FireAngel Safety Technology Group Significant partnership to develop new gen alarm (5928U)
April 07 2021 - 2:00AM
UK Regulatory
TIDMFA.
RNS Number : 5928U
FireAngel Safety Technology Group
07 April 2021
7 April 2021
FireAngel Safety Technology Group plc
('FireAngel', the 'Group' or the 'Company')
Significant long term partnership signed to develop new
generation smoke alarm
FireAngel (AIM: FA.), one of Europe's leading developers and
suppliers of home safety products, announces that it has signed a
long term partnership agreement with a German energy and efficiency
service provider for the real estate sector (the "Partner") to
provide a fully funded research and development programme for a new
generation smoke alarm. The Partner which was founded nearly 70
years ago provides services to approximately 12 million apartments
worldwide and in its most recent financial period, being the six
months ended 30 September 2020, had turnover of approximately EUR
317 million.
Following a competitive tender process and almost 18 months'
co-operation between the parties, including extensive customer-led
research, FireAngel has agreed to provide the Partner with a new 10
year connected smoke alarm based upon FireAngel's Gen6 platform.
This next generation alarm will offer additional, innovative safety
and environmental features to meet the increased demands of
landlords as well as tenants. Both parties will have the right to
use any foreground IP resulting from development of the new smoke
alarm.
Pursuant to the terms of the partnership agreement, the Partner
will fund the development phase of the next generation smoke alarm.
In addition, FireAngel will receive a fee of GBP1.4 million for use
of its background IP during the development phase. Thereafter, once
production of the next generation smoke alarm has commenced, a
royalty fee per product will be payable to FireAngel with a
multi-million volume fee agreed for the initial 30 months.
Manufacturing of the next generation smoke alarm is expected to
commence in early 2024. It is forecast that 7 million new devices
will be produced with a minimum of 3.5 million expected to be
produced in the first 2.5 years.
It is anticipated that FireAngel will be responsible for
production of the new smoke alarm and that a manufacturing partner
will be selected jointly during the development phase. It is
expected that FireAngel will receive a minimum 3 year manufacturing
commitment and will receive a manufacturing and support fee payable
for each device delivered.
John Conoley, Executive Chairman of FireAngel, commented: " This
is the most significant development for FireAngel for several years
and is expected to be transformational for the Group. The directors
estimate that, during the life of the partnership, the Company
should earn up to EUR21 million in royalty, management and support
fees. The Company's long-standing commitment to R&D, combined
with the adoption of development processes from the IT world, have
contributed to us signing this partnership which will be materially
cash positive and contribute financially to the Company for the
long term. Finally, it reflects our aim to spend more of our time
and resource on higher value activities. The customer has acted
like a true partner throughout this long process."
For further information, please contact:
FireAngel Safety Technology
Group plc 024 7771 7700
John Conoley, Executive Chairman
Jon Kempster, Interim Chief
Finance Officer
Shore Capital (Nominated adviser
and broker) 020 7408 4050
Tom Griffiths/David Coaten
Houston (Financial PR) 0204 529 0549
Kate Hoare/Laura Stewart
Notes to Editors
About FireAngel Safety Technology Group plc
FireAngel's mission is to protect and save lives by making
innovative, leading-edge home safety products which are 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
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