MAN Manroy

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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