Sprue Aegis Share Discussion Threads

[3800] 09/4/2014 10:08

Not to sure where you have found any new forcasts kalkanite . "I see that Stocko has expected EPS for 2013 & 2014 upped to 11.4p & 16.5p respectively. Does anyone have the update notes?" I too would like to see any updated notes but with the figures out this month any revision to 2013 before that seems unlikely to me, unless someone else knows otherwise of course.
3800

[speedsgh] 08/4/2014 21:39

Not surprised to see some profit taking after the rise in the past 12-18 months. Plenty more to play for here though imo. Most important will be the move to AIM opening up the company to a new raft of buyers (PI + II).

[kalkanite] 08/4/2014 21:07

There seems to be a seller in the background for the last few weeks feeding the buyers. Once this finishes I think we will see the share price start to appreciate.

[speedsgh] 08/4/2014 13:40

So that's a prospective PE of 12 for 2014. Seems rather ungenerous for such a growth stock. However I suspect that this anomaly may correct itself when 2013 numbers are confirmed in the forthcoming results + the proposed move to AIM happens in the current quarter. The market is supposed to be forward looking after all.

[kalkanite] 08/4/2014 13:18

I see that Stocko has expected EPS for 2013 & 2014 upped to 11.4p & 16.5p respectively. Does anyone have the update notes?

[davebowler] 25/3/2014 10:26

SPRUE AEGIS*
Buy













SPRP.L / 195.0p / £69.50m / TP: 250p













Event: Other























Westhouse;


Agreement with Intamac

Sprue has signed an agreement with Intamac to provide internet connectivity and remote monitoring of Sprue's wireless home safety products. Intamac is a leading "connected home" service provider and a trial in homes in the North East of England will commence shortly.

At this stage we are making no changes to any of our forecasts but view this as a potentially exciting new revenue stream for Sprue. We reiterate our 250p target price and Buy recommendation.

[glasshalfull] 25/3/2014 09:33

Exactly paxman.

Endless possibilities here and perhaps they will expand on existing partnerships with the likes of Baxi who I believe supply 10 million boilers into Europe and with Internet Of Thing (IOT) could potentially leverage Sprue's market leading position in radio technology to develop new innovations.

As you mention potential temperature control package or perhaps an alert system should a reading be too high.

Indications are that SPRP are looking to develop to the next level, to diversify into an assisted technology business. This could potentially lead them to develop products that also help people remain within home (vulnerable or elderly).

That's my take FWIW.

Regards,
GHF

[paxman] 25/3/2014 08:57

This is excellent news. If they can make themselves part of the IoT infrastructure then home owners or utility companies might pay Sprue annual fees for monitoring temperature so aiding energy usage and also relaying data around the home.

Conceivably if Sprue was valued as an IoT company then £4 a share on a p/e of 25-30?

[stegrego] 25/3/2014 08:09

The 'value' is that it keeps the products bang up to date.

[pj 1] 25/3/2014 07:57

Morning BB
I assume recurring Revs?

Totally lost as to the value though!

[battlebus2] 25/3/2014 07:08

Sprue Aegis Plc
Agreement with Intamac Systems Limited

25 March 2014

Sprue Aegis plc
("Sprue" or the "Company")

Agreement with Intamac Systems Limited ("Intamac") to provide internet
connectivity and remote monitoring of Sprue's wireless home safety products

Sprue is pleased to announce that it has signed an agreement with Intamac, a
leading "connected home" service provider, to provide internet connectivity and
remote monitoring of Sprue's wireless home safety products.

Sprue's "Connect Safe Home" product offering will use Intamac's established
cloud-based technology platform and operate under licence.

Using a smartphone, PC or tablet with an app which is being specifically
developed, Sprue's customers will be able to monitor remotely the status of
their wirelessly connected home safety products. A trial in homes in the North
East of England will commence shortly.

Graham Whitworth, Chairman and Group CEO commented: "This is an exciting
development for our business. For the first time, our customers will be able to
monitor remotely Sprue's wireless safety products in their homes (via the
Internet of Things). Revenue from the trial is expected to commence in the
second half of this year and we are excited about the potential of our Connect
Safe Home solution."

[glasshalfull] 24/3/2014 08:34

Back to SPRP ;-)

I believe the company are pencilling in 17th April 2014 for release of results.

Regards,
GHF

[glasshalfull] 22/3/2014 09:33

steg - Goodwin PLC (GDWN).

One of their subsidiaries are Esat Antennas..."market leader in the manufacture of bespoke high-performance radar antennas."



Good luck!

:-)


Regards,
GHF

[stegrego] 22/3/2014 09:24

If you find a firm that makes radars, please let me know, as there seems to be a massive need for them.

Almost all shares are 'under the radar' according to these boards and that's not to mention missing planes......

[pj 1] 21/3/2014 14:31

Really surprised there has been no share price movement here today. Maybe its still very much under the radars....

[speedsgh] 21/3/2014 10:45

"After consultation with the Company's major shareholders, the Board is pleased
to confirm that it will seek to transfer the Company's listing from ISDX to AIM
in the second quarter of 2014 following publication of the Company's final
results for the year ended 31 December 2013."

Next up final results. They were 23/4 last year. Will be looking keenly for size of increase of this year's dividend.

Then we can focus on the AIM move. Let's hope the markets hold steady in the interim so they can take advantage of the current positive sentiment towards IPOs.

[davidosh] 21/3/2014 08:25

It certainly falls nicely into place ahead of the AIM move as the uncertainty one way or the other would not have been good hanging over once more scrutiny comes in at a new listing.

It will also allow forecasts to be revised or at least give the additional potential kicker as a nice way to suggest probable upward revisions once full effect known based on 2014 results.

[pj 1] 21/3/2014 08:22

Dan Coatsworth Shares Mag

Westhouse ups forecasts for Sprue Aegis following Jarden renewal. 2015 adj PTP +6.9% to £10.9m. Price target now 250p (was 175p) #SPRP

[harrogate] 21/3/2014 08:02

I agree with the uncertainty point but I am not sure that we know that the above approved terms will actually improve forecasts. Obviously the reduced distribution fee is material but the others might mean the status quo on earnings with some cashflow benefit. Given both the operating performance and the share price performance I think it would be churlish not to assume that the management have done the best deal they could for the company. Onwards to the AIM move

[glasshalfull] 21/3/2014 07:57

Uncertainty removed & on improved terms .... plus additional benefits.

As part of the negotiations, Sprue has also secured improved manufacturing
terms from Detector Technologies Limited ("DTL"), a Jarden company, which
supplies Sprue's own-brand smoke alarms and other associated accessories:

* Improved credit terms equivalent to two months' purchases;

* Right to source products at a fixed GBP / USD exchange rate of US$ 1.62,
removing foreign exchange rate risk on these purchases which are currently
in USD; and

* Fixed product prices for two years from 1 January 2014.


This wasn't factored into forecasts so should result in improved forecasts from 2015 onwards.

Regards,
GHF

[pj 1] 21/3/2014 07:28

Looks good. Uncertainty removed! :-))

[battlebus2] 21/3/2014 07:05

Sprue Aegis Plc
Extension of exclusive distribution agreement w...

21 March 2014

Sprue Aegis plc
("Sprue" or the "Company")

Extension of exclusive European distribution agreement with BRK Brands Europe
Limited ("BRK Brands") and its ultimate parent company, Jarden Corporation ("Jarden")

Sprue is pleased to announce that it has entered into a three year extension to
its existing exclusive distribution agreement with BRK Brands and Jarden. The
extension, which is on improved terms, comes into effect from 1 April 2015,
when the existing distribution agreement expires.

Under the terms of the new agreement, Sprue has retained the exclusive rights
to distribute the products and brands of BRK Brands, namely, First Alert, BRK
and Dicon throughout Europe. The key terms of the agreement are as follows:

* Annual distribution fee (£4.2m payable currently) to be reduced to £3.5m,
£3.0m and £2.9m in calendar years 2015, 2016 and 2017 respectively; and

* Minimum term of three years to 31 March 2018 with twelve months' notice
required by either party to terminate the agreement. Unless terminated, the
agreement automatically renews on the same terms for further periods of
twelve months.

As part of the negotiations, Sprue has also secured improved manufacturing
terms from Detector Technologies Limited ("DTL"), a Jarden company, which
supplies Sprue's own-brand smoke alarms and other associated accessories:

* Improved credit terms equivalent to two months' purchases;

* Right to source products at a fixed GBP / USD exchange rate of US$ 1.62,
removing foreign exchange rate risk on these purchases which are currently
in USD; and

* Fixed product prices for two years from 1 January 2014.

Graham Whitworth, Chairman and Group CEO commented:

"We are extremely pleased to have extended our exclusive right to distribute
the BRK Brands products in Europe for a further three years from 1 April 2015.
This agreement consolidates Sprue's position as the leading home safety
products supplier in Europe and is a good deal for the Company and all
stakeholders."

[glasshalfull] 17/3/2014 18:07

themariner - I share your optimism (as I'm sure you're well aware ;-)

Difficult to place a price on SPRP's AIM admission & I won't even try.

OMIP made the same move from ISDX to AIM last year and were available in the 4-5p range in the weeks and months leading up to the move...they subsequently doubled on listing & then doubled again despite no material change to their business model/profitability. While they are a smaller cap company operating in an entirely different market, it demonstrated the potential for market re-rating on any ISDX company moving to AIM.

Back to SPRP.

10.9p EPS forecast for 2013, or 75% growth year on year with January's trading update confirming this.

Westhouse indicate a further 43.9% growth this year and 15.6p EPS (prospective PER 12.3 for 2014) & in 2015 a further 36.1% growth and EPS of 21.3p

With this significant growth I really don't believe it fanciful to suggest that the company should be trading on a PER of say 20 if not more...especially when you throw in cash generative qualities of the business, not to mention substantial cash balance & decent dividend yield....and then highlight the multiple business opportunities and potential growth from European legislation kicking in (French 2015 deadline) benefits from new SONA range, cost benefits from NANO CO sensor coming through, etc, etc.

I've not taken into account any benefits from potential negotiation of the Distribution Agreement with Jarden!

So, if we were to factor in a PER of say 20 and delivery as per forecasts...well, the price could conceivably double or more from the current range... if/when the market factors in 2015 forecasts as it's currently only valued on a PER of 9 per forecasts for 2015.

Kind regards,
GHF

[themariner] 17/3/2014 16:45

I am certainly revising my sell expectations - mainly because I think the forthcoming results will be very good, but also allowing for "clever" money to drive the share price somewhat in advance. Whether there could also be a further pop upon AIM admission will depend on where we get to just before and whether the markets are continuing to get excited about new listings, which they certainly are now.

Personally I see creep to 250p in advance of AIM & results (seems to be coming now)and with continuing support in markets, I see 300-325p as entirely feasible post AIM. The end of April FY results must deliver though and if the divi is listed too, this might add another 25p to these numbers?