Fireangel's shares slip as boss departs, results remain in line

Fireangel Safety's shares slid on Tuesday as it announced that chief executive Neil Smith will leave the company tomorrow, though it also reported strong sales growth and interim results in line with expectations.

Alongside the departure of Smith, who has headed the home safety products supplier and developer since July last year, the company said current chairman John Conoley will be appointed as executive chairman on the first day of August, while part-time executive director Graham Whitworth has agreed to extend his tenure until January 2021.

Meanwhile, the smoke detector specialist said it expects its revenues for the six month period ended 30 June to rise by 17% to £20.7m, adding that these revenues were ahead of budget.

This increase has been driven by an expected 30% increase in UK trade revenues, while the AIM traded company said continued recovery in the German market indicates that the company's market strategies and new product propositions are gaining traction.

Fireangel said its inventory position dropped by approximately 22% to £8.5m due to the implementation of new supply chain processes, more rigorous sales management and enhanced management reporting, adding that it continues to work with manufacturing partners to improve efficiencies where possible in the production process.

"With sales momentum continuing into the second half of 2019, and gross margins expected to improve based on the mix of revenue, the board expects results for the full year will be in line with market expectations. With approximately 55% of the expected full year revenue to be generated in the second half, full-year performance is dependent on securing several exciting pipeline opportunities which are well-advanced in negotiations and trials," said Fireangel.

Fireangel Safety Technology Group's shares were down 15.94% at 29.00p at 1147 BST.