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Just a wee small tranche at sub 269p...
Got on board today with a few k's worth. Wasn't too sure about the AGM statement but as it had no negative effect on the SP I hope this can rise back up to where it should be. Once over the exchange rate problems, which will come, swings and roundabouts, the profitability herein should shine through IMHO. GLA
The first half of 2015 ("H1 2015") is expected to be another strong period of trading for Sprue, reflected in record sales and operating profit*. Whilst the strength of Sterling against the Euro has continued to create significant headwinds, sales into France have continued to perform strongly and, in total, H1 2015 sales into Continental Europe are likely to be significantly ahead of both last year and management expectations. Sales by the other four business units are expected to perform broadly in line with management expectations and last year. The Board expects H2 2015 sales and operating profit* to be lower than H1 2015 and the results for 2015 to be line with market expectation.
I am going to top up if it goes below this point
Cracking company and jumped at the opportunity to enter on this weakness. Been watching for a while. Personally think the selling due to euro weakness has been over done here.
Doh! what a numpty you must think I am! I should have seen that. Sorry! Thank you for the reply.
Grexit = Greece Exit from EU Many investors fear that Greece exit would shake the value of Euro.
Apologies I'm kinda new here and dont tend to post much can you enlighten me on the Grexit factor. I emailed the co. y/day and got a call back from the finance dir. and all sounds well production in China is under control as well as forecast production requirements is up, the only thing I can add is posts from iii indicate that Sterling strength may have an influence on profits! Is this just a shake out? No debt ,production increase but what do I know lets see what tomorrow brings
I am puzzled as well. Could it be the Grexit factor?
Can anyone shed some light on the reason for the price drop this afternoon ?
I owned these up till a few months ago, in at 2.23 out at 3.45 when it started trading sideways for a few months. Now, as far as I can see, this has now become a bit of a bet on the euro. There is no doubting this is a top quality company which ticks all the boxes, which would normally mean I would jump back in. However, it all depends where the euro is going as any rises would lead to profit upgrades, any falls progit downgrades. I suspect risk reward is now more in favour of rises in the euro as opposed to any major falls - but I'm no currency dealer. Any ideas people?
PI's clearly panicked this morning and now it is heading back towards a sensible SP... RNS almost entirely positive so all will be well here imo
I suppose the only real issue is with the last sentence of the outlook statement, which reflects sterling's strength. Perhaps the election will lower sterling somewhat. "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."
Agree - very good. On cash flow, I liked: "During 2014, the Group placed significant emphasis on improving cash flow generating net cash flow from operations of £8.8m (2013: £2.2m). The balance sheet remains robust with net cash of £15.9m (2013: £5.2m) and no debt. In addition, improving cash flow further in 2015, the Group will shortly move to a monthly VAT return regime to be able to recover the excess input VAT from HMRC monthly rather than quarterly which will provide a sizeable one off but permanent cash flow benefit to the Group provided the Group's European sales remain around the current proportion of total sales." I also like the 33% dividend increase, increase in cover to 2.2 (from 1.8) and commitment to a progressive dividend policy.
I thought it was great so don't know why it dropped so much buy glad to see common sense prevailing and sp going back up will finish + for the day with a bit of luck.
Any views on sp direction over next few days/weeks. Seem to be struggling to go through 337 resistance.
Paul Scott discusses the trading update- http://www.stockopedia.com/content/small-cap-value-report-19-jan-2015-pmp-sprp-tht-90508/
Bought in recently. Surprised by the flat, level, table-top like, plateau this share often prefers. Checked back, and the condensation of the graphs flatter the table-top tendenacy of the SP when it's taking a breather. But it's there, time, and time again. Don't have another share in my portfolio with that characteristic. Disconcerting, but nothing more than a characteristic tendency of this stock, I think.
"the Company's financial performance has continued to be strong and October was a record month for sales and profit ... Based on the current order book, and subject to products being built and shipped in line with the current delivery schedule, the Board expects that the Company's results* for the year ending 31 December 2014 will be ahead of market expectations."
There does not seem to be much resistance now before we get back to the 293p level the sp was about a week ago. Hopefully it will smash through that and hit new highs.
Picked up a few today. Hopefully it will start rising again next week.
"Our order book is at record levels extending out to 2015, helped in particular by strong demand for our smoke alarm products in France ahead of the introduction of new legislation in March 2015 which requires all domestic properties in France to fit at least one working smoke alarm," it said.
Listen to this quick summary of SPRP-starts at 09:52 on recording. http://uk.advfn.com/newspaper/justin-waite/28832/listener-tip-of-the-week-is-sprue-aegis-sprp-plus-don-t-buy-qpp