Manroy PLC Manroy USA Awarded Hubzone Status (9376K)
29 August 2012 - 4:00PM
UK Regulatory
TIDMMAN
RNS Number : 9376K
Manroy PLC
29 August 2012
FOR IMMEDIATE RELEASE
29 August 2012
MANROY PLC:
MANROY USA AWARDED HUBZONE STATUS FOR NORTH CAROLINA
MANUFACTURING FACILITY
Manroy Plc ("Manroy" or the "Group"), the AIM quoted UK defence
contractor, today announces that its 49% owned associated company,
Manroy USA ("MUSA"), has been awarded Historically Underutilised
Business Zone ("HUBZone") status for its Spindale, North Carolina,
manufacturing facility.
The awarding of HUBZone status has a significantly positive
impact on MUSA's ability to win US Government defence contracts as
it gives holders certain competitive advantages over non-HUBZone
status businesses.
As part of the 1997 US Small Business Reauthorisation Act, the
HUBZone programme aims to encourage and promote economic
development and employment growth in economically depressed areas
by providing access to more federal contracting opportunities. The
US Government's goal is to award 3% of all federal prime contracts
to HUBZone-certified small businesses.
From MUSA's perspective, HUBZone status provides two clear
advantages. First, MUSA will be able to tender for certain US
Department of Defense ("DoD") contracts on a sole source basis
rather than competing directly against major defence contractors.
Secondly, it will provide MUSA with a 10% price evaluation
preference in full and open contract competitions as well as
further sub-contracting opportunities. This essentially results in
a HUBZone contractor's quoted price being automatically discounted
by 10% against those from businesses without such status for the
purposes of awarding contracts, though the full price is paid on
sale.
MUSA has already obtained accredited Small Business status as
defined by the Small Business Administration ("SBA") and, following
its move to Spindale, has now fulfilled all necessary requirements
for a small company to receive HUBZone status. The SBA administers
the HUBZone programme on behalf of the US Government and acts as a
liaison with federal agencies to ensure the appropriate businesses
are offered appropriate tender opportunities.
Glyn Bottomley, Chief Executive of Manroy, commented: "The
awarding of HUBZone status to MUSA is an important step forward in
the company's development as it gives us a significant competitive
advantage when bidding for DoD contracts. It also affirms the
strategic decision we took to consolidate MUSA's manufacturing
activities in the Spindale location which has enabled us to
participate in this programme."
Ends.
Contacts:
Manroy Plc Tel: 01252 874 177
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Glyn Bottomley, Chief Executive
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Paul Carter, Finance Director
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Canaccord Genuity Limited - Nomad and Tel: 020 7523 5000
Broker
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Mark Dickenson
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Peter Stewart
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Tavistock Communications Tel: 020 7920 3150
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Baron Phillips
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Simon Compton
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Notes to Editors:
1. Manroy is a UK based defence contractor specialising in the
supply of weapon systems for land, air and maritime
applications.
2. A key Ministry of Defence supplier for 26 years, Manroy
designs, manufactures, supplies and supports:
-- the 12.7mm M2 Heavy Machine Gun ("HMG"), also known as the 0.50" calibre HMG;
-- the 7.62mm General Purpose Machine Gun ("GPMG");
-- HMG Quick Change Barrel kits;
-- a range of turret products for armoured fighting vehicles;
-- weapon tripods and weapon mounting systems
3. Production of the HMG, along with support and spares is
Manroy's core area of operation. In recent years Manroy has
increasingly focused on the export market and diversification of
its customer base into new territories.
4. Manroy owns 49% of North Carolina based Manroy USA ("MUSA"),
a leading defence supplier to both military and civilian
agencies.
5. MUSA manufactures a range of weapons systems and ancillary products, including:
-- The M2 HMG
-- M2 HMG Quick Change Barrel kits
-- Barrel manufacturing for both the military and commercial markets
-- M16 and M4 military rifles
-- Electronic boresights
-- Mounting systems
-- Commercial rifles and parts
6. MUSA's acquisition of Sabre Industries in March 2011 enhanced
its penetration of the US market.
7. In April 2012, $10.4m (GBP6.6m) of Sabre's contracts with the
US Department of Defense were successfully novated to MUSA.
The Group adheres strictly to UK legislation concerning the sale
of weapons to foreign countries. Manroy's overseas sales are
undertaken in adherence to UK Government regulations and approvals.
Such sales are only undertaken after all appropriate UK Government
licenses have been granted.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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