Positive news at last for shareholders of smoke alarm supplier

COVENTRY-based smoke alarm and home safety products firm, Sprue Aegis told shareholders today that first half losses are not expected to be as big as first thought.

The firm was forced to apologise to shareholders in April after its shares went into meltdown following a profit warning due to warranty issues with its devices.

The company said it had identified a problem with certain batteries supplied by a third party supplier that may cause a premature low battery warning chirp in certain of its smoke alarm models sold in the UK and in Continental Europe.

The problem forced the company to increase its warranty provision by £5.5m.

In an AGM statement, executive chairman Graham Whitworth said: “I am pleased to announce that trading so far this year is slightly ahead of management’s expectations with improved sales, in particular, in the UK Retail and the European business units.  

“As such, and subject to no further major movements in exchange rates, the board expects the company’s operating loss in the six months ending June 30, 2016, including the impact of the EU Referendum result on exchange rates, to be slightly lower than the £1.9m operating loss previously indicated.”

He said further details would be provided by the board when it issued a first half trading update at the end of July.