FireAngel Safety Technology Group – sales up 32% in 2022 precedes break into big profits in 2024
This leading developer and supplier of home safety products delivered a resilient performance in 2022.
Reporting its strongest revenue performance since 2017, the group’s business unit made a strong showing across most of its territories, with demand outweighing supply, driven by increasing legislation.
Sales for the year at FireAngel Safety Technology Group (LON:FA.) are expected to have risen 32% to £57.5m (£43.5m), while the group’s adjusted pre-tax loss was down 30% at £2.1m (£3.0m).
FireAngel's principal products are connected smoke alarms, CO alarms, heat alarms and accessories. The group has an extensive portfolio of patented intellectual property in Europe, the US and other selected territories.
Executive Chairman John Conoley stated that:
"The expected FY22 result represents an outstanding performance set against the unprecedented macro circumstances. Whilst the reported result will not be what we had set out to achieve, the underlying numbers demonstrate the strong progress made in line with our ambitions outlined at the time of the Company's fundraising in H1 2021.
Societal and regulatory development continues to drive demand for our products. Our continuing focus on self-help pleasingly shows a resilience in overcoming a wide range of macro headwinds to leverage this demand.
The Board expects additional significant improvement in our financial journey in 2023, positioning the Group for further progress against our strategic plans."
Analyst Opinion – there will be a strong demand for the group’s products
Ahead of the group’s finals being reported in April, analyst Rob Sanders at Shore Capital Markets is estimating that the current 2023 year will see sales of £64.0m, with adjusted pre-tax losses falling impressively to just £0.9m.
Sanders sees the big turnaround showing through next year, with sales estimated at £74.0m and adjusted pre-tax profits coming out at £2.8m, worth 1.4p in earnings per share.
Conclusion – a penny-stock doubler
On these estimates FireAngel shares could easily double from the current 8p within the next year or so.