20 Jun 2022 07:00
20 June 2022
FireAngel Safety Technology Group plc
('FireAngel' or the 'Company')
FireAngel (AIM: FA.), a leading developer and supplier of home safety products, announces it has signed an agreement with its bank, HSBC UK Bank plc and UK Export Finance, for a standby letter of credit facility which is supported by UK Export Finance, up to a combined sum of £3,500,000, for an initial term of 12 months (the "Facility").
The Facility will attract a quarterly charge of 0.55% on the total amount available under the Facility. When it is deployed, it will not add to the Company's net debt position, and, over time, is expected to improve the Company's creditor days. The Company's net debt at £3.8m on 16 June 2022 is currently materially lower than previously expected, and whilst positive, this is mainly a function of working capital timing as production levels have built up during 2Q 2022. Net debt levels are expected to converge with expectations in 2H 2022.
The Facility supports the variability of working capital arrangements with certain suppliers, which is driven by longer lead times on components and the expected growth of the Company. The Board believes that the Facility is a prudent measure which will help offset the unpredictability in the Company's supply chain and input prices.
John Conoley, Executive Chairman of FireAngel, commented: "The continued support of our bank in providing this facility will provide greater certainty in our supply chain through offering additional reassurance for certain suppliers who are procuring the longer-term inventory needed for the growth of the Company over the next few years."
For further information, please contact:
FireAngel Safety Technology Group plc | 024 7771 7700 |
John Conoley, Executive Chairman | |
Zoe Fox, Chief Finance Officer | |
Shore Capital (Nominated adviser and joint broker) | |
Tom Griffiths/David Coaten/Tom Knibbs | 020 7408 4050 |
Singer Capital Markets (Joint broker) | |
Rick Thompson/Alex Bond | |
020 7496 3000 | |
Houston (Financial PR) | |
Kate Hoare/Joe Burgess | 0204 529 0549 |
Notes to Editors
About FireAngel Safety Technology Group plc
FireAngel's mission is to protect and save lives by making innovative, home safety products which are simple and accessible. FireAngel is one of the market leaders in the European home safety products market.
FireAngel's principal products are connected smoke alarms, CO alarms, heat alarms and accessories. The Company has an extensive portfolio of patented intellectual property in Europe, the US and other selected territories. Products are sold under FireAngel's leading brands of FireAngel, FireAngel Pro, FireAngel Specification and AngelEye.
For further product information, please visit: www.fireangeltech.com
Fireangel (FA.)