Sprue (AIM: SPRP), one of Europe’s leading home safety products suppliers, announces that the Company has reached agreement with the Group’s third party Chinese battery manufacturer on a warranty claim regarding the supply of its batteries that potentially cause a premature end of life low battery warning chirp in certain of the Group’s smoke alarms, details of which were announced by the Company on 18 April 2016. The Company wishes to stress that this is not a safety critical issue.
The financial benefit from the warranty claim will be provided by the manufacturer in the form of free of charge replacement batteries and is expected to be worth around £0.1m in 2016. The remainder of the warranty claim is expected to be recovered over the next two years depending on the Group’s battery purchase volumes from the manufacturer.
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