TIDMMAN
RNS Number : 1484M
Manroy PLC
13 September 2012
13 September 2012
MANROY PLC:
TRADING UPDATE AND GBP484,500 PLACING OF NEW SHARES
Manroy Plc ("Manroy" or the "Group"), the AIM quoted UK defence
contractor, today announces a trading update and the placing of
850,000 new ordinary shares to existing institutional shareholders,
Directors and individuals, at a price of 57 pence per share (the
"Placing").
HIGHLIGHTS
-- Manroy continues to progress a number of key contracts
worldwide; the Group has won GBP9.2m of new contracts this year in
addition to the GBP6.6m of contracts novated to Manroy USA ("MUSA")
in April 2012.
-- MUSA continues to progress First Article Acceptance ("FAA")
testing and approvals process, with first approvals for certain of
these contracts anticipated imminently.
-- Revenues for FY2012 expected to be in-line with previously stated guidance.
-- GBP484,500 raised by way of placing with institutional
shareholders, Directors and individuals at a price of 57p per
share
MANROY
Manroy continues to: progress a number of key contracts
worldwide, increase its ability to fulfil contracts in both the
domestic and export markets, diversify its product offering, and
penetrate the key US defence market. Since January 2012 the Group
has won GBP9.2m of new contracts (GBP7.2m in the UK and GBP2.0m in
the US), in addition to the GBP6.6m (US$10.4m) of previously
unfulfilled contracts successfully novated by the US Department of
Defense ("DoD") to Manroy's 49% owned associated company Manroy USA
in April 2012.
Manroy's order book for the financial year ending 30 September
2013 already stands at GBP6.3m, representing 41% of the Group's
forecast revenue for that year and includes:
-- a GBP4.1m order for HMG, GPMG and other ancillary equipment
for an existing customer, announced on 9 July 2012;
-- on-going delivery of the blank ammunition order to UK MoD announced on 25 May 2011; and
-- GBP0.4m in new GPMG orders for delivery during the year.
The Board remains confident that the key GBP8.0m export order
referred to in the Group's half yearly financial report will be
obtained during the calendar year 2012 and that delivery will
commence in the early part of 2013.
MUSA
As part of the Group's stated strategy of penetrating the
US$553bn defence market, Manroy has invested significantly in MUSA.
Since MUSA's successful novation of US$10.4m (GBP6.6m) contracts in
April 2012, MUSA's order book has grown by a further US$3.1m
(GBP2.0m) to US$13.5m (GBP8.6m).
MUSA continues to make progress in the First Article Acceptance
("FAA") testing and approvals process on the novated contracts.
Final approval from the DoD on certain of these contracts enabling
delivery is expected imminently, with the remaining approvals
anticipated during the remainder of 2012 and the Spring of
2013.
On 29 August 2012, Manroy also announced that MUSA had been
granted Historically Underutilised Business Zone ("HUBZone")
status, giving the company significant tendering and price
advantages over non-HUBZone companies. The Board considers that
this, along with MUSA's existing Small Business Administration
("SBA") status, will be highly advantageous in terms of winning
future contracts with the DoD.
UPDATE FOR YEAR ENDING 30 SEPTEMBER 2012
The Group reiterates its previously stated revenue guidance for
the current financial ending 30 September 2012, which it expects to
be in the region of GBP7.5m. Manroy expects that it will announce a
small loss before amortisation of intangible assets and tax for the
full year, in line with market forecasts.
PLACING
The Group also announces today that it has conditionally placed
850,000 ordinary shares at a price of 57p per share (the "Placing
Price") to raise gross proceeds of GBP484,500 in accordance with
the share issue authorities granted by shareholders at the Annual
General Meeting of the Company held on 4 April 2012. This
represents an increase of 4.7% in the issued share capital of the
Company and increases its issued share capital to 19,044,202
ordinary shares. The Placing Price represents a discount of 0.9% to
the 57.5 pence closing mid-market price of Manroy's ordinary shares
on 12 September 2012, being the last practicable date before this
announcement. Admission to AIM and dealings in the new shares are
expected to commence at 8.00am on 19 September 2012.
The Placing will enable the Group to provide MUSA with
sufficient funds which are expected to allow it to finalise the
remaining requirements of the FAA approval process. This will then
enable MUSA to begin delivering on its substantial existing order
book of contracts to the US DoD. In addition, the Directors expect
that the funds raised from the Placing will enable MUSA to become
cashflow positive in the financial year 2012/2013 and therefore
MUSA will not require further inter-group finance to fund the
delivery and execution of its GBP9.8m order book.
This placing includes a subscription for 100,526 ordinary shares
at the Placing Price by Andrew Blurton, Chairman of Manroy,
increasing his shareholding from 345,000 ordinary shares to 445,526
ordinary shares, representing 2.3% of the Company's enlarged share
capital. It also includes a subscription for 109,374 ordinary
shares at the Placing Price by Brian O'Donnell, a Director of
Manroy, increasing his shareholding from 122,526 ordinary shares to
231,900 ordinary shares, representing 1.2% of the Company's
enlarged share capital.
Following the Placing and based on the Group's current
projections, Manroy has sufficient working capital for at least 12
months following this announcement.
Glyn Bottomley, Chief Executive of Manroy commented: "We believe
the Group is poised to advance significantly over the next 12
months as a number of key contracts come to fruition. The Board
continues to view the future with confidence and believes that the
group is well positioned to take advantage a number of significant
opportunities in the coming year."
Canaccord Genuity Limited is acting as NOMAD and Sole Broker
with respect to the Placing.
Ends
Contacts:
Manroy Plc Tel: 01252 874 177
-------------------------------------- ---------------------------------
Glyn Bottomley, Chief Executive
-------------------------------------- ---------------------------------
Paul Carter, Finance Director
-------------------------------------- ---------------------------------
Canaccord Genuity Limited - Nomad and Tel: 020 7523 8000
Broker
-------------------------------------- ---------------------------------
Mark Dickenson
-------------------------------------- ---------------------------------
Tim Redfern
-------------------------------------- ---------------------------------
Ross Allister
-------------------------------------- ---------------------------------
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
MSCDBGDCLGBBGDD
Manroy (LSE:MAN)
Historical Stock Chart
From Jun 2024 to Jul 2024
Manroy (LSE:MAN)
Historical Stock Chart
From Jul 2023 to Jul 2024
