Sprue Aegis Share Discussion Threads

[pally12] 26/4/2016 14:16

Can you think of any that has not had a profit warning somewhere or another if you can think of any company that is garranted a profit every year please let us know so we can invest

[pj 1] 26/4/2016 12:58

speedsgh
Nothing concrete yet but it seems the batteries COULD be supplied as part of a sealed unit to SPRUE, from Jarden, if true obviously some conflict there.

Take with a pinch of salt, hopefully the meeting tomorrow night may get to the bottom of it

[thomasthetank1] 26/4/2016 12:55

Read Stockdale Securities's note on SPRUE AEGIS, out this morning, by visiting hxxps://www.research-tree.com/company/GB0030508757
"Sprue’s 2015 final results have been overshadowed by the £5.5m warranty provision and knock-on impact on our 2016 and 2017 profit forecasts. Sprue is testing a replacement battery in the alarms it is targeting for the German market where legislation has been passed requiring some 10m homes to have smoke alarms by end 2017. On the back of the lower profit forecasts, our DCF-derived TP is now 200p (previously 400p) but we restart our Buy rating, given the strong net cash position, dividend and long-term growth potential ..."

[speedsgh] 26/4/2016 12:54

Seems to me that one of the main uncertainties is the extent of any reputational damage. This will presumably only become evident over the coming months.

I still haven't noticed any comments from the company re seeking damages in due course from the third party supplier of the faulty batteries, although I may have missed this? I can fully understand them taking a proactive stance to deal with the problem in order to limit damage to the company/brand reputation but surely the fault ultimately lies with the battery supplier + Sprue should at least be able to reclaim any losses incurred in dealing with the issue (let alone any possible damages to the company's/their brands' reputation) from the third party supplier? Has anyone else seen anything on this?

[the big fella] 26/4/2016 11:42

Re Germany we are not talking 1 detector per home. Invariably it will be 5 per home. They also buy the premium product. New legislation and replacement cycle should drive numbers 2nd this year but especially 2017 and 2018. We also know that once France sort it's self out normal levels are now much higher than before the spike plus Uk trade doing well. 2016 is a write off and that is in the price.

[tsmith2] 26/4/2016 11:34

Westhouse;Sprue’s 2015 final results have been overshadowed by the £5.5m warranty provision and knock-on impact on our 2016 and 2017 profit forecasts. Sprue is testing a replacement battery in the alarms it is targeting for the German market where legislation has been passed requiring some 10m homes to have smoke alarms by end 2017. On the back of the lower profit forecasts, our DCF-derived TP is now 200p (previously 400p) but we restart our Buy rating, given the strong net cash position, dividend and long-term growth potential.

[eezymunny] 26/4/2016 11:31

There may (or may not) be another year of bumper profits from Germany to look forward to but what after that? I'd be somewhat wary of putting a significant PE multiple on SPRP. Seems to me it's probably priced about right here but I guess Mr Market may run it higher. Mr Market can be pretty dim!

[rcturner2] 26/4/2016 11:28

You know that they have stated that they will make a loss in the current half year don't you?

[pally12] 26/4/2016 11:11

The Group reported a robust operating profit of £12.8m (£10.4m) on record sales of £88.3m (2014: £65.6m).

[davebowler] 26/4/2016 10:24

Westhouse;
Sprue’s 2015 final results have been overshadowed by the £5.5m warranty provision and knock-on impact on our 2016 and 2017 profit forecasts. Sprue is testing a replacement battery in the alarms it is targeting for the German market where legislation has been passed requiring some 10m homes to have smoke alarms by end 2017. On the back of the lower profit forecasts, our DCF-derived TP is now 200p (previously 400p) but we restart our Buy rating, given the strong net cash position, dividend and long-term growth potential.

 

[davidosh] 26/4/2016 10:11

Just a reminder that ShareSoc have arrange a results and business briefing for shareholders and potential investors for tomorrow evening...




There are only 23 places remaining available so register quickly.

[pally12] 26/4/2016 09:45

But are they still not making a profit? whether up or down to previous year

[rcturner2] 26/4/2016 09:26

profits are down not up

[pally12] 26/4/2016 09:08

Take no notice of buys and sells manipulated , just look at results and judge from there , well managed battery issue , prifots still up , divi, good forward looking results after battery issue , which has already neen accounted for

[professor x] 26/4/2016 08:57

Most of the transactions between 126 - 127 are buys not sells! Several were mine.

[rcturner2] 26/4/2016 08:55

dunno why any of that is good news

seem to be more sellers than buyers

[masurenguy] 26/4/2016 08:44

Topped up this morning following my initial purchase last week.

[tsmith2] 26/4/2016 08:16

Agree; should bounce v v nicely

[tmmalik] 26/4/2016 07:05

Now things are clear ,big rebound today ,25% up minimum

[davidosh] 24/4/2016 00:35

ShareSoc have organised an event this Wednesday specifically to help shareholders and potential investors in Sprue...



There are only 50 places available so register quickly.

[battlebus2] 23/4/2016 17:31

More news from this is money

[pally12] 21/4/2016 08:21

More guidance required on steps to be taken to rectify battery issue and costs and timescale imo

[davidosh] 20/4/2016 18:23

Sprue discussed on the radio....

[mickluv1] 19/4/2016 19:52

Could we assume that we are now at the bottom?