Profits set to double at home safety products supplier
Home safety product supplier Sprue is forecasting improved full year profits after undergoing what it describes as a pivotal year.
In a trading update for the year ended December 31, 2017, the Coventry-based firm said operating profit was expected to be in line with market expectations at approximately £4.5m (2016: £2.1m).
It said it had been 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).
The group said 2017 had been a strategically pivotal year for the business 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 said it was pleased with the progress made and expected both production and the sourcing of alternative products to commence in April this year.
Graham Whitworth, Executive Chairman of Sprue, said: “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.”
The company expects to announce its audited final results for the year ended December 31, 2017 in late March 2018.