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 
--------------------------------------  --------------------------------- 
 Glyn Bottomley, Chief Executive 
--------------------------------------  --------------------------------- 
 Paul Carter, Finance Director 
--------------------------------------  --------------------------------- 
 
 Canaccord Genuity Limited - Nomad and                 Tel: 020 7523 5000 
  Broker 
--------------------------------------  --------------------------------- 
 Mark Dickenson 
--------------------------------------  --------------------------------- 
 Peter Stewart 
--------------------------------------  --------------------------------- 
 
 Tavistock Communications                              Tel: 020 7920 3150 
--------------------------------------  --------------------------------- 
 Baron Phillips 
--------------------------------------  --------------------------------- 
 Simon Compton 
--------------------------------------  ---------------------------------

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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