Sprue Aegis plc
(“Sprue” or the “Company” or the “Group”)
Sprue (AIM: SPRP), one of Europe’s leading home safety product suppliers, announces the following trading update for the year ended 31 December 2017. The figures set out in this announcement are subject to audit.
For the year ended 31 December 2017, operating profit* is expected to be in line with market expectations at approximately £4.5m (2016: £2.1m) helped by a significant improvement in gross margin and pro-active management of the cost base on expected sales of £54.3m (2016: £57.1m).
2017 was a strategically pivotal year for the Group with the transition of Sprue’s own product manufacturing away from Newell Brands to Flex in Poland and the sourcing of replacements to the BRK products from a leading Far East based supplier. The Board is pleased with the progress made and expects both production and the sourcing of alternative products to commence in April this year.
The Company expects to announce its audited final results for the year ended 31 December 2017 in late March 2018.
Graham Whitworth, Executive Chairman of Sprue, commented:
“2017 saw a significant improvement in gross margin with operating profit* more than doubling to £4.5m, albeit against a backdrop of lower sales than anticipated.
The transition of manufacturing to Flex in Poland and the sourcing of products from a leading Far East supplier are on track. We are excited about becoming independent from Newell Brands from 31 March 2018 and believe that 2018 is set to be a transformational year for the Group.”
*Operating profit of £4.5m is stated before share based payments charge of £0.4m (2016: share based payments charge of £0.6m) and after exceptional items of £nil (2016: £0.2m exceptional restructuring charge)
For further information, please contact:
|Sprue Aegis plc||02477 717700|
|Graham Whitworth, Executive Chairman
Neil Smith, Group Chief Executive
John Gahan, Group Finance Director
|Stockdale Securities||0207 601 6100|
|Vigo Communications||020 7830 9700|
|Jeremy Garcia / Fiona Henson / Emma Lord|
Notes to Editors
About Sprue Aegis plc
Sprue is one of the leaders in the European home safety products market and its range of products can be connected over the internet including smoke alarms, CO alarms and accessories.
The Group has its own extensive portfolio of patented intellectual property in Europe, the US and other selected territories. Products are sold under Sprue’s leading brands of FireAngel and AngelEye.
Sprue’s mission is to protect, save and improve its customers’ lives by making innovative, leading edge technology simple and accessible. For further product information, please visit: www.sprue.com