LifeSafe (LIFS) , a fire safety technology business, released its interim results for the six months ended 30 June 2023 following its listing on AIM just over 12 months ago.
In H1 2023, LifeSafe's revenue reached £2.9 million, driven by strong sales in the UK and the US of its eco-friendly fire extinguishing products. Gross profit increased to £1.7 million, with a gross margin of 57.8%, meeting the Board's expectations despite currency fluctuations.
LifeSafe made an underlying loss before interest, tax, depreciation and amortisation of £760,000.
Cash and cash equivalents at 30 June 2023 were £24,000. In August 2023, £1.21 million was subsequently raised through a placing, share subscription and retail offer. Net debt at 30 June 2023 stood at £440,000.
In January 2023, LifeSafe introduced Lithium Thermal Runaway Fluid at Intersec, a premier event for emergency services, security, and safety. In April 2023 and July 2023, it launched the StaySafe All-in-1 fire extinguisher in the UK and the US, respectively, designed to handle ten fire types, replacing the previous StaySafe 5-in-1 model.
Looking ahead, LifeSafe said it is on track to become EBITDA profitable on a monthly basis during Q4 2023.
In a separate statement, LifeSafe announced that it has entered into an exclusive strategic partnership with Wormald Fire & Safety to distribute its new lithium-ion fire extinguishing fluid, Thermal Runaway Fluid, which is fluorine free.
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The results reflect significant demand for LifeSafe’s products, with sales soaring in both the US and UK. The partnership announced with Wormald Fire & Safety for LifeSafe’s fluorine-free fluids is well aligned to meet upcoming Australian legislation banning PFOA-containing fire-fighting foam.
Strong H1 sales in the UK for LifeSafe’s All-in-1 fire extinguisher can in part be explained by the increasing need for a solution to lithium battery fires, caused by the growing prevalence of lithium batteries in various devices and industries worldwide. As the extinguisher can tackle lithium-ion battery fires, it offers a comprehensive solution to a problem that is becoming more urgent by the day, with the US alone reporting at least 25,000 incidents of fire or overheating in lithium-ion batteries over a five-year period.
Wormald Fire & Security entering into a distribution agreement with LifeSafe for its fluorine-free liquids in Australia is well-timed in light of the upcoming legislation that aims to ban PFOA-containing fire-fighting foam in this region. Similar legislation will also be seen in Europe and the US, opening up new market opportunities for LifeSafe.
Overall, with the emergence of new market opportunities and notable sales growth of LifeSafe’s products, the company is well-positioned to generate value for its shareholders.
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