FireAngel Safety Technology Group plc
Climate Impact & Sustainability Data (2011 to 2013, 2019)
Reporting Period: 2011 to 2013
Environmental Metrics
Climate Goals & Targets
Environmental Challenges
- Exchange rate risk
- Product defect
- Certification delays
- Dependence on suppliers/manufacturers
- Technological risks
- Intellectual Property protection
- Dependence on key executives and personnel
- Inability to contract with customers on the most favourable terms
- Regulation
- Market risks
- Reputation
- Transfer pricing
- Employees’ IP
- Grant of intellectual property rights under British Gas Framework Agreement
- Ionising radiation products
- Economic conditions
- Force majeure
- Taxation
Mitigation Strategies
- Hedging exchange rate risk through forward contracts
- Insurance against product defect claims
- Substantial experience of the certification process
- Appointment of a new supplier of smoke alarms in China
- Significant investment in research and development
- Independent review of Intellectual Property
- Bonus scheme to incentivize employees
- Careful assessment of credit risk for new customers
- Monitoring gearing ratio and adjusting dividend payments
- Renewal of Distribution Agreement with BRK Brands
- Regular visits to suppliers' factories
- Annual independent audit checks by various regulators
- ISO9001:2008 Quality Management System accreditation
- Established transfer price policy
Supply Chain Management
Climate-Related Risks & Opportunities
Reporting Standards
Frameworks Used: IFRS
Certifications: ISO9001:2008
Awards & Recognition
- PLUS ‘Company of the Year’ in both 2010 and 2012
Reporting Period: 2019
Environmental Metrics
ESG Focus Areas
- Employee experience and satisfaction
- Supporting our community
- Health, safety and the environment
- Wider stakeholder engagement
Environmental Achievements
- The only alarms with proven low carbon footprints producing on average 95 per cent less carbon dioxide compared with other leading mains-powered alarms.
Social Achievements
- Regularly donate to various charities, including a number of CO and firefighter charities.
- Work closely with local universities to give presentations and support students with their career progression including, where appropriate, work experience in the Group.
- Conducts employee opinion surveys to receive employees’ feedback on all aspects of employment with the business.
- Senior managers meet regularly with employees to update them on the Group’s performance and to discuss business-related issues.
Governance Achievements
- Board changes to align to future challenges and opportunities
- Reviewed the extent of compliance with the Quoted Companies Alliance Corporate Governance Code for small and mid-size quoted companies
Climate Goals & Targets
Medium-term Goals:
- Complete the transition of the business to become a provider of safety-critical connected home solutions
Short-term Goals:
- Improve gross margin
Environmental Challenges
- Results continue to be negatively impacted by legacy issues as a result of certain historically poor internal processes.
- Prolonged weakening of sterling against the US dollar in 2019 significantly increased the sterling cost of components used in the Group’s products.
- Higher costs and delayed product availability at the Group’s smoke and connected devices manufacturing partner
- Change in sales mix towards lower margin UK Retail sector
- Impact of sales growth on the Company’s processes
- COVID-19 impacted the Company outlook in the short term
Mitigation Strategies
- Addressing legacy issues and taking action to improve gross margins
- Forward hedging policy which aims to mitigate the risk of currency fluctuations
- Comprehensive gross margin improvement plan being rolled out
- Open offer and placing to raise approximately £6.1 million to strengthen the balance sheet
- Placing a number of employees on furlough and further headcount savings through a reassessment of R&D project deliverables
- Extending the furlough period for some employees and placing additional employees on furlough
- Executive Directors agreed to extend their reductions of 10% of salary for a further two months and senior managers have volunteered to reductions for two months
- Applied for a Coronavirus Large Business Interruption Loan
Supply Chain Management
Climate-Related Risks & Opportunities
Sustainable Products & Innovation
- FireAngel Specification and FireAngel Pro ranges