In British political parlance 'nanny state' - the idea that citizens cannot look after themselves but need central government to make rules governing their wellbeing - is a pejorative term. But safety products supplier Sprue Aegis (SPRP) is more likely to regard regulations requiring landlords to install smoke detectors in all private rental properties as manna from heaven. Initiatives in the UK, Germany and France spurred a big increase in its turnover.
Top-line growth was strongest in France, with revenue up to £42.4m, from just £10.9m in last year’s first half, as legislation supercharged sales. In Germany, an expected 10m homes across Bavaria and North Rhine-Westphalia will need, by law, a smoke alarm in every hallway, bedroom and child’s room over the next two years. Back in the UK, rules requiring landlords to fit smoke alarms, and in some cases carbon monoxide alarms, helped boost sales by a third at Sprue Aegis's fire and rescue business.
Behind the scenes the company is trialling technology that will allow the remote monitoring of its products - its stab at the 'internet of things'. New chief executive Neil Smith has created a business unit to house this work, alongside a fresh marketing strategy to build the brand.
Analysts at Westhouse Securities expect adjusted pre-tax profits of £12m for 2015, giving EPS of 21.8p, compared with £10m and 18.8p last year.
| SPRUE AEGIS (SPRP) | ||||
|---|---|---|---|---|
| ORD PRICE: | 338p | MARKET VALUE: | £154m | |
| TOUCH: | 330-345p | 12-MONTH HIGH: | 357p | LOW: 236p |
| DIVIDEND YIELD: | 2.5% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 72p | NET CASH: | £28.9m | |
| Half-year to 30 Jun | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2014 | 23.8 | 2.15 | 4.9 | 2 |
| 2015 | 56.5 | 8.82 | 16.9 | 2.5 |
| % change | +137 | +311 | +245 | +25 |
Ex-div: 15 Oct Payment: 30 Oct | ||||
