LifeSafe, (LIFS,) a fire safety technology business, released its final results for the year ended 31 December 2022, delivering a strong operational performance following its successful IPO and admission to AIM in July last year.
LifeSafe experienced rapid growth in 2022, with a significant increase in revenue to £4.0 million, ahead of market expectations. Gross profit increased to £2.3 million at a margin of 57.0%, up from last year's gross profit of £312,000 at a 46.6% margin. LifeSafe remains well-funded, with a net cash balance of £1.1 million as of 31 December 2022.
Operational highlights include the StaySafe 5-in-1 launch in February 2022 in the US through Amazon and Lifesafetechnologies.com, leveraging the success of being the top-selling fire extinguisher on Amazon Prime in the UK.
In a separate statement, LifeSafe announced the launch of its new StaySafe All-in-1 fire extinguisher, designed to tackle ten different types of fire. The evolution of this new fluid builds on the December 2022 launch of the company's industrial-focused Lithium Thermal Runaway Fluid, designed to permanently extinguish and prevent the re-ignition of lithium-ion battery fires.
Other news in the fire safety sector came from FireAngel (FA.,), which said it had signed two delivery and production agreements between three parties - FireAngel, its long-term manufacturing partner, and Techem Energy Services. The announcement comes off the back of the company announcing the successful delivery of the fourth development milestone of the agreement (now 41% complete) in March, which sees the delivery of a fully featured product board, supporting all working functions of its new generation smoke alarm (NGSA).
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An impressive result from LifeSafe, generating a sixfold revenue increase despite a worsening domestic and international macroeconomic landscape. The results reflect a significant demand for LifeSafe’s products, managing to tap into the key US market, generating over half of total revenues in FY22 (£2.4m). Investors pushed shares up 3% in early trade on the news.
The launch of LifeSafe's all-in-1 fire extinguisher is timely, as there is an 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.
There is likely to be a similar demand seen for FireAngel’s NGSA, with its additional safety and environmental features set to meet the increasing safety demands for landlords. Additionally, the likelihood of governments enforcing more stringent regulations for landlords may lead to an increase in sales for FireAngel. This is already evidenced in Scotland, where the government changed the law on fire and smoke alarms in February 2022, stating that all Scottish homes will need to have interlinked alarms.
Overall, with the emergence of new market opportunities and the notable sales growth of LifeSafe’s products, the company is well-positioned to generate value for its shareholders. FireAngel is likely to follow suit, as it becomes one step closer to commercialising its new generation smoke alarm in H2 FY24.
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