FireAngel Secures Standby Letter of Credit Facility

FireAngel Safety Technology Group PLC - Coventry-based home safety products maker - Agrees standby letter of credit facility with its bank HSBC UK Bank PLC and UK Export Finance, up to a combined sum of GBP3.5 million. The initial term of the facility is 12 months, and it would not add to company's net debt when deployed. The benefit of the facility is that it supports the variability of working capital arrangements with some suppliers, driven by longer lead times on components. FireAngel says it is a measure to offset any uncertainty in its supply chain and input prices.

The firm expects the facility to improve its creditor days. Net debt stands at GBP3.8 million at June 16, which is lower than previously expected to working the timing of working capital as production levels ramp up. FireAngel expects net debt levels to converge with expectations in the second half of the year.