StockMarketWire.com - FireAngel warned on profit after its processes were stretched too thin amid a ramp-up in sales activity.

For the year ending 31 December, the company said it expected to report an underlying operating loss in the range £2.6m to £2.9m, and revenue below previous market expectations in the range £44.5m to £45.0m.

FireAngel also reduced its 2020 underlying operating profit outlook to around £0.5m.

Full-year performance was hurt by a ramp-up in sales growth of 20% that had 'stressed the company's processes from production right through to customer fulfilment, reducing both revenue and margin,' the company said.

FireAngel said it was reviewing its product development and research and development strategy to maximise use of resources and focus on higher-margin products.

'While 2019 will see a fantastic sales performance, the company is not yet efficient enough to benefit from that growth. It is disappointing for everyone to have missed the profitability target after so much hard work,' it added. At 9:26am: [LON:FA.] Fireangel Safety Technology Group Plc Ord 2p share price was -3p at 9.75p



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