FireAngel Safety Technology Group PLC (LON:FA.) said its 2018 results would likely come in "materially below market expectations", sending its shares crashing.
The home safety product group said on Wednesday that fall was largely down to the cost of its transition into an independent technology-led business which delivers connected solutions that complement its core product range.
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The company, formerly known as Sprue Aegis, said it has been working alongside its manufacturing partner to fully optimise production levels, which are now delivering increased monthly product output in line with its forecast needs.
However, the extended time to optimise production has impacted the delivery of certain high margin products and added short-term costs, FireAngel said.
FireAngel also said that core product sales within its UK retail and German trade segments had only recently recovered to “acceptable levels” and are expected to provide further positive momentum in 2019.
The safety firm said that Scottish legislation which has been delayed by three months is now expected to be introduced during the first half of 2019. This new legislation, which requires the retro installation of connected smoke and heat alarms and a CO detector into all domestic properties in Scotland, is expected to deliver incremental sales growth in 2019.
FireAngel added that core product sales in UK retail continue to recover, both through traditional retailers and with growth through digital channels. In addition, German trade sales have also started to recover during the final quarter of 2018 which will provide further momentum in 2019.
Shares in the company were 23.6% down at 34p in mid-morning trade.