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 theoperational 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