19th Jan 2015 08:04
LONDON (Alliance News) - Sprue Aegis PLC on Monday said it expects its results for 2014 to be ahead of market expectations on the back of strong sales in France which offset some weakness in the UK.
The home safety products company said it expects its results for the year to December 31 to beat market expectations, with revenue expected to be around GBP65.6 million, up 36% year-on-year, and an operating profit of around GBP10.3 million, nearly double the figure for 2013.
The group was boosted by strong sales in its French business in the second half and is seeing continued demand in the country ahead of the introduction in March of a legal requirement for homes to have at least one working smoke alarm. Sprue did sound a note of caution on the French business, saying the performance of the division relies heavily on the "sell through" rate of products, which is currently uncertain.
The rise in sales in France more than offset the slight weakness in sales for its UK Retail and Pace Sensors business. Other parts of its UK business, including sales to trade, utilities and leisure customers, were broadly in line with its expectations.
Sprue also noted the positive impact on its gross margin from a change in its sales mix was offset by the adverse currency movements.
Sprue said its order book is robust, primarily due to demand in France for the first half of 2015, and said it remains confident on its 2015 outlook despite the recent weakness of sterling against both the dollar and the euro.
Sprue also provided an update on its product range, saying it expects its Nano-905 version of its carbon monoxide sensor to be installed in certain 'sealed for life' detectors in the first half of the year, before a full roll out across its product range in the second half. It also said a trial to wirelessly connect its home safety products, allowing remote monitoring of its products online, is underway and said the initial signs are encouraging.
By Sam Unsted; [email protected]; @SamUAtAlliance
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