Manroy PLC Trading Update (7369K)
01 August 2013 - 9:23PM
UK Regulatory
TIDMMAN
RNS Number : 7369K
Manroy PLC
01 August 2013
FOR IMMEDIATE RELEASE
1 August 2013
MANROY PLC ("MANROY" OR THE "GROUP")
TRADING UPDATE
Manroy, the AIM quoted UK defence contractor, today provides a
trading update for the financial year ending 30 September 2013.
Summary
There has recently been a change in status of approved export
licenses affecting one customer of the Group, a delay in delivery
timing of one contract until after the September 2013 year end and
a delay in finalising contract conditions for a recently won
order.
The impact of these contract delays is that the Board now
expects revenue for the year ending 30 September 2013 to be in the
region of GBP9.0m against market forecasts of GBP12.0m.
Licenses
Previously granted export licenses for a region in North Africa
have recently been revoked by the UK Government. Therefore delivery
of these orders cannot be fulfilled, which has reduced current year
revenue by GBP0.6m.
Delivery timing
Manroy was scheduled to deliver its first sizeable production
order of General Purpose Machine Guns (GPMGs) in the second half of
the current year ending 30 September 2013. Completion of new
production techniques has taken longer than anticipated, meaning
that this order will now be fulfilled in part in the current
financial year and in part the first quarter of the year ending 30
September 2014. This reduces expected revenues for the year ending
30 September 2013 by GBP1.0m.
Finalising contract conditions
Due to the recent finalisation of contractual conditions with a
new customer, GBP1.4m of expected revenue in the year ending 30
September 2013 is now expected to occur in the first quarter of the
year ending 30 September 2014.
UK order book
The current order book for the UK Group stands at GBP15.0m, up
from GBP9.6m at the 30 September 2012 year end.
Glyn Bottomley, Manroy's Chief Executive, said; "These events
are very frustrating and overshadow the significant growth in
Manroy's order book and product expansion during the year. I am
disappointed that the growth in our order book and product range
will not be reflected in the financial results for the year ending
30 September 2013."
ENDS
For further information please contact:
Manroy Plc Tel 01252 874177
Glyn Bottomley, Chief Executive
Paul Carter, Finance Director
Allenby Capital Tel: 020 3328 5656
Mark Connelly
Alex Price
Bankside Consultants Tel: 020 7367 8888
Richard Pearson
Simon Rothschild
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 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 rifle barrels and spares
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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