Record results pave the way for smoke alarm group Sprue’s move to AIM
COVENTRY-based smoke alarm supplier Sprue Aegis is set to move up to the Alternative Investment Market (AIM).
The company has applied to the London Stock Exchange for permission to move its trading platform and the application is expected to be effective from April 30. 2014. It has also given the ISDX Growth Market notice of its intention to withdraw.
The announcement coincides with record annual results for the firm, which have seen turnover grow 28% to £48.4m (2012: £37.8m), with ore-exceptional operating profit rising 64% to £5.3m; reported operating profit was £4.9m (2012: £3.2m).
Basic earnings per share rose 83% to 11.87p (2012: 6.50p), with reported basic EPS up 67% to 10.85p (2012: 6.50p). The board has recommended a final dividend increase by 50% to 6p per share (2012: 4p).
Sprue has also announced its intention to raise approximately £8m by way of a new share placing. The fundraising will be used to provide additional working capital to support sales growth across its markets, particularly in France and to fund product development.
Sprue, formed in 1998, designs and sells innovative smoke and carbon monoxide alarms and other safety related products and accessories and is one of Europe’s largest suppliers of such, selling products under its own distinct brands of FireAngel, AngelEye and Pace Sensors based on its own in-house technology. Sprue is also the exclusive European distributor of the brands of BRK Brands Europe Ltd namely First Alert, BRK and Dicon.
It said it was looking to move to AIM to take advantage of its higher profile, broader investor base, greater liquidity and greater access to institutional investors for the placing and any future potential fundraising.
The proposed move follows Sprue’s successful defence in May 2013 of a hostile bid made by BRK Brands for those shares in the company that it did not already own. As part of the bid defence, the independent directors committed to seek shareholder support to move Sprue’s listing from ISDX to AIM within 12 months.
It said that having consulted with and subsequently secured broad shareholder support, the board decided to transfer to AIM in 2014 following the publication of its audited financial results for the year ended December 31, 2013.
Graham Whitworth, chairman and group CEO, said: “Despite the distractions of the hostile BRK Brands bid in early 2013, we are delighted to report record sales, record operating profit, record basic EPS up 83% to 11.87p per share and a 50% increase in the recommended final dividend of 6p per share. The expansion of our business in Continental Europe and the benefits of the multi-year contracts signed in 2012 are clearly evident in our results and the business is well placed for further growth.”
He said that with further new products to be launched in 2014 and beyond – including the ability to connect Sprue’s wireless home safety products over the internet – its competitive offering was set to significantly strengthen.
