Fireangel Regulatory News (FA.)

19 January 2015

Sprue Aegis plc

("Sprue" or the "Company")

Trading update

and

Product and technology update

Sprue (AIM: SPRP), one of Europe's leading home safety products suppliers, today issues a trading update ahead of its audited results for the year ended 31 December 2014, which are expected to be announced in late April 2015.

2014 was another strong year of trading for Sprue, reflected in record sales. The Board expects the results for the year ended 31 December 2014 to be ahead of market expectations with sales of £65.6m, up 36% on the prior year, and an operating profit of approximately £10.3m*, up 94% against last year. These figures are subject to audit.

Sales into France in H2 2014 were particularly strong and Sprue continues to see strong demand ahead of the introduction in March 2015 of a legal requirement to have at least one working smoke alarm in each domestic property. Whilst the Company's order book has continued to build strongly over the past 12 months and remains at record levels extending into the second half of this year, 2015 sales into France depend heavily on the "sell through" rate of products which is uncertain at this stage. Sprue enjoys an estimated footprint of around 50% of French DIY and 75% of French retail space, therefore the business remains well positioned in that market.

The significant increase in sales into France more than offsets slightly softer sales by UK Retail and Pace Sensors. Other sales in the UK to the Trade, Utilities and Leisure and the Fire & Rescue Services sectors were broadly in line with management expectations.

The positive impact on gross margin as a result of a change in sales mix was broadly offset by the net adverse impact of Sterling weakening against the Euro and the movement in Sterling against the US Dollar. The Company's balance sheet remains strong with £15.9m of cash (2013: £5.2m) and no debt at 31 December 2014.

The Company's forward order book is still at an unprecedented level, largely due to demand in H1 2015 in France, and despite the recent adverse movement of Sterling against the US Dollar and the Euro, the Board remains confident of the outlook for 2015.

Product and technology update

In December 2014, the Company was pleased to launch its new range of mains powered smoke and carbon monoxide products and accessories designed specifically for the UK Trade sector. The new range of products branded "SONA" incorporate Sprue's own Thermoptek, Thermistek and Wi-Safe II technology and sits alongside a refreshed range of BRK trade products which significantly strengthens the Company's product offering in this important sector, where historically the Company has had a lower market share compared to the other sectors in which it operates. The Company's SONA mains powered smoke alarm is the first alarm in the UK to have a proven carbon footprint and uses just a fraction of the stand-by power of a conventional smoke alarm. Customer feedback to date has been highly encouraging.

The Nano-905, the Company's miniaturised version of its established carbon monoxide sensor, is expected to be installed into certain seven year "sealed for life" carbon monoxide detectors for sale in the first half of 2015 before being rolled out across the product range in the second half of the year.

The Company is also pleased to confirm that a trial to wirelessly connect Sprue's home safety products to the internet using its Wi-Safe II technology - allowing remote monitoring of Sprue's products over the web - is underway and initial signs are highly encouraging.

The Company reaffirms its commitment to continue to develop its own technology and to deliver innovative, technology led, leading home safety product solutions to position itself as the market leader in each of the markets it serves.

*Before exceptional AIM costs of £0.5m and a share based payments charge of £0.2m in 2014 and before exceptional bid defence costs of £0.4m in 2013

- Ends -

For further information, please contact:

Notes to Editors

About Sprue Aegis plc

Group overview

With its head office in Coventry, UK, Sprue is one of Europe's leading home safety products suppliers outsourcing the manufacture of smoke and carbon monoxide alarms to third party suppliers in China leaving Sprue to focus on product design, development and certification, marketing and sales. Sprue manufactures one of the world's smallest carbon monoxide sensors for use in its carbon monoxide alarms at its own small facility in Canada.

Sprue sells smoke and carbon monoxide alarms and other safety related products throughout Europe under the FireAngel, AngelEye, SONA, Pace Sensors, First Alert, BRK and Dicon brands and enjoysa strong Continental European market presence, a leading UK retail footprint, is the supplier of choice to the UK's Fire and Rescue Services and continues to develop its market share in the UK's trade sector.

Patented technology

With significant investment in ground-breaking technology and product development and with over 50 granted patents, the Company is now one of Europe's leading home safety products suppliers. Sprue's philosophy is simple: to make products that save lives. 

For further product information, please visit:

www.sonasafety.com

www.fireangel.co.uk

www.firstalert.eu

www.brkdicon.eu/en or 

www.sprue.com