Home safety supplier Sprue warns of weaker H2 after record H1

COVENTRY-based Sprue Aegis, a leading supplier of home safety products, has said that the second half of the year is unlikely to be as strong as the first but that full year results are likely to be in line with expectations.

The company expects the first half of the year to very strong, with a prediction of record sales and operating profit due to good business in France.

In the firm’s AGM statement, chairman Graham Whitworth said: “The first half of 2015 is expected to be another strong period of trading for Sprue, reflected in record sales and operating profit.

“Whilst the strength of sterling against the euro has continued to create significant headwinds, sales into France have continued to perform strongly and, in total, H1 2015 sales into Continental Europe are likely to be significantly ahead of both last year and management expectations.  Sales by the other four business units are expected to perform broadly in line with management expectations and last year.

“The board expects H2 2015 sales and operating profit to be lower than H1 2015 and the results for 2015 to be line with market expectation.”  

In conjunction with joint venture (CICAM) partner Jarden Corporation, the group’s key supplier, and the relevant certification agencies, Whitworth said planning was under way to relocate CICAM’s activities and to obtain the relevant approvals and certifications for the new factory.  He said the board understood that CICAM had already entered into a lease on another building near to its existing site.
 
Beginning this month, Sprue has also announced that it will supply a new range of smoke and carbon monoxide detectors and accessories, under the brand of AngelEye, into approximately 600 stores of a leading UK supermarket chain. This is expected to strengthen considerably both its UK retail sales and its market share in the sector.

The board said it would provide a further trading update in mid July.