StockMarketWire.com - Home safety product developer FireAngel booked a deeper annual loss and said it would rise about £6.1m from a share issue.

Pre-tax losses for the year through December deepened to £11.0m, compared to losses of £5.9m on-year, in what the company called a 'challenging year'.

Revenue rose 21% to £45.5m, but was offset by product manufacturing delays and cost overruns.

The company had in 2018 signed up a new Polish manufacturing partner for smoke and connected devices and a new Asian supplier.

'Delays in reaching production capacity and efficiency at the Polish manufacturer impacted both the availability of products and the product cost in 2018,' it said.

'Although progress was made during 2019 in moving forward with both yield and efficiency, we continue to see higher costs due, in particular, to wage inflation in Poland and delays in the availability of certain higher-margin products.'

FireAngel also saw revenue from the lower-margin UK retail sector rise 36%, hurting overall margins.

New shares in the company were being issued at 12p each, on a the basis of two offer shares for every three existing shares held.

Looking ahead, FireAngel said Covid-19 was likely to have an impact of up to £4.0m on its revenue in calendar 2020, expected to be largely restricted to the second quarter.

'The directors are nevertheless confident that some of this reduced revenue is likely to be recovered, and not lost permanently, and should fall into the second half of the year when the group's margin is expected to be higher than in the first half,' it said.

'The board expects that the group's results for the year ending 31 December 2020 will be in line with market expectations.'


At 2:14pm: [LON:FA.] Fireangel Safety Technology Group Plc Ord 2p share price was 0p at 10p



Story provided by StockMarketWire.com