TIDMMAN

RNS Number : 1596E

Manroy PLC

01 April 2011

1 April 2011

MANROY PLC

("MANROY" OR THE "COMPANY")

ACQUISITION OF ASSETS, EXTENSION OF OPTION

EXERCISE PERIOD AND TRADING UPDATE

Manroy, the UK's leading machine gun manufacturer, is pleased to announce that it has today acquired the business and assets of AEI Land Systems Limited ("AEI"), a UK based designer and producer of weapon mounting systems. In addition, the exercise period of the option agreement entered into by Manroy on 3 December 2010, as referred to in the Company's admission document of that date, has been extended from 31 March 2011 to 30 June 2011. Since then, the company subject to the option agreement has acquired a further business in the same industry in the United States. A further announcement will be made in due course.

Additionally, the Company today provides an update on trading for the six months ended 31 March 2011, being the first trading period since the Company's shares were admitted to trading on AIM in December 2010 ("Admission").

Acquisition of business and assets of AEI

As referred to in the Company's admission document dated 3 December 2010, the Company envisaged expanding its operations in conjunction with AEI. The Company is pleased to announce that it has acquired the business and assets of AEI for GBP250,000, payable in cash, together with an earn out at the lower of 7 per cent. of AEI related turnover and 50 per cent. of profit after tax generated from the acquired assets of the AEI business. The earn out is only payable for two years from the date of acquisition and will be funded from the profits of the AEI business acquired.

Established in September 2006, AEI designs and produces weapon mounting systems such as turrets, gun mounts and various bespoke protected weapon stations for armoured vehicles. It has designed and supplied equipment under the MoD 'Urgent Operational Requirement' needs for Iraq and Afghanistan and has recently developed new business, in particular in France and Asia.

Manroy and AEI have synergistic product lines, a common customer base, Section 5 approved facilities and established routes to market. Manroy has previously marketed AEI's products and co-operated with it, where appropriate, on a number of invitations to tender where together they have been able to offer a complete solution to a customer's weapon mounting requirements.

Trading update

In the six months ended 31 March 2011, the business continued to perform strongly. The Directors expect the results for the Company as currently constituted for the year ending 30 September 2011 to be in line with market expectations.

In January 2011, Manroy announced a GBP1.3 million contract to provide spare parts to a Middle Eastern government, together with a new three-year technical support contract with the MoD. Since receipt of these orders, the Middle Eastern region has been subject to severe unrest. The Directors believe it important to reiterate that Manroy adheres strictly to UK legislation concerning the sale of armaments and weapons to foreign countries and governments. Additionally, where the Company sells any of its products overseas, such sales are undertaken in strict adherence to UK Government export regulations and approvals and are only undertaken after all appropriate UK Government licences have been granted.

For further information please contact:

 
 Manroy Plc                         Tel: 01252 874 177 
  Glyn Bottomley, Chief Executive 
  Paul Carter, Finance Director 
 Arbuthnot Securities Limited       Tel: 020 7012 2000 
  Tom Griffiths 
  Ed Groome 
 Tavistock Communications           Tel: 020 7920 3150 
  Baron Phillips 
  Simon Compton

This information is provided by RNS

The company news service from the London Stock Exchange

END

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