Sprue Aegis Share Discussion Threads

[speedsgh] 15/5/2015 10:02

I personally like the expectation management that SPRP employs in its announcements. Rather under-promise + over-deliver than vice versa.

[pj 1] 15/5/2015 09:35

Thanks Dave. Guess that confirms it.

[davebowler] 15/5/2015 09:33

Westhouse;


Sprue Aegis – Two positive developments

Sprue has secured £2.9m of the £3.2m total DCLG funding to supply smoke and carbon monoxide detectors to the UK’s Fire & Rescue Services to be fitted into privately rented properties across the country in 2015. All 46 Fire & Rescue Services in England are receiving smoke and CO alarms to distribute according to the number of privately rented properties in their area. New regulations requiring landlords to install smoke and carbon monoxide alarms in their properties expected to come into force in October 2015.

In a separate announcement Sprue has been appointed as the master UK distributor by Innohome Oy, a company based in Finland, to sell Innohome’s Stove Alarm and multi-award winning Stove Guard cooking safety products leveraging Sprue’s well established UK customer base.

In our note (Europe Good, euro bad – 27 April 2015) following the 2014 results we had highlighted the opportunity with respect to the UK Fire & Rescue Services so it is encouraging to see this has been borne out. The Innohome solutions will be a useful addition to Sprue’s range of safety products and can provide some increased sales in due course. We make no changes to our forecasts or 400p target price and view the recent share price weakness as a good buying opportunity.

[pj 1] 15/5/2015 08:54

Yes, but 2016?

I suspect the DCLG has been included in analysis figures, maybe Innohome's has not?

[macarre] 15/5/2015 08:42

Apparently none of them likely to make a significant contribution to 2015 numbers though.

[reddave999] 15/5/2015 08:32

Couple of decent orders announced today:)

[stegrego] 12/5/2015 18:42

That makes it exactly the same difficulty as it always has been without that info. IE nothing has changed.

[pyemckay] 12/5/2015 17:55

I see richard beddard was trying to get information from the company with regards to how much of their own products are sold and how much are distibuted from Jarden group. They are not giving out that information. That makes it harder to value imo

[the big fella] 12/5/2015 16:37

As we saw from the results a there is nothing wrong with the business and trading buoyant. The opportunity in Germany and France is enormous. Unfortunately the exchange rate headwind is blowing a gale right now

[reddave999] 12/5/2015 16:34

I agree with you gorilla36 i bombed big time on this and Shoe Zone it looks like whatever I've got left is going back in the building society.

[pyemckay] 12/5/2015 16:30

The annual report was released today as per RNS. There may possibly be something in it that wasnt as clear at result time.

[the big fella] 12/5/2015 16:28

Liquidity does work both ways so it can rise just as fast

[the big fella] 12/5/2015 16:20

I will look to top up the Isa at some point but will wait for the dust to settle

[seans66] 12/5/2015 16:15

Topped up a week too soon!

[the big fella] 12/5/2015 16:13

Exchange rate concerns as since the election it has gone against them.

[speedsgh] 12/5/2015 16:03

... apparently on very little volume (unless there are any large trades to be reported after the close).

[reddave999] 12/5/2015 16:01

What's happening here then heading south again!

[rcturner2] 07/5/2015 11:52

Cheers guys, I like what I see here. I may well invest in the future.

[the big fella] 07/5/2015 11:49

Yes I do recall that. I fortunately managed to get my initial 100k at around the 12p mark from memory :)

[glasshalfull] 07/5/2015 11:27

RCTurner - I've got The Big Fella to thank (& which I've done so on many occasions).
Brian mentioned the company on a thread while it was listed on PLUS markets. We fought over stock in the low 20's from memory :-) At that time I was aware of FireAngel in a professional capacity & following extensive research & contact with the management team was greatly impressed by their product innovation & execution...& have continued with this positive view through the years. They engineered the fantastic deal with Jarden & have coped admirably with the many challenges over the period.

When you find a company with an excellent "moat" which is well run, then it pays to hold on tightly to the equity. I continue to review Sprue as I do all my investments and remain just as bullish. The dividend yield on my initial purchase price is approaching 40% which says it all.


Regards
GHF

[the big fella] 07/5/2015 09:09

Thanks Gordon. With the exchange rate currently 1.34 and falling things are starting to go our way again. It's certainly worth keeping an eye on.

[rcturner2] 07/5/2015 08:50

GHF, just out of interest how did you become a shareholder, was there a private placing at some point?

[glaws2] 07/5/2015 08:43

GHF - rarely are thread headers so frequently and comprehensively updated - many thanks.

[glasshalfull] 06/5/2015 18:29

Finally got round to updating the thread header which contains new forecasts, financial highlights & indication of the future drivers for growth.

It appears that 2015 PBT estimates have been reduced marginally following a significant uplift in the turnover forecasted which is raised to £74.9m (from £66.1m) but euro weakness has reduced PBT forecasts to £10.2m (from £10.5m). It would appear that the covering broker Westhouse have factored in an exchange rate of E1.39/£ moving forward with Sprue's result announcement providing an indication on the strength of results.

If one considers that the exchange rate was E1.18/£ in 2013 with Sprue's European turnover now 60% of total turnover it shows how creditable 2014 results were and how robust the company are in 2015 & beyond in light of this 18% adverse currency move they have to contend with.

On the back of the weak Euro it appears that Westhouse have reduced earnings forecasts to 18p in 2015 and 17p in 2016 before resumption of growth in 2017 & EPS of 23.3p.

The other issue that appears to have concerned investors surrounds the announcement in results concerning Jarden's Chinese final assembly line CICAM and potential for it to be relocated later this year or in 2016.
I should mention that I was invested in Sprue when the factory was moved to the current location 5-years ago and recall that it was a non-event as the factory has planned closures annually...I think around Chinese New Year as an example...and I'm sure any decision would be taken to ensure zero impact.

With the ramping up of capacity significantly in 2014 to deliver for the unprecedented French demand I'd actually envisage that any factory move may be in Sprue's interests and the planning on any move or new factory would provide for a facility more in-keeping with the considerable development of Sprue's product range over the last 5-years and to where it stands today.

As mentioned, I've included a brief summary in the header of potential developments which indicate that Sprue is not dependent on the French market for future growth.

Having been invested here for 7 years or so I have considerable faith in the management team and welcome Neil Smith into the role of CEO and John Sutherland as NED. I'm sure that Sprue will continue to deliver and congratulate them & employees on producing yet another set of fantastic results.

Kind regards,
GHF