Sprue Aegis Share Discussion Threads

[dasv] 19/1/2015 10:57

updated RNS -

"The following replaces Sprue Aegis plc's announcement entitled "Trading update and Product and technology update" released at 7.00am today under RNS number 4460C. The original announcement referred to "Sterling weakening against the Euro" which should have read as "Sterling strengthening against the Euro". All other information remains unchanged. The full amended text is set out below."

[discodave4] 19/1/2015 10:26

Can anybody enlighten a newbie as to the significance (or otherwise) of the TS now including additional exceptional items of £0.6m from forecast year end profits (previous TS was just cost of AIM @ £0.5m, now up to £1.1m).Not currently invested, been watching for a good while.......will see how it looks at end of today before dipping my toe.ThanksGLDD

[shanklin] 19/1/2015 10:01

LOL ic2,

SPRP always uses the word "expects" in its TSs, presumably because what it is stating has not been audited.

In terms of the French market, there are obviously some uncertainties but SPRP seem to have done all they can to be well positioned for the new legislation.

All IMHO. Cheers, Martin

[pj 1] 19/1/2015 10:00

crossed posts with GHF!!

[pj 1] 19/1/2015 09:59

they have seen slower order intake in H2 because the French retail and DIY stores are fully supplied, and they can't be sure is the French will buy as many as hoped for before the new legislation=================================================

ic2-they stated @ Mello that they never expected the French to comply by the legislation date and that it would take 18/ 24 months for the majority % of households to become 'legal'. They also stated that they were the only supplier who had been able to ramp up and meet the (predicted)increase in Sales. I believe 80% target take up was expected but that is from memory so please take that with a small pinch of salt!
GHF is more knowegable than me but increased margins on new products are licking in and an unknown in Germany that soon oringinal supplies to large landlord/ housing associtions etc are T, or near, to end of life. These will in a way become recurring Revs, which are often oredred in 200,000 plus 'lots' to the relative landlord.

[saj3] 19/1/2015 09:58

Amended statement plus with 15m cash and a rising divi what's not to like!!

[glasshalfull] 19/1/2015 09:48

You must have read a different statement from me ic2...This is the 3rd one stating they are trading "ahead" of the preceding upgraded forecasts. Cash generation also excellent.

While future French growth is something of an unknown, legislation comes into force on 8th March 2015 and we could see continued growth in this market for a number of years, something indicated by management at recent presentations.

The statement concerning launch of SONA is v welcome this morning as this is a market that SPRP only have 15% penetration. Plenty of growth on offer here in a £60m market

They will also begin to receive benefit of the 10 yr replacement cycle on their detectors sold a decade ago in the UK & in Germany...it's all in my lengthy write-up in Nov 2014.

Anyway, best of luck. We'll need to agree to disagree...

Regards,
GHF

[99matti99] 19/1/2015 09:47

interceptor2

I agree. I read 'we have had a stonking time but expect a rapid deceleration in growth.'

I would be very happy to be told how they can maintain the current sales momentum as I haven't sold, yet.....

[interceptor2] 19/1/2015 09:33

I regret to say that apart from the statement "expects results ahead of market expectations" I thought todays update was underwhelming, so I did sell my holdings this morning.

There was the more obvious slight negatives about adverse FX movements and weakness within the UK. But my concern was the French market, my translation of the statement is that the record order book was mainly achieved in H1 2014, they have seen slower order intake in H2 because the French retail and DIY stores are fully supplied, and they can't be sure is the French will buy as many as hoped for before the new legislation.

I hope I have translated the meaning of the statement incorrectly, and SPRP continue to perform well for all the holders here.

Sorry if I appear rather negative, and hope posters view my post as constructive.

[shanklin] 19/1/2015 09:12

Seems a very modest share price rise given the strength of today's TS.

[glasshalfull] 19/1/2015 08:42

Agree, think there's been a typo in the trading statement.

Significant sales in Europe would be impacted if Sterling strengthened against the Euro...

MG1982 - hold onto your hat...I'll update the header in good time once I've had sight of forecasts.

Regards,
GHF

[fz13] 19/1/2015 08:16

Great updateDasv, sales are in EUR and reporting in GBP, hence negative impact on sales of weakening EUR

[shauney2] 19/1/2015 08:13

Very impressive.
The cash generation is very material to the PER.Thats in spite of the weak Euro.

The dividend is going to be a big added bonus to the growth this company is producing.

[mg1982] 19/1/2015 08:13

Happy with the trading statement. GHF if possible could you please update the info above?
Thank you

[dasv] 19/1/2015 08:01

sterling did weaken against the dollar in h2 2014, but it strengthened against the euro throughout 2014 so slightly confused by this.

however - nice update.

[shanklin] 19/1/2015 07:44

GHF

Agree with your conclusions, albeit was slightly surprised by...

"The positive impact on gross margin as a result of a change in sales mix was broadly offset by the net adverse impact of Sterling weakening against the Euro and the movement in Sterling against the US Dollar."

Thoughts welcome.

Cheers, Martin

[glasshalfull] 19/1/2015 07:37

What can I say...3rd profit upgrade relating to 2014.
They have effectively delivered 2015's forecast a year early! Cash generation also strong & net cash at £15.9m is a stunning £4.2m higher than forecasted net cash of £11.7m at the end of year.

A fantabulous performance when considering the mitigating factor of the weak Euro.

Also delighted to read that their UK Trade brand "SONA" has been launched. They only have 15% market share here (compared to 90% Fire & Rescue) and their product range has been designed to be more more energy efficient than conventional mains powered alarms.

The NANO should also allow for significant margin improvement this year...and we've also got the potential of the Home Connected Trial added to the mix.

An outstanding performance, GW, NR, JG and your team!

Regards,
GHF

[impvesta] 19/1/2015 07:27

Yes - a stonking trading update this morning:



Cash balances have trebled during the year.

"The Company's balance sheet remains strong with £15.9m of cash (2013: £5.2m) and no debt at 31 December 2014."

[glaws2] 19/1/2015 07:12

Super figures - profit 25% ahead of expectations and continues with record order book.

[dangreen86] 19/1/2015 07:09

As expected, great results: 2014 was another strong year of trading for Sprue, reflected in record sales. The Board expects the results for the year ended 31 December 2014 to be ahead of market expectations with sales of GBP65.6m, up 36% on the prior year, and an operating profit of approximately GBP10.3m*, up 94% against last year. These figures are subject to audit.

[glaws2] 16/1/2015 07:30

Nice to see all the french products in the video

[glasshalfull] 15/1/2015 22:55

Get voting!

Nick Rutter (MD) & Chris Bolger (Mechanical Engineering Manager) explaining the growth drivers that exist in the business over the next couple of years via the link below...and I certainly believe the company deserving of a vote in the European Business Awards.

@fireangelsafety: Vote for Sprue Aegis plc as a Public Champion in the European Business Awards here:

Regards,
GHF

Twitter: @glasshalfull1

[speedsgh] 13/1/2015 11:31

Trading Update this week? Last year on 16/1.

From last Trading Update on 20/11...
"The Company will provide a further update on trading and prospects in January 2015."

[eeza] 05/1/2015 20:38

I don't have any problem with BOD selling shares, why shouldn't they.

But to take 3 weeks to declare it to the Co & s/hlders is bloody disgraceful.

[studentinvestor13] 05/1/2015 20:33

excellent tiddler

bought some