MAN Manroy

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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