement before the combined impact of adverse currency movement and inflation."
"While the circumstances outside our control have been particularly frustrating, the board expects 2022 to demonstrate the first proof that we have turned the company around with more still to come," Conoley concluded.
By Chris Dorrell; chrisdorrell@alliancenews.com
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