FireAngel Safety Technology Group plc's (LON:FA.) Profit Outlook

We feel now is a pretty good time to analyse FireAngel Safety Technology Group plc's (LON:FA.) business as it appears the company may be on the cusp of a considerable accomplishment. FireAngel Safety Technology Group plc, together with its subsidiaries, designs, manufactures, markets, distributes, and sells home safety products and accessories in the United Kingdom, Continental Europe, and internationally. On 31 December 2020, the UK£25m market-cap company posted a loss of UK£8.7m for its most recent financial year. The most pressing concern for investors is FireAngel Safety Technology Group's path to profitability – when will it breakeven? We've put together a brief outline of industry analyst expectations for the company, its year of breakeven and its implied growth rate.

Check out our latest analysis for FireAngel Safety Technology Group

According to some industry analysts covering FireAngel Safety Technology Group, breakeven is near. They anticipate the company to incur a final loss in 2022, before generating positive profits of UK£2.5m in 2023. Therefore, the company is expected to breakeven roughly 2 years from now. In order to meet this breakeven date, we calculated the rate at which the company must grow year-on-year. It turns out an average annual growth rate of 98% is expected, which signals high confidence from analysts. If this rate turns out to be too aggressive, the company may become profitable much later than analysts predict.

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Underlying developments driving FireAngel Safety Technology Group's growth isn’t the focus of this broad overview, however, take into account that by and large a high forecast growth rate is not unusual for a company that is currently undergoing an investment period.

One thing we’d like to point out is that The company has managed its capital prudently, with debt making up 36% of equity. This means that it has predominantly funded its operations from equity capital, and its low debt obligation reduces the risk around investing in the loss-making company.

Next Steps:

There are too many aspects of FireAngel Safety Technology Group to cover in one brief article, but the key fundamentals for the company can all be found in one place – FireAngel Safety Technology Group's company page on Simply Wall St. We've also put together a list of essential factors you should further examine:

1. Historical Track Record: What has FireAngel Safety Technology Group's performance been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.

2. Management Team: An experienced management team on the helm increases our confidence in the business – take a look at who sits on FireAngel Safety Technology Group's board and the CEO’s background.

3. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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