Sprue Aegis makes 'positive start' to year

Investors in Sprue Aegis were set to hear about the company’s “positive start” to the financial year on Thursday, as the developer and supplier of home safety products held its annual general meeting.

The AIM-traded firm’s executive chairman, Graham Whitworth, indeed said it had made a “positive start” to the year with an expected “strong return” to profitability in the first half building on the steady progress delivered in the second half of 2016.

He said the combination of a “significant improvement” in gross margin and a net reduction in overheads was expected to contribute to a much improved financial performance by the group in the first half, compared to the same period in 2016.

“Despite the recent modest currency fluctuations, the group remains well positioned to deliver full year adjusted operating profit in line with market expectations,” Whitworth said.

“The new manufacturing and distribution arrangements announced by the company on 31 March are progressing well.

“These transformational initiatives will further strengthen our offering in the key markets we serve across Europe and greatly enhance our ability to accelerate growth and maximise shareholder value in the medium to longer term.”