After a challenging year in 2016 that led to a profit collapse, Sprue Aegis (LSE:SPRP) is bouncing back. The company designs and distributes smoke and CO alarms, including those that can be connected to the internet, and City analysts predict a 128% recovery in earnings this year and 32% during 2018.
Sprue announced the launch of the UK's first battery-powered 'Natural Gas Detector', a major new product innovation for the company, under its FireAngel brand.
The FireAngel Natural Gas Detector is uniquely powered by replaceable batteries and is simple to use as a portable or freestanding device.
Designed and independently tested to meet the European standard for domestic combustible gas detectors (BS EN 50194), the unit features a semi-conductor catalytic sensor that continuously detects combustible gas plus "smart" test, silence and reset buttons for ease of use.
Sprue reported a strong return to profitability through a significant improvement in gross margin and a net reduction in overheads. As announced on 15 June 2017, Sprue made a positive start to the year and for H1 2017 expects to report sales of approximately £26m (H1 2016: £25.9m) and operating profit of approximately £1.5m (H1 2016: operating loss of £0.9m before share based payments charge).
The Group remained well positioned to deliver full year adjusted operating profit in line with market expectations.
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