Supply chain worries hit smoke sensor outfit Sprue Aegis (SPRP:AIM) as a key Chinese manufacturing facility is threatened by plans to build a railway line through the site. Coventry-based Sprue owns the intellectual property for its sensor technology and outsources manufacturing to supplier Jarden, which majority-owns the Shenzen plant called CICAM.

Jarden, also a shareholder in Sprue, licences its brands to Sprue, a key risk covered previously in Shares.

Shares in the AIM-listed firm are down in 15.2% to 291p in early trade.

SPRUE AEGIS - Comparison Line Chart (Rebased to first)

‘Having worked previously with CICAM to move the facility about five years ago, Sprue understands what is required and is now engaging with the appropriate certification bodies to ensure that the facility can be certified by the relevant approval authorities in a timely manner,’ the company says in a full-year trading update.

Jarden is looking for alternative facilities.

Results for the 2014 calendar year show profit-before-tax gained 90% to £9.6 million and earnings per share gained 73% to 17.6p.

Foreign exchange headwinds shaved £1.7 million from group profit and further currency volatility means this year’s profit will be marginally below expectations, executive chairman Graham Whitworth says.

Issue Date: 27 Apr 2015