FireAngel Safety Technologies (LON:FA.) shares fell as much as 30% on Monday after the home safety products developer warned that its annual results would likely fall short of expectations due to supply chain, currency issues and tough trading conditions on the UK high street.
The company, formerly known as Sprue Aegis, said it expects to swing to a first-half operating loss of around £1.8mln compared to a profit of £1.5mln in the same period a year ago, with sales expected to be around a third down on last year at £17.7mln. The company said it had been hit by a number of short-term transitional issues within its supply chain, the continued weakness of sterling against the dollar and difficult conditions in the UK retail market.
READ: Chairman gives up executive role at Sprue Aegis after tough year
Shares in FireAngel were down 29% in early afternoon trading.
The company, however, said it was "confident" of resolving supply chain issues and would introduce new products to support new and existing pipeline opportunities.
It added that it remains confident that the group’s ongoing transition from a hardware safety products provider to a more integrated safety solutions provider would underpin its medium to longer term expectations, supported by emerging legislative driven opportunities and a strong contract pipeline.