Sprue Aegis improves turnover and profit
By BFN News | 09:38 AM | Tuesday 24 April, 2012
Sprue Aegis saw turnover increase by 11% to £33.3m for the year to end of December with BRK Brands Europe products available to Sprue for the full twelve months compared to nine months in 2010.
In the second half of the year, the Group suffered from the withdrawal of NF certification (a French product approval standard) on key products in France and had to resolve a number of legacy product warranty issues in Germany.
The combined effect of these two issues reduced revenue and profit growth in the second half which has traditionally enjoyed higher sales than the first half.
Despite lower than expected turnover, careful fixed cost management allowed the Group to deliver double digit operating profit margin of 10.4% (2010: 10.3%) and a 23% increase in basic EPS to 7.66p per share (2010: 6.25p).
The basic EPS also benefited from tax credits on development costs which helped reduce the Group's net effective tax rate to 20.0% (2010: 27.0%).
Underlying gross margin before inclusion of the BRK distribution fee showed solid progress, increasing to 44.6% (2010: 42.1%).
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