For the year ended 31 December 2017, operating profit* is expected to be in line with market expectations at approximately £4.5m (2016: £2.1m) helped by a significant improvement in gross margin and pro-active management of the cost base on expected sales of £54.3m (2016: £57.1m).
2017 was a strategically pivotal year for the Group with the transition of Sprue's own product manufacturing away from Newell Brands to Flex in Poland and the sourcing of replacements to the BRK products from a leading Far East based supplier. The Board is pleased with the progress made and expects both production and the sourcing of alternative products to commence in April this year.
The Company expects to announce its audited final results for the year ended 31 December 2017 in late March 2018.
Graham Whitworth, Executive Chairman of Sprue, commented:
“2017 saw a significant improvement in gross margin with operating profit* more than doubling to £4.5m, albeit against a backdrop of lower sales than anticipated.
The transition of manufacturing to Flex in Poland and the sourcing of products from a leading Far East supplier are on track. We are excited about becoming independent from Newell Brands from 31 March 2018 and believe that 2018 is set to be a transformational year for the Group.”