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Shares of AIM-traded Sprue added 26p to 258p earlier today, an 11% gain, after the home safety products company revised its guidance for 2014.
Since releasing a trading update for the six months to 30 June Sprue’s order book has grown markedly, driven by a large increase in smoke detector orders from France, and as such the board now anticipates full year results to beat expectations.
Sales grew by 11% to £24m in the half year, driven by strong demand for FireAngel smoke detectors in continental Europe. UK performance, meanwhile, was mired by fewer campaigns targeting awareness of carbon monoxide poisoning and destocking, but the newly bolstered order book will more than offset this.
The balance sheet, as of 30 June, showed £12m of cash and no debt. Sprue shares trade at 23 times last year’s earnings which, factoring into account this morning’s upgraded earnings forecast, could fall to a P/E multiple below 17.
Investors can expect a further update on the company’s prospects at the time of the publication of its half year results to be announced on 22 September.
Mark Stones has no position in any shares mentioned. The Motley Fool 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.