AGM Statement

RNS Number : 7182C

Sprue Aegis plc

30 June 2016

 

30 June 2016

Sprue Aegis plc

("Sprue", the "Company" or the "Group")

AGM Statement

Sprue (AIM: SPRP), one of Europe's leading home safety products suppliers, is holding its Annual General Meeting today at which Graham Whitworth, Executive Chairman, will make the following  statement:

European product certification received

Further to its announcement on 4 May 2016, the Company confirms that it has received the formal certification paperwork for its two European products containing a Panasonic battery.  The Group expects to commence shipment of the products, namely the ST622 and the ST630, into Germany in the second half of 2016 as planned.

Trading update

I am pleased to announce that trading so far this year is slightly ahead of management's expectations with improved sales, in particular, in the UK Retail and the European business units.  As such, and subject to no further major movements in exchange rates, the Board expects the Company's operating loss* in the six months ending 30 June 2016 ("H1 2016"), including the impact of the EU Referendum result on exchange rates, to be slightly lower than the £1.9m operating loss* previously indicated.

The Board will provide a further update on trading for H1 2016 by the end of July 2016.

Non-Executive Directors' review

Further to the announcement on 18 April 2016, the Company confirms that the Non-Executive Directors have undertaken a detailed review of the operational controls and processes within the business with a resultant set of proposals, the introduction of which will be led by Neil Smith, Group Chief Executive. 

In addition, on an on-going basis, the Non-Executive Directors will review progress against an action plan to be developed by Neil Smith.

The Non-Executive Directors have also now instigated a broader strategic review of the business, the outcome of which is likely to lead to some further realignment of responsibilities within the Company, to ensure that it operates in a more effective way in future.  A further announcement will be made in due course.

*Operating profit / loss is stated before the impact of share based payments charge but after a £0.2m restructuring charge to reduce fixed costs

- Ends -

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                                                                                                                       020 7601 6100

Tom Griffiths    

Notes to Editors

About Sprue Aegis plc

Sprue's mission is to protect, save and improve our customers' lives by making innovative, leading edge technology simple and accessible.

Sprue is one of the market leaders in the European home safety products market.  Its principal products are smoke alarms and CO alarms and accessories and the Group has an extensive portfolio of patented intellectual property. Sprue has patented its technology in Europe, the US and other selected territories. 

The introduction of new technologically advanced products and new safety products legislation in the UK and in Europe, and increasing levels of awareness of the dangers of smoke and CO, continue to drive sales.

Sprue manufactures CO sensors at its subsidiary, Pace Sensors for use in its CO alarms.  All other manufacturing and product assembly is outsourced to two principal third party contract manufacturers in China, one of which is Newell Brands which owns 23.6% of the Group and Pace Technology which is independent from Newell Brands.

Sprue enjoys a leading sales footprint in UK Retail and the UK's Fire & Rescue Services.  The Group also supplies the UK's Utility and Leisure sector which includes customers such as British Gas and Scottish Gas and has a well-established but relatively low market share of the UK Trade sector.   Sprue has a rapidly growing business in Continental Europe mainly selling through a network of independently owned third party distributors

The Group has won a number of prestigious Sunday Times Virgin Fast Track 100 Awards, which recognises the 100 fastest growing companies in the UK.  Sprue's head office is in Coventry and it has a second office in Gloucester.   Warehousing is located in Cambridge and Gloucester

Sprue's range of products is comprehensive, allowing the Group to tailor the range of smoke alarms, CO alarms and accessories to suit its customer needs at various price points under the following brands:

Ø FireAngel.  A market-leading and innovative battery operated alarm principally targeted at UK Retail and UK F&RS

Ø AngelEye.  Launched in 2012, Sprue sells smoke alarms and CO detectors principally into the French market under the AngelEye brand and to Sainsburys in the UK.  AngelEye has become a leading brand targeted at the DIY channel in France

Ø SONA.  A new, low power mains powered range of smoke and heat alarm products plus CO detection that are market leading and which can be wirelessly interconnected with up to 50 products on a single network

Ø FireAngel Pro.  Mains-powered smoke alarm with a 10 year, sealed for life lithium battery back-up.  Modern design, quick fitting, tamper-proof mounting plate which locks the alarm head securely in place.  Mounting plate has wide, easily accessible connection to the mains feed. Cable knock-out allows for compatibility with YT2 cable trunking

Ø Pace Sensors.  CO sensors used within Sprue's CO products are developed by Sprue and Pace Sensors, Sprue's wholly owned subsidiary in Canada. Pace Sensors' CO sensors are used within all FireAngel, AngelEye and Pace Sensors CO detectors and certain First Alert branded CO detectors

Sprue has the exclusive rights to distribute the products and brands of BRK Brands Europe Limited (a subsidiary of Newell Brands) in Europe namely, First Alert, BRK and Dicon.  First Alert is one of the leading safety products brands in North America.

For further product information, please visit:  www.sprue.com.

 

END

 

 

AGMPGUBCQUPQGMB