Fireangel Regulatory News (FA.)

22 July 2016

Sprue Aegis plc

("Sprue", the "Group" or the "Company")

Trading update

Sprue (AIM: SPRP), one of Europe's leading home safety products suppliers, today issues a trading update ahead of the release of its unaudited interim results for the six months ended 30 June 2016 ("H1 2016"), which are expected to be announced in late September 2016. All figures set out in this announcement are subject to review by the Group's auditors.

The Board expects sales for H1 2016 to be approximately £25.9 million (H1 2015: £56.5 million) and to report an operating loss* of £0.9 million (H1 2015: £9.0m operating profit*). Due to stronger than expected trading in June 2016, the operating loss* for H1 2016 is significantly lower than the Board's expectations as previously announced in the Company's final results on 26 April 2016.

While total sales in H1 2016 were £30.6m lower than in H1 2015, sales into France in H1 2016 declined by £33.7m compared to H1 2015, which was partially offset by growth in UK sales and at Pace Sensors.

Net cash at 30 June 2016 of £14.7 million (2015: £28.9 million) was adversely impacted mainly by the H1 2016 operating loss* and the £7.0m payment for buffer stock acquired in Q4 2015. Sprue remains debt free (30 June 2015: nil debt).

The Board is pleased to announce that at the time of the announcement of the interim results for the six months ended 30 June 2016, it intends to declare a maintained interim dividend of 2.5 pence per share.

Outlook

The Company continues to invest in product innovation and technology to expand and improve the Group's product range and enhance its competitive position in each of the markets that it serves.

Subject to there being no further net adverse foreign exchange rate movements, the Board expects Sprue's sales and operating profit for the year ending 31 December 2016 to be approximately £58.0 million and £1.9 million respectively.

A further update on trading will be provided at the time of the release of the Company's H1 2016 results, which are expected to be announced in late September 2016.

*Operating loss is stated after a £0.2m restructuring charge (H1 2015: £nil) and before share based payments charge of £0.3m (H1 2015: £0.2m)

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Notes to Editors

About Sprue Aegis plc

Sprue's mission is to protect, save and improve our customers' lives by making innovative, leading edge technology simple and accessible.

Sprue is one of the market leaders in the European home safety products market. Its principal products are smoke alarms and CO alarms and accessories and the Group has an extensive portfolio of patented intellectual property. Sprue has patented its technology in Europe, the US and other selected territories.

The introduction of new technologically advanced products and new safety products legislation in the UK and in Europe, and increasing levels of awareness of the dangers of smoke and CO, continue to drive sales.

Sprue manufactures CO sensors at its subsidiary, Pace Sensors for use in its CO alarms. All other manufacturing and product assembly is outsourced to two principal third party contract manufacturers in China, one of which is Newell Brands which owns 23.6% of the Group and Pace Technology which is independent from Newell Brands.

Sprue enjoys a leading sales footprint in UK Retail and the UK's Fire & Rescue Services. The Group also supplies the UK's Utility and Leisure sector which includes customers such as British Gas and Scottish Gas and has a well-established but relatively low market share of the UK Trade sector. Sprue has a rapidly growing business in Continental Europe mainly selling through a network of independently owned third party distributors

The Group has won a number of prestigious Sunday Times Virgin Fast Track 100 Awards, which recognises the 100 fastest growing companies in the UK. Sprue's head office is in Coventry and it has a second office in Gloucester. Warehousing is located in Cambridge and Gloucester

Sprue's range of products is comprehensive, allowing the Group to tailor the range of smoke alarms, CO alarms and accessories to suit its customer needs at various price points under the following brands:

Ø FireAngel. A market-leading and innovative battery operated alarm principally targeted at UK Retail and UK F&RS

Ø AngelEye. Launched in 2012, Sprue sells smoke alarms and CO detectors principally into the French market under the AngelEye brand and to Sainsburys in the UK. AngelEye has become a leading brand targeted at the DIY channel in France

Ø SONA. A new, low power mains powered range of smoke and heat alarm products plus CO detection that are market leading and which can be wirelessly interconnected with up to 50 products on a single network

Ø FireAngel Pro. Mains-powered smoke alarm with a 10 year, sealed for life lithium battery back-up. Modern design, quick fitting, tamper-proof mounting plate which locks the alarm head securely in place. Mounting plate has wide, easily accessible connection to the mains feed. Cable knock-out allows for compatibility with YT2 cable trunking

Ø Pace Sensors. CO sensors used within Sprue's CO products are developed by Sprue and Pace Sensors, Sprue's wholly owned subsidiary in Canada. Pace Sensors' CO sensors are used within all FireAngel, AngelEye and Pace Sensors CO detectors and certain First Alert branded CO detectors

Sprue has the exclusive rights to distribute the products and brands of BRK Brands Europe Limited (a subsidiary of Newell Brands) in Europe namely, First Alert, BRK and Dicon. First Alert is one of the leading safety products brands in North America.

For further product information, please visit: www.sprue.com.