LONDON (Alliance News) - Home safety products supplier Sprue Aegis PLC said on Friday it expects to report a swing to an operating loss for its first half, but said this loss is "significantly lower" than it had previously expected.
Sprue Aegis said it expects to report an operating loss of GBP900,000 for the first half of 2016, swung from an operating profit of GBP9.0 million the year before, on revenue of GBP25.9 million, a major decline compared to GBP56.5 million the previous year.
The home safety products supplier said this operating loss was "significantly lower" than its expectations, due to stronger than expected trading in June.
While total sales in the first half were GBP30.6m lower year-on-year, sales into France declined by GBP33.7m year-on-year. Sprue Aegis said this was partially offset by growth in UK sales, particularly at subsidiary Pace Sensors.
Net cash at the end of June of GBP14.7 million, down from GBP28.9 million, was adversely impacted by Sprue Aegis' operating loss and its GBP7.0m payment for stock acquired at the end of 2015.
Despite the company's decline in revenue, Sprue Aegis said it is looking to expand and improve the group's product range, and "enhance its competitive position" in the home safety market. The company said it will pay a maintained interim dividend of 2.5 pence per share.
Sprue Aegis said it is expecting revenue for the full year to be approximately GBP58.0 million, and operating profit to be GBP1.9 million, subject to further adverse movements in foreign exchange rates.
Shares in Sprue Aegis were down 0.6% at 178.00p Friday morning.
By Lucy Heming; lucyheming@alliancenews.com
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