Trading Update (8147B)
23 April 2012 - 4:00PM
UK Regulatory
TIDMMAN
RNS Number : 8147B
Manroy PLC
23 April 2012
FOR IMMEDIATE RELEASE
23 April 2012
MANROY PLC:
TRADING UPDATE
Manroy PLC ("Manroy" or the "Group"), the AIM quoted leading UK
machine gun manufacturer, today provides a trading update ahead of
its half year results which are expected to be published by the end
of May 2012.
The Group announced at the time of its annual results in
February this year that several large orders had been unavoidably
delayed and were expected to be received during the second half of
this financial year. One of those, the novation of US$10.4m
(GBP6.6m) US Department of Defense orders to Manroy USA ("MUSA")
was announced last week, but a substantial Heavy Machine Gun
("HMG") export order from an existing customer, a large part of
which, was forecasted to be fulfilled during the current financial
year has not yet been confirmed.
The Board believes it will receive confirmation of this key HMG
export order, which is expected to generate approximately GBP8m in
revenue, within this financial year. The delay in timing of
awarding the contract, and taking into account the time required to
secure a UK Government export licence once the order has been
received, means it is now unlikely that deliveries and, therefore,
sales from this export order will be realised in the current
financial year ending 30 September 2012.
The impact of this contract delay is that results for the year
ending 30 September 2012 will be adversely affected. The Board
expects revenue for the year ending 30 September 2012 to be in the
region of GBP7.5m against market forecasts of GBP11.3m.It should be
noted that, as a result of this delay, revenues for the 12 months
ending 30 September 2013 are expected to reflect the full benefit
of the contract fulfilment in that year.
The Board emphasises that the successful fulfilment of the HMG
order is expected to lead to further similar sized orders in the
future. These will be in addition to any further contracts secured
by the Group. The Board has also reviewed Manroy's financial
position and confirms it has sufficient cash to maintain its
present position as well as to undertake fulfilment of the above
orders as they are confirmed.
Glyn Bottomley, Manroy's Chief Executive, said; "It is obviously
frustrating that we have not yet received confirmation of this HMG
order, which we forecasted for delivery in the current financial
year. However, it is important to understand that we have invested
over two years of customer development, product testing and trials
to reach the preferred supplier status that we now have with this
major customer for both the HMG and General Purpose Machine Gun
("GPMG"). But unfortunately it is difficult to predict precisely
when a customer will place an order of this size and strategic
importance to him. There are substantial requirements for both HMG
and GPMG over the next two to three years which will be
transformational to our business in terms of capacity and
revenue."
"This also applies to the MUSA novated contracts that we have
now received. While this has been a frustrating wait, it has
enabled MUSA to further refine the manufacturing systems in its new
Spindale plant and, as a result, MUSA is well placed to bid for
further US defence contracts and is confidently expected to
contribute profits in the Group's 2012/2013 financial year and
onwards."
A further update will be issued at the time of the Company's
half year results by the end of May.
Ends.
For further information please contact:
Manroy Plc Tel: 01252 874 177
Glyn Bottomley, Chief Executive
Paul Carter, Finance Director
Canaccord Genuity Limited - Nomad Tel: 020 7523 8350
and Broker
Robert Finlay
Peter Stewart
Tavistock Communications Tel: 020 7920 3150
Baron Phillips
Simon Compton
Notes to Editors:
Manroy is a UK based manufacturer of machine guns, mounts and
other associated products. A key Ministry of Defence supplier for
over 25 years, Manroy currently manufactures, supplies and
supports:
-- the 12.7mm HMG, also known as the 0.50" calibre HMG;
-- the 7.62mm General Purpose Machine Gun
-- M2 Quick Change Barrel kits;
-- weapon tripods and mounting systems; and,
-- through MUSA, M16, M4 and M5 weapons;
The Group is focused on the opportunity to derive further value
from existing partner relationships and to create additional
revenue streams by continuing to expand its product offering, and
to move into new territories.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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