Record profits for smoke alarm supplier Sprue
COVENTRY-based Sprue Aegis, one of Europe’s leading home safety products suppliers, has announced record turnover and profits.
For the year ended December 31, 2014, revenue for 2014 increased by 36% to £65.6m (2013: £48.4m) helped by the £21.3m increase in sales into Continental Europe, largely due to growth in sales into France and to a lesser extent, Germany. Whilst UK Trade sales increased by 9%, total sales in the UK declined by 10% mainly due to a £2.0m decline in UK retail sales due to slower CO sales and some customer inventory reduction programs.
Profit from operations before a share-based payments charge of £0.2m and exceptional items increased by 89% to £10.4m (2013: £5.5m) reflecting strong operational leverage and scalability of the business, together with tight control over fixed costs. Return on sales before the share-based payments charge and pre-exceptional items increased significantly to 15.8% (2013: 11.4%). The group said its medium to long term target return on sales remained in excess of 20%.
Graham Whitworth, executive chairman, said the company had high hopes for the future following the extension on improved terms of its exclusive rights in Europe to distribute the products and brands of BRK Brands, part of Jarden Corporation, for an initial period of three years.
Jarden remains the key supplier to the group, supplying essentially all of the group’s smoke alarm and product accessory requirements.
“This agreement consolidates Sprue’s position as a leading home safety products supplier in Europe and the agreement is a good deal for the company and all stakeholders,” he said.
