Financial Highlights
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Group revenue of £26.0m (H1 2016: £25.9m) |
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Adjusted operating profit* of £1.5m (H1 2016: operating loss* £0.9m) |
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Gross margin pre-BRK distribution fee up by 6.2% to 31.7% (H1 2016: 25.5%) |
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Return on sales before share-based charge improved to 5.6% (H1 2016: (3.5%)) |
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Basic EPS improved to 2.8 pence per share (H1 2016: 1.3p loss per share) |
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Strong balance sheet, no debt and cash of £10.0m (30 June 2016: cash of £14.7m) |
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Total warranty costs in line with the Board's expectations with warranty provisions as at 30 June 2017 of £3.9m (30 June 2016: £5.7m) |
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Inventory reduced by 19% to £13.2m (30 June 2016: £16.3m) |
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Increased investment in new product development of £1.4m (H1 2016: £1.1m) |
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Declared interim dividend maintained at 2.5p per share (H1 2016: 2.5p per share) |
Operational highlights
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Implementation of transformational manufacturing and supply agreement with Flex progressing to plan and on track |
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Following receipt of notice to terminate from Newell, Sprue continues to work towards exiting both the distribution and manufacturing agreements on 31 March 2018 |
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New customer wins across UK Retail, Trade and EMEA |
Post-period end highlights
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Partnership with SmartThings to certify the FireAngel Z-wave smoke and heat alarms as “Works With SmartThings” devices for use with the SmartThings platform |
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Launch of Europe's first domestic battery powered gas alarm |
Graham Whitworth, Executive Chairman of Sprue Aegis, commented:
“I am pleased to report the strong progress made in the first half, highlighted by our return to profitability. We are fast transforming into a lean, technology driven safety products business in the high growth potential connected home safety products market.
“Our manufacturing and supply agreement signed with Flex on 31 March 2017, combined with a continued focus on both product innovation and promotion of our FireAngel brand, will act as a catalyst to further exploit existing markets, alongside broadening our current product range and geographic reach.
“We remain hugely optimistic about the Group's growth prospects and believe that our core strategic initiatives will fundamentally transform our business over the coming years.”