FireAngel Safety Technology Group, a home-safety products supplier, experienced a steep decline in shares on Tuesday following the announcement of a widened pretax loss. The company does not anticipate regaining momentum this year.
As of 0727 GMT, shares had dropped by 0.75 pence, or 24%, to 2.40 pence.
FireAngel Safety Technology Group reported a pretax loss of £4.0 million ($4.9 million) for the first half of the year, compared to a loss of £1.7 million in the previous year. This decline in profitability was primarily attributed to supply-chain issues in the previous year that led to lower production and limited supply to end customers, resulting in a 16% decrease in revenue to £21.4 million.
To return to profitability, the company is undertaking a strategic review that encompasses price increases, reductions in operating costs and inventory, as well as board restructuring. The strategic plan could potentially involve the sale of the company.
Due to the loss incurred during the first half of 2023, FireAngel Safety Technology Group will not be proposing an interim dividend payment for this year. The company acknowledges a significant loss of momentum over the past nine months, which is not expected to be recovered within the current year. However, the benefit of further cost management initiatives is anticipated in the fourth quarter and throughout 2024.