DJ Sprue Aegis plc Trading Update
Sprue (AIM: SPRP), one of Europe’s leading home safety products suppliers, today issues a trading update ahead of the release of its unaudited interim results for the six months ended 30 June 2016 (“H1 2016”), which are expected to be announced in late September 2016. All figures set out in this announcement are subject to review by the Group’s auditors.
The Board expects sales for H1 2016 to be approximately GBP25.9 million (H1 2015: GBP56.5 million) and to report an operating loss* of GBP0.9 million (H1 2015: GBP9.0m operating profit*). Due to stronger than expected trading in June 2016, the operating loss* for H1 2016 is significantly lower than the Board’s expectations as previously announced in the Company’s final results on 26 April 2016.
While total sales in H1 2016 were GBP30.6m lower than in H1 2015, sales into France in H1 2016 declined by GBP33.7m compared to H1 2015, which was partially offset by growth in UK sales and at Pace Sensors.
Net cash at 30 June 2016 of GBP14.7 million (2015: GBP28.9 million) was adversely impacted mainly by the H1 2016 operating loss* and the GBP7.0m payment for buffer stock acquired in Q4 2015. Sprue remains debt free (30 June 2015: nil debt).
The Board is pleased to announce that at the time of the announcement of the interim results for the six months ended 30 June 2016, it intends to declare a maintained interim dividend of 2.5 pence per share.
Outlook
The Company continues to invest in product innovation and technology to expand and improve the Group’s product range and enhance its competitive position in each of the markets that it serves.
Subject to there being no further net adverse foreign exchange rate movements, the Board expects Sprue’s sales and operating profit for the year ending 31 December 2016 to be approximately GBP58.0 million and GBP1.9 million respectively.
A further update on trading will be provided at the time of the release of the Company’s H1 2016 results, which are expected to be announced in late September 2016.
*Operating loss is stated after a GBP0.2m restructuring charge (H1 2015: GBPnil) and before share based payments charge of GBP0.3m (H1 2015: GBP0.2m)
The Board expects sales for H1 2016 to be approximately GBP25.9 million (H1 2015: GBP56.5 million) and to report an operating loss* of GBP0.9 million (H1 2015: GBP9.0m operating profit*). Due to stronger than expected trading in June 2016, the operating loss* for H1 2016 is significantly lower than the Board’s expectations as previously announced in the Company’s final results on 26 April 2016.
While total sales in H1 2016 were GBP30.6m lower than in H1 2015, sales into France in H1 2016 declined by GBP33.7m compared to H1 2015, which was partially offset by growth in UK sales and at Pace Sensors.
Net cash at 30 June 2016 of GBP14.7 million (2015: GBP28.9 million) was adversely impacted mainly by the H1 2016 operating loss* and the GBP7.0m payment for buffer stock acquired in Q4 2015. Sprue remains debt free (30 June 2015: nil debt).
The Board is pleased to announce that at the time of the announcement of the interim results for the six months ended 30 June 2016, it intends to declare a maintained interim dividend of 2.5 pence per share.
Outlook
The Company continues to invest in product innovation and technology to expand and improve the Group’s product range and enhance its competitive position in each of the markets that it serves.
Subject to there being no further net adverse foreign exchange rate movements, the Board expects Sprue’s sales and operating profit for the year ending 31 December 2016 to be approximately GBP58.0 million and GBP1.9 million respectively.
A further update on trading will be provided at the time of the release of the Company’s H1 2016 results, which are expected to be announced in late September 2016.
*Operating loss is stated after a GBP0.2m restructuring charge (H1 2015: GBPnil) and before share based payments charge of GBP0.3m (H1 2015: GBP0.2m)