Trading Update (5586P)
05 October 2011 - 5:00PM
UK Regulatory
TIDMMAN
RNS Number : 5586P
Manroy PLC
05 October 2011
5 October 2011
Manroy Plc
("Manroy" or the "Company")
Trading Update
Manroy (AIM:MAN), the leading UK machine gun manufacturer, today
announces a trading update for the year ended 30 September
2011.
Manroy has announced a number of significant contract wins
throughout the period and successfully completed two acquisitions
since the Company's admission to AIM in December 2010, further
details of which are set out below. In the current political
climate, the UK Government has delayed the award of export licences
in relation to certain countries where Manroy had expected to
deliver products in the year ended 30 September 2011. As announced
by the Company in its interim results announcement in July of this
year, delivery on a number of these orders is now expected to be
during the 2011/2012 financial year.
As a result of some of these delayed orders, the Company expects
revenues for the year ended 30 September 2011 to be approximately
15% below market forecasts, although increased margins and tight
cost control will largely mitigate this, with profit before tax for
the full year anticipated to be broadly in line with market
expectations. The Board reiterates its intention to recommend a
final dividend of 1p per share to all shareholders on the register
prior to the issue of shares in August 2011, making a total payment
of 2p per share for the year ended 30 September 2011.
During the period Manroy completed the acquisitions of AEI Land
Systems Limited ("AEI") and a 49% interest in Manroy USA LLC
("MUSA") (together the "Acquisitions") in April and August 2011
respectively. The Acquisitions demonstrate Manroy's commitment to
expanding its product offering and geographic presence, with the
benefits of the Acquisitions expected to be seen during the
2011/2012 financial year.
Integration of the business and assets of AEI is now fully
completed. Since its acquisition in April this year, AEI has
received UK Ministry of Defence ("MoD") and export orders with a
value of over GBP2 million. This includes a GBP0.6 million MoD
order for the further supply of lightweight tow bars to be
delivered during 2011, with an option for further deliveries over a
three year period.
Following MUSA's acquisition of the business and assets of Sabre
Defence Industries LLC in March 2011, the enlarged MUSA business
now has a significantly increased product range and the opportunity
to complete contracts worth $10.0 million (GBP6.5 million) for the
US Department of Defense. The Board expects these contracts to be
novated to MUSA in the coming months and for them to be fulfilled
in 2012.
The Company will provide a further update on its trading
performance in its preliminary announcement of results for the year
ended 30 September 2011, which is expected to be at the end of
January 2012.
Glyn Bottomley, Chief Executive of Manroy, said:
"The acquisitions of AEI and MUSA were important milestones in
our expansion and we are already seeing the benefits. It is
frustrating that certain export licence approvals have taken longer
than expected, but the Board remains confident that the Group will
see the benefits from these contracts during 2012. Manroy has
developed a strong platform throughout the year and we view the
future with confidence."
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
Notes to Editors
Manroy is a manufacturer of machine guns, mounts and other
associated products. It is a key UK Ministry of Defence and US
Department of Defence supplier.
Following the 49% acquisition of Manroy USA ("MUSA") in August
2011, the enlarged group gained access to the US defence market. In
March 2011, MUSA increased its capability and size through the
purchase of the business and assets of Sabre Defence Industries for
approximately $6.0 million (GBP2.7 million).
Manroy currently manufactures, supplies and supports, amongst
others:
-- the 12.7mm M2 Heavy Machine Gun ("HMG"), also known as the
0.50" calibre HMG;
-- the 7.62mm General Purpose Machine Gun ("GPMG");
-- M16, M4 and M5 weapons;
-- Quick Change Barrel kits; and
-- weapon tripods and mounting systems.
The Company is focused on deriving further value from existing
partner relationships and creating additional revenue streams by
continuing to expand its product offering and selling into new
territories.
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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