StockMarketWire.com - FireAngel swung to a loss for the year as revenue slumped as its venture into Europe failed to deliver the sales growth management had expected. The company also detailed plans to raise capital approximately £6.0m to accelerate recovery.

The shares were issued at a price of 20 pence, representing a premium of approximately 5.5% to the closing Price on 28 March 2019.

For the year to 31 December 2018, the company reported a loss before tax of £5.9m, compared with a profit of £0.5m and revenue slumped to £37.6m from £54.3m.

The company outlined three issues that had weighed on profits, including lower than anticipated sales into Europe following overstocking in the German trade sector; a 3.8m exceptional charge to settle a legal despite with BRK Brands; and short-term delays in reaching production capacity and efficiency impacted both the availability of product and the product cost in the second half of the year.

'Whilst the Board is disappointed with 2018's financial performance, it remains confident that the Group's transition from a pure standalone hardware safety products supplier to a provider of connected safety solutions will underpin strong medium to longer-term growth and profitability,' the company said.

'To accelerate this recovery, we have taken steps to restructure our banking facilities to better meet our needs and announced today a placing and open offer to raise £6.0 million.'

At 9:53am: [LON:FA.] Fireangel Safety Technology Group Plc Ord 2p share price was +1.5p at 20.5p



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