The share price of Sprue Aegis (LSE: SPRP), which makes smoke detectors, carbon monoxide detectors and other home safety products under brands such as FireAngel, AngelEye, SONA and Pace Sensors, is currently down 15%.The fallfollows release of the companys final results for the year ended 31 December 2014, in which Executive ChairmanGraham Whitworth warned that whist revenue for 2015 is anticipatedto significantly exceed market expectation, pre-tax profit for the yearisexpected to come in marginally below market expectations, owing to gross margins being adversely affected by Sterlings continuing strength against the Euro.
The sharp fall comes despite Sprue reporting a record performance for 2014, with a 36% surge inrevenue, up to 65.6m, and record reported operating profit, which was up 88%, at 9.6m. And at like-for-like exchange rates with 2013,group profit for 2015 would have been approximately 1.7m higher.
Basic earnings per share (EPS) rose 62%, to 18.8p, and the board is recommending a final dividend of 6p per share. Conbined with Spruesmaiden interim dividend of 2p per share, that would represens a 33% increase in the total dividend, taking it to 8p per share.
Operational highlights from 2014 include move from ICAP Securities & Derivatives Exchange (ISDX) to AIM on 30 April 2014 and raiing 8m from a placing ofnew shares,securing exclusive European distribution rights over BRK Brands products and brands on improved terms until at least 31 March 2018, and the companys French market significantly out-performing management expectations.
Commenting on the resultsGraham Whitworth said:
Sprues mission remains to protect, save and improve our customers lives by making innovative, leading edge technology simple and accessible. It is a simple philosophy. At the same time, we remain focussed on driving shareholder returns and will continue to invest in our product base and technology and with Nick Rutter [a co-founder] devoting more time to drive this initiative, we will continue to enhance our market leadership position in each of the markets in which we operate.
Despite this mornings fall, at 290.5p, Sprues share price is up 35% on this time last year, during which time the AIM All-Share indexhas fallen 8%.
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Jon Wallis has no position in any shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.
