SPRUE AEGIS PLC: Unaudited Interim Results for the 6 m/e 30 June 2013

SPRUE AEGIS PLC: Unaudited Interim Results for the 6 m/e 30 June 2013
24 September 2013 
        Sprue Aegis plc ("Sprue", the "Company" or the "Group")             
Sprue designs innovative and market leading smoke and carbon monoxide ("CO")
alarms and other safety related products and is one of Europe's largest
suppliers of such, selling products under its brands of FireAngel, AngelEye and
Pace Sensors, and the BRK brands of First Alert, BRK and Dicon. Sprue is
pleased to announce its unaudited interim results for the six months ended 30
June 2013 ("H1 2013"). 
Financial highlights
  * Record first half performance with turnover up 28% to £21.4m (H1 2012: £ 
  * Record operating profit (pre-exceptional)* up 50% to £2.1m; reported 
operating profit of £1.7m (H1 2012: operating profit £1.4m)   
  * Basic EPS (pre-exceptional)* up 40% to 4.46 pence per share; reported basic 
EPS up 9% to 3.47 pence per share (H1 2012: 3.19 pence per share)   
  * As expected, gross margin (before the fixed £2.0m BRK distribution fee (H1 
2012: £2.0m)) declined to 39.8% (H1 2012: 43.9%) principally due to a 
change in sales mix   
  * Benefit of operational leverage from higher turnover coming through   
  * Excluding exceptional costs*, administrative and distribution costs reduced 
as a percentage of turnover from 23.4% to 20.5%   
  * Balance sheet remains strong with net cash of £3.9m (H1 2012: £5.4m) and 
  * On course to deliver record results for the year, in line with the Board's 
  * Exceptional bid-defence costs of £0.4m incurred in the period 
Operational highlights
  * In the UK, the Nano-905, the miniaturised version of the Group's CO sensor, 
has passed long-term stability testing and is expected to be included in 
finished CO alarms from Q2 2014
  * North American UL component recognition secured on Gen 1 CO, Sprue's 
existing CO sensor, for use in ten-year sealed for life products. This 
represents a potential entry point into the North American market
  * CO sensor volumes at Pace Sensors in Canada have more than doubled compared 
to last year
  * Successful inclusion on the frameworks that have replaced the Firebuy 
framework agreement to supply UK Fire & Rescue Services ("UK F&RS")
  * UK Retail and Continental Europe both performing significantly ahead of 
  * Successful defence of unwelcome bid by BRK Brands Europe Limited at 90p per 

    Sprue share ("BRK bid"); BRK secured acceptances of only 1.26% and withdrew
    its offer on 24 May 2013
    Graham Whitworth, Chairman & Group CEO of Sprue, commented:

"Despite the distractions of the BRK bid, we are delighted to report record
sales and operating profit in what was another extremely busy first half for
the Group. The benefits of the multi-year contracts secured in 2012 are coming
through in incremental sales and profit and the Group's full year results are
expected to be in line with the Board's expectations.

It is pleasing to report that in the UK, the Nano-905, Sprue's miniaturised
version of its existing CO sensor made at our Canadian facility, Pace Sensors,
has passed long term stability testing. Full-scale manufacture of the new CO
sensor will commence shortly, and it is expected to be incorporated in finished
CO alarms from Q2 2014. The Nano-905 provides further evidence of the high
level of intellectual property within the business. Sprue remains well placed
to deliver shareholder value and continues to grow profitably."

For further information, please contact:

Sprue Aegis plc                                 02476 323 232                  
Graham Whitworth, Chairman & Group CEO                                         
John Gahan, Group Finance Director                                             

Westhouse Securities Limited                    020 7601 6100                  
Tom Griffiths                                                                  
Paul Gillam                                                                     
Notes to Editors 
About Sprue Aegis plc 
Sprue has a leading position in the European home safety products' market. Its
principal products are smoke alarms and CO alarms and accessories and the
Company has an extensive portfolio of patented intellectual property. The
introduction of safety products legislation and increasing levels of awareness
of the danger of smoke and CO continue to drive sales. 
Sprue produces one of the world's smallest CO sensors at its wholly owned Pace
Sensor facility in Canada for use in CO alarms. 
Sprue enjoys a leading footprint in the UK Retail space and has a reputation as
the "supplier of choice" to the UK's Fire and Rescue Services, with its award
winning products. The Company is a major supplier to the UK's Utility and
Leisure sector which includes customers such as British Gas and Scottish Gas
and has a well established but relatively low market share of the UK Trade
sector. Sprue has a rapidly growing business in Continental Europe selling
through independently owned third party distributors. Sprue's brands are well
recognised in each of the major markets it competes in. 
The Company has won five prestigious Sunday Times Fast Track 100 Awards, which
recognises the fastest growing companies in the UK. Sprue is quoted on ISDX. 
Sprue has its head office in Coventry and has a further office in Gloucester.
Sprue has one rented warehouse near its Gloucester office and one third party
owned warehouse in Cambridge servicing the needs of its European customers. 
The Company uses third party contract manufacturers to assemble its products in
Patented technology 
Sprue currently has over 60 patents and has patented its technology in Europe,
the US and other selected territories. 
Sprue's range of smoke and CO alarms is independently certified to the latest
European standards. For further product information, please visit:
www.sprue.com or www.fireangel.co.uk or www.pacesensors.co.uk or
www.firstalert.co.uk or www.brk.co.uk 
Company ethos 
Sprue makes products that save lives. It is a simple philosophy. Everything we
do is focussed on designing and selling market-leading smoke and CO alarms that
achieve this objective. 
Sprue is serious about CO and smoke detection and believes everyone should be
properly protected with affordable and reliable home safety products from a
company with brands you can trust. 
Our people work with passion and enjoy being part of a business that designs
and sells products that save lives. We encourage our staff to "make a
difference" to our business every day. 
Sprue Safety Products: The Authority brand 
A house of six powerful brands: Sprue's own brands of FireAngel, AngelEye, Pace
Sensors and the BRK brands of First Alert, BRK and Dicon. We design,
manufacture and supply safety products that save lives. We strive to inform and
educate. We are committed to improving safety standards through investment in
innovative products and technology and ever-increasing levels of service and
FireAngel - The Innovation brand 
Market-leading products targeted at discerning retail and trade customers with
high expectations. FireAngel is committed to innovation. We combine state of
the art technology and design flair to deliver reliable, efficient and
desirable home safety product solutions. FireAngel will extend its strong
retail presence and continues to be the principal brand of choice for the UK's
Fire Brigades. 
Combines technology and design to offer high-performance safety products that
are simple to use and in harmony with your home. A strong brand for the French
Pace Sensors - The CO technology brand 
Pace Sensors, our wholly owned subsidiary based in Canada, is one of the
world's leading CO sensor producers. Pace Sensors' CO sensors are used within
all FireAngel, AngelEye and Pace Sensors branded CO alarms and certain First
Alert branded CO alarms. 
First Alert - The Heritage brand 
First Alert is our heritage brand in the retail sector. As inventors of the
first domestic smoke alarm, First Alert has over 40 years' experience in
manufacturing safety products. It is the trusted global brand in home safety,
selling circa 14 million smoke alarms annually. First Alert is targeted at
customers who put their trust in wisdom and experience, with products that
stand the test of time. A brand with real impact. A brand that demands to be
seen and heard. 
BRK - The Trade brand 
Targeted at skilled professionals who want to get the job done efficiently and
cost effectively. BRK offers a comprehensive range of 230V mains powered smoke,
heat and CO alarms to the contractor, specifier and distributor. BRK is the
benchmark for professional safety products. Our products are targeted at
skilled workers and should be fitted by qualified electricians. 
Dicon - The Tactical brand 
Our products are targeted at customers focused on value and choice. Dicon will
leverage its heritage to evolve into a volume brand of choice. 

                             MANAGEMENT COMMENTARY                             


We continue to build market leading positions in each of the markets we serve
by providing innovative, cost competitive, aesthetically designed, market
leading home safety products. Our products and technology have a high degree of
intellectual property protected through patents. We will continue to expand and
improve our product range to increase our addressable markets. Sprue has made
strong progress in H1 2013 and is gaining momentum in a number of key markets
with significant growth in sales.

Financial review

First half revenue increased by 28% to £21.4m (H1 2012: £16.7m) reflecting 
benefit of new multi-year contracts that Sprue entered into in 2012 together
with strong sales performance in Continental Europe and UK Retail in

As expected, gross margin before the BRK distribution fee of £2.0m (H1 2012: 
2.0m) declined from 43.9% to 39.8% principally due to sales mix. A slight
decline in UK F&RS sales was more than offset by a strong increase in
Continental European and UK Retail sales.

Operating profit (pre-exceptional)* increased 50% to £2.1m (reported operating
profit: £1.7m) and increased at almost twice the rate of sales growth,
reflecting operational leverage from incremental sales. The business remains
highly scalable and fixed costs (pre-exceptional)* as a percentage of sales
continued to improve to 20.5% (H1 2012: 23.4%).

Basic EPS (pre-exceptional)* increased 40% to 4.46 pence per ordinary share
(reported basic EPS: 3.46 pence per share) (H1 2012: 3.19 pence per share).

Cash declined at the half year to £3.9m (H1 2012: £5.8m) following a net
working capital increase of £3.3m, of which stock accounted for £2.1m. We
expect cash generation to improve as inventory levels normalise.

* Exceptional bid-defence costs of £0.4m incurred in the period

BRK bid and ongoing relationship

We thank those shareholders who supported the Board and rejected the BRK bid at
90 pence per Sprue share. After taking advice, the Independent Directors
(excluding Tom Russo and Ashley Silverton) concluded that the offer price of
90p per share fundamentally undervalued the Company and therefore unanimously
rejected the bid and urged shareholders to do the same.

BRK and Sprue continue to co-operate on a day to day basis as supplier/
distributor and Sprue remains the exclusive distributor of BRK's brands in
Europe until 31 March 2015 at the earliest.

Under the Distribution Agreement ("DA") dated 7 April 2010, Sprue and BRK must
confirm by 31 March 2014 whether or not they wish to renew the DA with either
side able to serve twelve months' notice to the other should they decide not to
renew the DA.

Independent of the DA, Sprue confirms that it has a manufacturing agreement in
place with Detector Technology Limited ("DTL"), a business ultimately owned by
Jarden Corporation, the parent company of BRK. This agreement has 12 months'
written notice on both sides and operates independently of the DA. Sprue uses
an independent manufacturer for all its own-brand CO products.

Market update

UK Retail. Performed very strongly with an 87% increase in sales compared to H1
2012. Sprue's own-brand product sales more than doubled, largely due to growth
in sales of CO products, which contain Sprue's CO sensor. Sales to B&Q,
Screwfix, Tesco and Amazon, all of which have an online presence, are
progressing well. Retail sector sales have benefitted from greater awareness of
the danger of smoke and CO with widely publicised safety campaigns led by the
UK Government. The majority of sales into UK Retail were of Sprue's own-brand

Continental Europe. Sales were up 48% on H1 2012, largely due to a strong
performance in Germany. We continue to receive enquiries from countries in
Eastern Europe and parts of Scandinavia for products which are likely to
generate further incremental FireAngel branded business. In France, we have now
introduced AngelEye as the brand of choice for the DIY channel which represents
over circa 90% of the French market by value. Sales into France are in line
with our internal expectations.

Store trials with a major customer in France are underway. This represents a
new potential entry point to the French retail market.

New legislation in Germany is continuing to drive sales where for example, in
Baden-Württemberg (the third largest state with 10.7m inhabitants), 
will require a smoke alarm to be fitted in all domestic homes by December 2014.
The bulk of sales are through professional contractors where Sprue and its
German distributor have established contacts and where the diagnostic
capability of Sprue's products is proving highly appealing to German customers.
To further drive sales, Sprue has hired a German marketing specialist, who is
based largely at its German distributor's office.

Shortly, the original ten-year products sold into Germany in 2007 are due to be
replaced and the replacement cycle that we have seen in Britain will start in
Germany. In addition, Berlin (population: 3.3m), Brandenburg (population: 2.5m)
and Sachsen (population: 4m), are yet to enact smoke alarm legislation which is
expected to provide further growth in sales.

In Germany, sales of FireAngel ST-620 (which scored joint top in Stiftung
Warentest, a German consumer products testing association), FireAngel ST-630
and FireAngel WST-630 (including the Wi-Safe II module) which all offer
diagnostics capability, are all selling well and have become the products of
choice in Germany.

In H1 2013, sales of Sprue's own-brand products in Continental Europe more than
doubled and the majority of sales into this sector were of Sprue's own-brand
products. This ratio is set to increase further as Sprue introduces its
FireAngel range to the Benelux market.

Utilities and Leisure ("U&L"). Sales into the Utilities and Leisure sector
increased nearly three-fold over the corresponding period last year largely due
to the British Gas and Scottish Gas product sales which represent new business
in H1 2013. Sales to Baxi of the "noCO flues in voids CO solution", which
include a relay switch to cut off the supply of gas to the boiler when CO is
detected, were also accretive to sales in H1 2013. Baxi products using Sprue's
technology are branded noCO (Baxi's own brand) and sales are gaining momentum.

Over time, we expect sales to Baxi to significantly increase and we are working
on further potential products in conjunction with Baxi. Almost all sales in the
U&L sector were of Sprue's own-brand products.

UK F&RS. As expected, following the UK Government's budget cuts, sales to the
UK F&RS declined by 26% compared to H1 2012. Feedback from the largest brigades
suggests that no further major cuts are expected over the next three years
although many of the smaller brigades are likely to continue to see slight
reductions in their budgets, which Sprue has factored into its internal sales

Sprue was successfully appointed in 2013 on all the frameworks that have
replaced the Firebuy framework agreement which expired in H2 2012, and sales to
Sprue's UK F&RS customers continue as before. All product sales in this sector
were of Sprue's own-brand products.

UK Trade. UK Trade sales decreased by 12% compared to H1 2012 reflecting the
weak UK housing market. FireAngel product sales into UK Trade, including CO
alarms, were maintained broadly at the same level as H1.

In October 2013, it will become law in Scotland for all homes to fit a CO alarm
where a new or replacement fixed combustion appliance is installed. We expect
this to help drive sales. In H1 2013, approximately half of Sprue's sales into
UK Trade were of Sprue's own-brand products.

Our new range of Trade products is expected to be launched in H1 2014 and will
replace much of the BRK trade range, providing enhanced functionality and
better performance.

Product development and product innovation

Nano-905. The Nano-905 sensor is expected to be included in finished CO alarms
manufactured in Q2 2014. Sprue has spent around £1.0m over the last 3 years to
miniaturise its existing Gen 1 CO sensor and has invested a further £0.1m in
capex to introduce a second production line at its Pace Sensors facility in
Canada to enable the production of the Gen 1 CO sensor and the Nano-905 CO
sensor on separate dedicated assembly lines. The original Gen 1 CO sensor will
be used in ten-year CO variants to be introduced shortly.

Pace Sensors has seen a significant increase in production volumes which are
expected to more than double in 2013 compared to 2012.

Development of AC powered alarms for the UK Trade market. Sprue is on track to
launch a new AC range of products in 2014 with a modern design which will
dramatically improve Sprue's product offering in the sector. Historically, most
of Sprue's sales have been of battery powered alarms, so this represents an
important step forward for the Company, with the expansion of its technology
into AC powered products for the first time. From a very low base, Sprue
expects to gradually gain market share once its products become established.
Sprue continues to sell its battery operated CO alarms into this sector under
the FireAngel brand and sales are progressing well.

Wi-safe 2 technology. Our market-leading FireAngel WST-630 Thermoptek smoke
alarm incorporates our ten-year battery life Wi-safe 2 technology and allows up
to 50 alarms to be meshed in a single wireless network. Sprue expects its low
frequency sounder, vibrating pad and strobe, which will also operate with
Wi-safe 2, to be approved for sale later this year.

UL approval on Pace Sensors Gen 1 CO sensor. Sprue has secured North American
UL component recognition on its Gen 1 CO sensor to sell that component in
products in North America. The Gen 1 CO sensor could be incorporated into
ten-year "sealed for life" CO alarms. The US State of California is expected to
introduce legislation that requires all new smoke alarms to be ten-year sealed
for life products from January 2015. Entry into North America would
significantly increase Sprue's addressable market.

Launch of FireAngel ST-622. Sprue has made some modifications, including the
addition of a "Sleep Easy" function, to the FireAngel ST-620 to create the
FireAngel ST-622 which allows the alarm to be silenced a number of times in the
event that the chirp warning alarm sounds. This product, which is based on
Sprue's Thermoptek technology, has been well received by the UK F&RS.

New product development. We continue to strengthen our technical team, adding
much needed resources to bring greater certainty to the delivery of the product
road map in 2013, 2014 and beyond. Most of Sprue's technical resources focus on
new products for current markets, but Sprue will continue to fund limited
investigative research on new potential products to broaden its addressable
markets where the Board believes that the potential market opportunity warrants
the limited investment.

Shareholder support to move to AIM

As part of the defence of the BRK bid, the Independent Directors announced that
they would seek shareholder support to move Sprue's listing to the AIM market
of the London Stock Exchange ("AIM") within twelve months of Sprue's May 2013
bid defence document.

The Board believes that a move to AIM would raise investors' awareness of
Sprue, potentially improve the daily turnover and liquidity in Sprue's shares
and reduce the share price spread. After consulting with major shareholders,
the Board expects to make a decision in Q1 2014 as to whether to move the
listing to AIM, which could potentially happen in H1 2014.


The Board expects the Group's results for the year ending 31 December 2013 to
be in line with its expectations. The current order book is extremely strong
and extends into early 2014, providing improving visibility.

We expect FireAngel ST-620, FireAngel ST-630 and FireAngel WST-630 to continue
to sell well in all markets. We look forward to the introduction of legislation
in the three remaining states in Germany in the near future, which will require
fitting of smoke alarms in all domestic properties.

As the 8 March 2015 deadline approaches to fit at least one working smoke alarm
in each domestic property in France, Sprue anticipates a rapid uptake in orders
which is expected to have a positive impact in late 2014 / early 2015.
Predicting precisely when sales into France will increase is difficult to
assess, but if France follows the same pattern as other legislated markets, we
expect the market opportunity to be very significant for the foreseeable

Sprue continues to talk to its suppliers to assess their manufacturing capacity
and ability to meet the potential increases in demand for its products

The Board remains optimistic about the Group's prospects.

GRA Whitworth             Nick Rutter                 John Gahan
Chairman and Group CEO    Managing Director Group     Finance Director
                                   - ENDS -                                    
     The Directors of the issuer accept responsibility for this statement      

UNAUDITED CONSOLIDATED PROFIT & LOSS ACCOUNT                                   

FOR THE SIX MONTHS ENDED 30 JUNE 2013                                           

                                                    Note  Six months Six months
                                                            ended 30   ended 30
                                                           June 2013  June 2012

Turnover                                              2       21,442     16,736 
Cost of sales                                         3     (14,934)   (11,418) 
Gross profit                                                   6,508      5,318 
Distribution costs                                             (672)      (683) 
Administrative expenses*                                     (4,130)    (3,235) 

                                                             (4,802)    (3,918)

Operating profit                                               1,706      1,400 
Interest receivable and similar income                             7          2 
Interest payable and similar charges                  4            -       (25) 
Profit on ordinary activities before                           1,713      1,377
Taxation                                              5        (342)      (233) 
Profit for the period                                          1,371      1,144 
Earnings per share (pence)                            6                         
Basic                                                           3.47       3.19 
Diluted                                                         3.34       2.93 
Continuing operations                                                           
None of the Group's activities were acquired or discontinued during the above  
two financial periods.                                                          
*Administrative expenses include bid defence costs of £0.4m                     
FOR THE SIX MONTHS ENDED 30 JUNE 2013                                           

                                                                   Six      Six
                                                                months   months
                                                              ended 30 ended 30
                                                                  June     June
                                                                  2013     2012

Profit for the period                                            1,371    1,144 
Share based payment expense                                          8       20 
Currency translation differences on foreign                         21     (13)
currency net investments                                                        
Total recognised gains for the period                            1,400    1,151 
UNAUDITED CONSOLIDATED BALANCE SHEET                                            
AS AT 30 JUNE 2013                                                              

                                                              As at 30 As at 30
                                                                  June     June
                                                                  2013     2012 

Fixed assets                                                                    
Intangible fixed assets                                          2,560    1,917 
Tangible fixed assets                                              404      274 

                                                                 2,964    2,191

Current assets                                                                  
Stocks                                                           7,472    4,374 
Debtors                                                          9,901    6,453 
Cash at bank and in hand                                         3,866    5,760 

                                                                21,239   16,587

Creditors: amounts falling due within one year                (12,069)  (7,833) 
Net current assets                                               9,170    8,574 
Total assets less current liabilities                           12,134   10,945 
Creditors: amounts falling due after more than one                   -    (500)
Provision for deferred tax                                       (593)    (465) 
Net assets                                                      11,541    9,980 
Capital and reserves                                                            
Called up share capital                                7           787      720 
Share premium account                                  8         3,962    3,486 
Profit and loss account                                          6,792    5,774 
Equity shareholders' funds                                      11,541    9,980 


CONSOLIDATED CASH FLOW STATEMENT                                               

FOR THE SIX MONTHS ENDED 30 JUNE 2013                                           

                                                     Note         Six       Six
                                                               months    months
                                                             ended 30  ended 30
                                                            June 2013 June 2012

Net cash (outflow) / inflow from                      9       (1,461)       306
operating activities                                                            
Return on investment and servicing of                               7      (23)
Taxation                                                        (461)     (435) 
Capital expenditure and financing                               (601)     (488)
Cash outflowbefore use of liquid                              (2,516)     (640)
resources and financing                                                         
Financing - receipt of equity                                     156        41 
Decreasein cash during the period                             (2,360)     (599) 

                                                                  Six       Six
                                                               months    months
                                                             ended 30  ended 30
                                                            June 2013 June 2012

Reconciliation of net cash flow to                                             
movement in net cash                                                            
Decrease in cash during the period                            (2,360)     (599) 
Decrease in net funds resulting from                          (2,360)     (599)
cash flows                                                                      
Non-cash movement in loan and                                       -       (6)
unamortised debt issue costs                                                    
Movement in net funds in the period                           (2,360)     (605) 
Net funds at beginning of period                                6,226     5,865 
Net funds at end of period                            10        3,866     5,260 
Notes to the financial statements                                               
1.        Basis of preparation                                                  
The financial information contained in this announcement has not been audited  
by Baker Tilly, the auditors of Sprue Aegis plc.                                
Basis of accounting                                                             
The financial statements are prepared under the historical cost convention and 
in accordance with applicable accounting standards and on a going concern      
Basis of consolidation                                                          
The Group financial statements consolidate the financial statements of Sprue   
Aegis plc and its subsidiary undertakings drawn up to 30 June 2013. The results
of subsidiaries acquired are consolidated for the period from the date on which
control passed. All intra-Group transactions, balances and unrealised gains on 
transactions between Group companies are eliminated on consolidation            
2.        Turnover                                                              
An analysis of turnover by geographical market                                 
is given below:                                                                 

                                                          Six months Six months
                                                            ended 30   ended 30
                                                           June 2013  June 2012

United Kingdom and Eire                                       11,981     10,707 
Continental Europe                                             7,452      5,242 
Other (including Pace Sensors)                                 2,009        787 
Total                                                         21,442     16,736 


3.        Cost of sales                                                         
Cost of sales includes £2.0m in respect of the distribution fee payable to BRK  
Brands Europe Ltd under the terms of a distribution agreement dated 7April 2010
(2012: £2.0m).                                                                  
4.        Interest                                                              

                                                          Six months Six months
                                                            ended 30   ended 30
                                                           June 2013  June 2012

Interest on loan notes                                             -       (25) 
Interest receivable                                                7          - 


5. Taxation                                                                     

                                                          Six months Six months
                                                            ended 30   ended 30
                                                           June 2013  June 2012

Current tax:                                                                    
Corporation tax charge for the period                          (272)      (130) 
Total current tax charge and tax on                            (272)      (130)
profit on ordinary activities                                                   
Deferred tax:                                                                   
Origination and reversal of timing                              (70)      (103)
Total deferred tax                                              (70)      (103) 
Total tax on profit on ordinary                                (342)      (233)


6.        Earnings per share                                                    

                                                          Six months Six months
                                                            ended 30   ended 30
                                                           June 2013  June 2012

Profit attributable to shareholders being profit               1,371      1,144
after taxation                                                                  


Weighted average number of shares in issue for                39,525     35,880
basic calculation (`000)                                                        
Deemed issue of potentially dilutive                           1,492      3,179
shares (`000)                                                                   


Weighted average number of shares in issue for                41,017     39,059
diluted calculation (`000)                                                     


Earnings per share (pence)                                                      
- basic                                                         3.47       3.19 
- diluted                                                       3.34       2.93 


7.        Called up share capital                                              
                                                          Six months Six months
                                                            ended 30   ended 30
                                                           June 2013  June 2012

100,000,000 (2012: 100,000,000) ordinary shares                2,000      2,000
of 2p each                                                                      


Allotted, called up and fully paid                                              
39,345,373 (2012: 36,008,895) ordinary                           787        720
shares of 2p each                                                               


Share options over 761,200 shares were exercised during the period at an       
average option price of 18.4p per share (H1 2012: 185,000 share options        
exercised at an average price of 20.0p per share).                              

                                                              Number    Nominal

                                                            '000 value 
Ordinary shares of 2p each                                       761         15 
8.        Share premium account                                                 

                                                          Six months Six months
                                                            ended 30   ended 30
                                                           June 2013  June 2012



At beginning of the period                                     3,822      3,449 
Premium on issue of shares                                       140         37 
At end of the period                                           3,962      3,486 


9.        Reconciliation of operating profit to net cash flow from operating   
                                                          Six months Six months
                                                            ended 30   ended 30
                                                           June 2013  June 2012

Operating profit                                               1,706      1,400 
Amortisation of development costs                                 93         70 
Amortisation of goodwill                                           9          9 
Depreciation charge                                               50         40 
Exchange differences                                            (15)       (17) 
Share-based payment expense                                        8         20 
Movement in debtors                                            (254)        574 
Movement in stock                                            (2,069)        549 
Movement in creditors                                          (989)    (2,339) 
Net cash(outflow) / inflow from                              (1,461)        306
operating activities                                                            


10.     Analysis of net cash                                                    

                                                         At      Cash        At
                                                  beginning     flows    end of 
                                                    of period              period

                                                   £000      £000      
Cash at bank and in hand                              6,226   (2,360)     3,866 


-0- Sep/24/2013 06:00 GMT

Press spacebar to pause and continue. Press esc to stop.