Sprue Aegis Share Discussion Threads

[its the oxman] 27/4/2015 08:40

Reckon it will finish down but over 300p. We will see.

[dasv] 27/4/2015 08:39

Steg - yes I think so too. In my opinion a market over-reaction.

[stegrego] 27/4/2015 08:37

22% off on that statement is pretty impressive, especially as it opened slightly up. I'd expect it to work it way back up in the next month or two.

[its the oxman] 27/4/2015 08:35

Time to buy. Very overdone, but that happens sometimes.

[fozzie] 27/4/2015 08:33

Wiped all my profit out in 30 mins. Did i read the right rns this morning? This is just utter madness.

[the big fella] 27/4/2015 08:32

Well that is pretty brutal

[mg1982] 27/4/2015 08:31

dasv - I saw that but the market always likes certainty. The fact that they might be forced to relocate is causing these jitters.

Theres no way it could drop so much just based on marginally below!

[herewegouk] 27/4/2015 08:30

This has been well over done this morning, madness.

[reddave999] 27/4/2015 08:30

Oh dear shoe zone last week now this, I'm in big trouble:(

[fozzie] 27/4/2015 08:29

Typical over reaction by the market, great place to add for me though.

[dasv] 27/4/2015 08:27

MG1982 - yes - agreed. Note though that SPRP have been through a plant move before:-

"Having worked previously with CICAM to move the facility about five years ago, Sprue understands what is required and is now engaging with the appropriate certification bodies to ensure that the facility can be certified by the relevant approval authorities in a timely manner."

[mg1982] 27/4/2015 08:20

I think expectations being just below market expectations is fine short term. However I feel the uncertainty of the manufacturing base moving and its impact on stock is whats spooking the market. We wont know further details until mid-end of year 2015.

[dasv] 27/4/2015 08:15

2015 PEG is 0.69. So even if it's missed, factoring in cash, lack of debt, the stock is still pretty cheap on forward earnings even if expectations missed marginally.

[imranawan] 27/4/2015 08:10

Sold out first thing this morning for a modest profit. Agree underlying results are impressive, but currency headwinds and issues around the production facility are likely to mean share price is weak in the short term. Will look to buy in lter in the year, if the opportunity presents itself.

[the big fella] 27/4/2015 07:53

The underlying business is performing fantastically. Unfortunately exchange rates have moved spectacularly against them. I suspect they will already be looking at pricing etc to address this differential. It is disappointing because without this we could easily be doing next years numbers this year. I have been with Sprue long enough to know they will pull through this blip as they did a few years ago when they were presented with a number of headwinds (when the shre price was about 50p)

[dasv] 27/4/2015 07:46

yeah - it's just "marginally below" - not "materially below".

Note revenue forecast to significantly exceed market expectations.

not sure how the market will react. Prob down a bit but shouldn't be by much imo.

Outlook

"France is performing ahead of management's expectations with a significant order book extending into the second half of 2015. As a result, the Board now expects Sprue's revenue for 2015 to significantly exceed market expectations, however, due in particular to Sterling's strength against the Euro continuing to adversely impact gross margin, it expects the Group's profit before tax (before share-based payments charge) for 2015 to be marginally below market expectations.

We will continue to invest in product development and our connected home solution to deliver future profitable growth whilst prioritising the cash generation potential of each investment opportunity. We believe that these investments will continue to drive sales and provide healthy returns for shareholders."

[sundance 13] 27/4/2015 07:20

A technical profit warning in the outlook statement though due to adverse exchange rates, revenue ahead of expectations though!

[shanklin] 27/4/2015 07:20

Given the spectacular change in the GBP/EUR rate, only just missing 2015 expectations would be pretty impressive IMHO.

[mg1982] 27/4/2015 07:20

gutted!

The outlook sounds weak:

Profit before tax for 2015 is going to be below market expectations due to stronger sterling / weaker euro.

They also have damn Jarden having to relocate their manufacturing base thanks to the Chinese. This will have some impact. Theres only so much buffer stock you can pile up!

I dont think the market will like this.

If it goes too low I would like to top up for a long term hold.

[saj3] 27/4/2015 07:15

Only effect is the euro exchange rate which is marginal! No debt and divi will be going up every year, nearly 16 million cash

[gorilla36] 27/4/2015 07:12

Look like a solid set of results if not spectacular?

[brahmsnliszt] 23/4/2015 22:05

Have had these for almost a year now and ticking up nicely I see. Keep going boys.

[reddave999] 23/4/2015 16:18

Thanks for that Extrader lets hope it's good news:)

[extrader] 23/4/2015 15:27

Hi Red+,

Only 2 trading days to trading statement......

ATB