14th Sep 2015 09:26
LONDON (Alliance News) - Sprue Aegis PLC, which designed and sells products to detect smoke and carbon monoxide, on Monday said pretax profit quadrupled in the first half of 2015, and that its result put it on track for full-year results in line with market expectations.
Pretax profit rose to GBP8.8 million in the six months to June 30, compared with GBP2.1 million in the corresponding half the prior year, as revenue more than doubled to GBP56.5 million from GBP23.8 million on "strong sales" into France and to a lesser extent in Germany.
Sprue Aegis increased its interim dividend to 2.5 pence from 2.0p, and reiterated its progressive dividend policy.
"If we could identify an acquisition that would strengthen our strategic and market position to drive long term shareholder value by enhancing our technology and product offering and/or accelerating incremental revenue and profit opportunities, we would pursue it," Executive Chairman Graham Whitworth said in a statement.
"However, I can assure shareholders that the board will apply strict acquisition hurdle criteria before approving any such acquisition and, in the meantime, we will continue to maintain our significant cash reserves," Whitworth said.
The company said net cash stood at GBP28.9 million on June 30, up from GBP11.7 million a year before, with no debt.
Sprue Aegis, which was hit by sterling's strength against the euro, and to "a far lesser extent" its weakness against the dollar, said its guidance for the full year was subject to "no significant net adverse foreign exchange rate movements".
Shares in Sprue Aegis were up 8.8% at 340.00 pence on Monday morning.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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