TIDMFA.

RNS Number : 5622Q

FireAngel Safety Technology Group

22 June 2020

22 June 2020

FireAngel Safety Technology Group plc

('FireAngel', the 'Group' or the 'Company')

CLBILS loan application update

FireAngel (AIM: FA.), one of Europe's leading developers and suppliers of home safety products, provides the following update in relation to its Coronavirus Large Business Interruption Loan Scheme ('CLBILS') loan application.

Further to its announcement on 27 May 2020, the Group announces that it has secured funding of GBP3.2 million through the CLBILS from its existing bank, HSBC UK. The loan has an annual interest rate of 2.66% over LIBOR. In line with the expected unwinding of the Group's working capital position, GBP0.9 million is repayable in instalments during the remainder of this year and GBP2.3 million in instalments in 2021.

The Company's strong sales performance in early 2020, in line with the Board's budget expectations, necessitated purchase commitments to meet the expected trajectory of future sales. The subsequent reduction in sales in Q2 2020 due to the impact of COVID-19 has led to temporarily increased stock levels in the short term and a consequent reduction in funding being available through the Company's invoice discounting facility with HSBC UK. Securing the CLBILS loan, together with the net proceeds of its recent equity fundraising, will strengthen the Company's ability to work constructively with its suppliers through the challenges of shaping procurement demand with the right level of confidence despite the disruption caused by COVID-19.

John Conoley, Executive Chairman of FireAngel, said : " Like most businesses with a procurement cycle which requires commitments to be made months ahead of expected sales, we want a stable platform from which to shape further procurement decisions while maintaining constructive relationships with suppliers as normality begins to return to our markets. We have a strong relationship with our bankers and are grateful to HSBC UK for recognising the temporary impact of reduced sales on funds available through the invoice discounting facility and, in effect, substituting this with a CLBILS loan. "

For further information, please contact:

 
 FireAngel Safety Technology 
  Group plc                           024 7771 7700 
 John Conoley, Executive Chairman 
 Mike Stilwell, Group Finance 
  Director 
 
 Shore Capital (Nominated adviser 
  and broker)                         020 7408 4050 
 Tom Griffiths 
  David Coaten

Notes to Editors

About FireAngel Safety Technology Group plc

FireAngel's mission is to protect, save and improve our customers' lives by making innovative, leading-edge technology 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

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

END

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