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SPRP Sprue Aegis

77.00
0.00 (0.00%)
Last Updated: 00:00:00
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Sprue Aegis LSE:SPRP London Ordinary Share GB0030508757 ORD 2P
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.00 0.00% 77.00 75.00 79.00 - 0.00 00:00:00
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
0 0 N/A 0

Sprue Aegis Share Discussion Threads

Showing 1376 to 1399 of 1775 messages
Chat Pages: Latest  59  58  57  56  55  54  53  52  51  50  49  48  Older
DateSubjectAuthorDiscuss
18/4/2016
07:34
RCT2: Well done - Usually best to follow one's gut feel - this had been on recovery wqtch list of some time but I had held back because of the warning rns's -

With the possibility of BREXIT and the current mess in the euro area probably best to keep it on watch and not jump in (imo)- As I suspect possible demands from distribution channels to uplift and replace potentailly defective stock.

thoughts ?

pugugly
18/4/2016
07:33
:-( Carnage indeed.
gnnmartin
18/4/2016
06:27
Boy, am I glad I sold these after reading that statement.

Expect carnage today.

rcturner2
11/3/2016
19:56
I guess that the share price will continue to bounce around for a while, but I am very tempted to add.

My strong recollection from a SPRP presentation late last year after the June 2015 results was that growth is not solely reliant upon the German market (although clearly very important). Poland, Holland and the Nordic countries were also mentioned, as well as new UK product. The next report should add further colour as to what progress has been made.

Investment in the new Chinese facility would have been huge, so it is hardly surprising that a renegotiation of terms was triggered. Like some other posters, I am pleased that SPRP management has locked in terms now rather than letting the issue drag on, albeit at extra cost.

james188
11/3/2016
19:40
tbh, I have sold out

just seems to be par for the course with small companies that they get hit very quickly, without any warning

had it recently with Amino Tech and seen it with several others too

rcturner2
11/3/2016
19:35
I've just been looking at DTL/Jensen/BRK/Sprue relationship. It was BRK (wholly owned by Jensen) who made the bid for Sprue that bumped Sprue into migrating from Plus to AIM. I hadn't realised that Sprue were/are so dependent on the Jensen family. They won the tussle with BRK, and ended up distributing BRK's product, but Jensen (also owner of DTL) were/are well placed to ensure that they do not lose out.

The trading update in January said this years profit is expected to be around £12.1m, and that next years is expected to be "in line with market expectations". I do hate that "in line with market expectations": they should say what they believe market expectations to be if they are going to endorse those expectations. Does anyone know what those expectations were? Anyhow, they have now come clean and said expectations for next year are now lower, at £8.3m profit, "slightly below market expectations".

The hope was that Sprue would surprise on the upside on the back of rising demand in Germany, and on a better euro/pound exchange rate and anyhow an exchange rate that was unlikely to move as far in the unfavourable direction as it did last year. My concern now is whether the current announcement is a coded message telling us that we can't expect the German sales to make up for the expected fall off of the sales in France.

Ah well, I'm not selling anyhow, so I suppose I don't need to know the answer. We'll know more in mid-April when the audited results for the 2015 year are published.

gnnmartin
10/3/2016
16:06
TBF - I feel quite hurt. Don't believe my broker was contacted for stock. LOL.

I've picked up a few today. Couldn't resist.

Regards
GHF

glasshalfull
10/3/2016
15:59
Seems perfectly sensible to work alongside your main strategic supplier + help share some of the pain that they are currently experiencing. After all, what goes around comes around. Seems like common sense long term relationship management. I am sure today will be seen as another decent buying opportunity in the fullness of time.
speedsgh
10/3/2016
15:50
Someone is trying to take advantage of the fall as I had a call from my broker as the MM was looking for shares.
the big fella
10/3/2016
10:17
Couldn't agree more TBF.

I believe Jarden invested multi-millions on the new CICAM factory which will assist SPRP if/when volumes ramp-up in respect of Germany. The deal struck under the Distribution Agreement in March 2014 (see link below) fixed product prices for 2 YEARS from Jan 2014 @ $1.62, so was up for renegotiation.



Jarden would of course be looking to raise prices in light of this previous exchange rate, especially with £ under pressure & Chinese labour rates increasing...and the significant investment in the new factory.

This morning's announcement confirms that SPRP and Jarden are sharing equally the impact of £ depreciation AND a volume rebate mechanism which infers that should volumes ramp up then SPRP stand to gain incremental price reductions. I've clarified this with the company and believe that if volumes rise above a pre determined level this will help offset any currency weakness.

Of course, should the £ recover against the $ or German volumes come through per my recent post (see link) then the impact will be negligible.




Kind regards,
GHF

glasshalfull
10/3/2016
09:57
It reads worse case scenarios IMHO. When material outside influences are unduly affecting one side of the deal then I don't blame them for agreeing a compromise. It isn't ideal but not a game changer especially given the euro. It is also possible that USD will come under pressure in the run up to their elections. I would expect Gbp to strengthen if we vote, as expected, to remain in. Lots of ponderables. It is easy to post negatives on here but in the rel world GW etc have a business to run and would only agree to changes in contract terms of they believed they were in the medium/long term best interests of the company.
the big fella
10/3/2016
09:45
Hi tiswas, yes this was a surprise to me at least I suppose it shouldn't have been, just having one sole supplier is always a risk, and it looks like they have turned the screw despite all the positive gloss. The forecast drop in profits for 2016 of almost 10% almost mirrors the drop in share price so I suppose the share price fall is justified. I did feel before reading the RNS that it was more likely to be good news that the £ had weakened so much against the euro. I’m not sure how the proposed takeover of Jarden by Newell Rubbermaid progressed however any takeover of Sprue at a large premium to the current price must now look a lot less likely. Just my take on events.
3800

3800
10/3/2016
09:31
The wy that reads is that their manufacturing "partner" has their balls in a vice and is prepared to turn the lever
zoolook
10/3/2016
09:02
What is behind the veil is the question, on a medium/ long term view and secure future predicted volumes
pj 1
10/3/2016
08:55
Retrospectively with effect from 1 January 2016, Sprue has agreed to amend supply terms with DTL, as a result of which the Board now expects that the Company's operating profit for the year ending 31 December 2016 will be approximately GBP8.3 million, slightly below market expectations.

Are they vulnerable to having a sole supplier? Is the above number a surprise to followers?

No position.

tiswas
10/3/2016
08:51
Well that's a first. Marginally below. I wonder why they did not see this coming though, unless there was more pressure than they anticipated?

Sprue Aegis plc Update on Supply Terms

10/03/2016 7:00am
UK Regulatory (RNS & others)

Sprue Aegis (LSE:SPRP)
Intraday Stock Chart
Today : Thursday 10 March 2016

Click Here for more Sprue Aegis Charts.
TIDMSPRP

RNS Number : 6029R

Sprue Aegis plc

10 March 2016

10 March 2016

Sprue Aegis plc

("Sprue" or the "Company")

Update on supply terms with Detector Technology Limited ("DTL")

Sprue (AIM: SPRP), one of Europe's leading home safety products suppliers, today issues an update on the supply terms with DTL, owned by Jarden Corporation ("Jarden"), the supplier of all of Sprue's own branded smoke alarms and accessories, which also supplies the smoke and carbon monoxide alarms and accessories of BRK Brands Europe Limited ("BRK"), also owned by Jarden, and a substantial shareholder in the Company.

Retrospectively with effect from 1 January 2016, Sprue has agreed to amend supply terms with DTL, as a result of which the Board now expects that the Company's operating profit for the year ending 31 December 2016 will be approximately GBP8.3 million, slightly below market expectations. The details of the amended supply terms are as follows:

-- Working in partnership with, and at Sprue's request, DTL has made significant investment in its new high technology manufacturing facility and is bearing increases in Chinese labour costs. Sprue has agreed to accept modest product price increases to reflect a share of the incremental costs incurred by DTL. The new CICAM manufacturing facility has significant capacity above current production levels which Sprue can utilise as product volumes increase over time.

-- Sprue has agreed to share equally the impact of Sterling's depreciation against the US Dollar from a previously fixed rate of GBP/US Dollar 1.62 exchange rate. Furthermore, the parties have agreed to an annual retrospective volume/12 month average foreign exchange rate rebate mechanism. At the expected current volumes and the current GBP/US Dollar exchange rate of around GBP/US Dollar 1.42, this results in significant product on cost on all DTL sourced product this year. However, should purchase volumes increase and/or the average GBP/US Dollar exchange rate improve from the current level, Sprue will see its share of the benefit.

-- Sprue continues to purchase all Sprue and BRK products from DTL on 90 day landed credit terms.

Commenting on the new arrangements with DTL, Graham Whitworth, Executive Chairman of Sprue said: "Despite the product on-cost, this is an important agreement for the Group with its key supplier DTL. The new terms allow Sprue to share equitably the impact of changes in production volumes and movements in the GBP/US Dollar exchange rate with DTL whilst ensuring its key supplier has the capacity and an appropriate investment base to deliver the products to support Sprue's strategic plan."

pj 1
17/2/2016
19:25
We know from the last holdings RNS they had under 3%. I have not been counting but I would suggest a large portion of that has been recycled today.
the big fella
17/2/2016
18:03
Any comment on volume ?
wilk1
17/2/2016
12:07
Large block of stock to shift here ?
wilk1
17/2/2016
10:38
GHF - Great write up on TMF. Thank you for sharing. Going by today's volume/price action, it would appear you still have the power to move! :o)
speedsgh
17/2/2016
08:31
Indeed 😄
the big fella
17/2/2016
08:27
Good to hear from you TBF. Also first time in over 4-years that I've added to my position. Quality company with quality management.

"Great minds think alike, fools seldom differ".
Hopefully the former!

Kind regards,
GHF

glasshalfull
17/2/2016
08:23
GHF

I too spoke with GW a week or 2 back and reached the same conclusion. I have bought a further 40000 shares as I believe they offer tremendous value at these levels.

the big fella
16/2/2016
23:35
I've completed a comprehensive update on the company for anyone interested over on the Motley Fool. It can be accessed via this link

There are a number of links in the post & I'll alter and add it here for posterity tomorrow.

Regards,
GHF

glasshalfull
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