Home safety firm looks to recovery after shares crash
HOME safety products supplier Sprue Aegis will be looking to investors for a financial lifeline today after more than half of its share value was wiped out on a disastrous day for the business.
The Coventry-based company’s shares crashed yesterday after it warned shareholders to expect losses by revealing conditions in its major markets in France and Germany had been worse than first thought.
At the close of trading last night, 53.8% had been wiped off the company’s share value as investors reacted badly to the news.
Early trading this morning is a little more positive, with the shares up almost 1%, however, it still has a lot to do to restore the faith of investors.
The company, best known for its smoke alarms, said it was trying to minimise the loss – which could be almost £2m – by implementing reductions in overhead.
In a statement to the London Stock Exchange yesterday, the firm said: “Challenging trading conditions in France, principally due to overstocking, and weaker sales in Germany, due to product certification delays, are likely to significantly adversely impact the group’s expected results for this year.
“Consequently, the board has revised its guidance for the full year 2016. Subject to no major changes in exchange rates, the board now expects a first half operating loss of approximately £1.9m (which includes a restructuring charge of £0.2m as a result of reducing certain fixed overheads).”
