Sprue Aegis reaches agreement over faulty batteries

Home safety products supplier Sprue Aegis announced on Thursday that it has reached agreement with its third-party Chinese battery manufacturer on a warranty claim.

The AIM-traded firm said the claim was over a supply of batteries that potentially cause a premature end-of-life low battery warning chirp in some of Sprue’s smoke alarms.

Its board had announced the fault on 18 April, and once again stressed it is “not a safety-critical issue”.

“The financial benefit from the warranty claim will be provided by the manufacturer in the form of free of charge replacement batteries and is expected to be worth around £0.1m in 2016,” Sprue’s board said in a statement.

“The remainder of the warranty claim is expected to be recovered over the next two years depending on the Group's battery purchase volumes from the manufacturer.”