Sprue Aegis PLC (LON:SPRP) is to publish its full-year results next week after the fire and smoke alarm retailer settled a dispute with one of its former distribution partners.
The disagreement with home safety products maker BRK Brands meant Sprue’s results weren’t published in March as expected.
READ: Sprue Aegis takes a knock as distribution split gets messy
But the two sides have now reached a settlement, allowing AIM-listed Sprue to release its results next Tuesday (May 15).
Sprue and BRK signed a distribution agreement back in 2010 which would see Sprue stock and sell BRK’s products.
The deal was extended in 2015 for a further three years but BRK informed Sprue last March that it would terminate the agreement in 12 months’ time.
The termination turned messy though, with BRK saying it would not buy back any of its unsold stock after it accused Sprue of breaching some of the conditions of the initial agreement.
BRK has now agreed to buy back unsold stock manufactured since January 2017 for £1.02mln, while Sprue will pay the £10.97mln it owes in monthly instalments between now and December.
“I am pleased to announce that we have reached agreement with BRK following the termination of the DA and MA, which deals with all outstanding matters and enables us both to move on with our respective businesses without the risk of legal claims,” said Sprue executive chairman Graham Whitworth.
Sprue shares jumped 13.6% to 125p in mid-morning trade on Thursday.