Manroy Share Discussion Threads

[temelco] 15/4/2013 09:32

Excuse ignorance but what is Mello?

[interceptor2] 15/4/2013 09:30

Good question allstar, but with export approvals time scales, I haven't the knowledge to answer your question. I do know that in the last contract announcement that said "The Board anticipates that circa half of the Group's current order book (£19.0m) will be delivered during the current financial year. "

So that is £9.5m of revenue from the exising order book, which is in addition to any on going contract continuing from the last financial year. Last year MAN reported revenues of £7,392m, I wouldn't like to speculate how much higher 2013 revenues will be at this stage.

ic2...

[shanklin] 15/4/2013 09:29

Manroy were due to present at Mello this evening but have had to cancel. And the share price is up 17% today. Perhaps not a coincidence!!

[allstar_07] 15/4/2013 09:13

Indeed nice start. When would people expect the big order to be signed off-how long does that normally take?

[interceptor2] 15/4/2013 09:02

Just noticed the increase on the back of keen buying, I thought the same battlebus, it must have been mentioned somewhere.

Not surprising when the are valued at a PER of 4 for 2014.

ic2...

[battlebus2] 15/4/2013 08:56

Yes great start, maybe a mention somewhere at the weekend or more contract news would be nice :))

[cfro] 15/4/2013 08:55

Shot-gun start this morning. :-)

[thorne3] 12/4/2013 12:42

Bookbroker -I agree there is something strange about the share price action here which I cannot put my finger on.I think for a lot of investors the jury may be out until such time as 1)the £8m order is confirmed and 2) more light is shed on the MUSA situation.If these matters proceed as planned then the share price will really light up.I am advised that its merely a matter of patience.

[bookbroker] 09/4/2013 09:03

Certain mms keeping a lid on this share, should be trading alot higher, but clearly price being held back by desire to accumulate stock for buyer in the background. Recent buy of 24851 shares a case in point.

[temelco] 02/4/2013 10:36

50 day MA about to cross 150 day MA - roll on 200

[allstar_07] 31/3/2013 20:37

I'm siting on the fence with this one - doesn't seem that it is 'the' order they were expecting but strange they didn't mention it (i.e. I could see it dropping off the radar). Need to ask the company...

[temelco] 31/3/2013 20:13

So £8million still to come - sometime.

[allstar_07] 31/3/2013 19:52

I did mention at the time that it was strange not to have made any reference to the 8.0m order in the last RNS. I've dug out the relevant bits from the last years RNS's. The 8mill order was for HMG's from an existing customer. They don't mention what the latest 7.6mill order is for so impossible to tell. They did say that "key elements of these new orders are now capable of being manufactured in-house" and in the acquisition RNS state that "Possibility of synergistic costs savings to the Group through the internal manufacture of the Group's mounts, tow-bars, tripods and a majority of key GPMG components" - hence it doesn't appear to be a HMG order.

I'd have thought if it was the belated order they should have stated it. If it is not then you'd have thought they would make that point - unless they now don't expect that to come through; although they have been very confident in their releases albeit timings have been stated incorrectly.

Not the best reaction to the news (unless you sold at 70p), I wonder if people are 1) waiting for the license approval and/or 2) presuming they may need some cash to fulfil the orders. Not sure 2) is an issue as only half of order book expected this year and have restructured the debt/loan.

Anyone got any contacts at the company to find out for sure?

May 2012

"In the Group's financial statements for the year ended 30 September 2011, the Board advised shareholders 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 secured and announced in April 2012, but a substantial HMG export order from an existing customer, a large part of which was forecast to be fulfilled during the current financial year, has not yet been confirmed. The Board is still confident that the Group will receive confirmation of this key HMG export order, which is expected to generate approximately GBP8m in revenue for the following financial year. The delay in timing of awarding the contract, and taking into account the time required to secure the necessary UK Government export licence, which can only be applied for after the contract has been received, means it is now unlikely that deliveries and therefore revenue 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 as communicated by the Company to the market in its trading update on 23 April 2012. As a result, revenue for the year is expected to be GBP7.5m, which is lower than previous expectations. 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 fulfilment and delivery of this contract in that year.

The Board emphasises that the successful fulfilment of this HMG order is expected to lead to further similar sized orders in the future which will be in addition to other contracts forecast to be secured by the Group."

13th September 2012

"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."

11th December 2012
"The order book and pipeline of Manroy for the current financial year are at record levels and negotiations are at an advanced stage in respect of significant orders, in addition to those previously announced. Accordingly, the Board remains confident that Manroy will at least match market expectations of revenues for the year ending 30 September 2013.

The achievement of market expectations is not reliant on the Company securing the GBP8.0m export order referred to in Manroy's announcement on 13 September 2012. Whilst the Board remains confident this order will be won, it is now expected to be awarded during 2013."

1st Feb 2013
"These new contracts add to the Group's existing GBP9.0m order book reported in Manroy's announcement of results for the year ended 30 September 2012, increasing the order book to approximately GBP11m."

3rd March 2013
"Possibility of synergistic costs savings to the Group through the internal manufacture of the Group's mounts, tow-bars, tripods and a majority of key GPMG components...
The restructured facilities provide the Group with a GBP2.1m loan repayable over three years and an increase in the Group's overdraft facility to GBP1.0m. These new facilities are secured by standard bank debentures and securities given by the Company and its subsidiaries. "

25th March 2013
"Manroy Plc ("Manroy" or the "Group"), the AIM quoted leading UK Defence Contractor, is pleased to announce that it has received new contract orders totalling GBP8.7m from existing customers within Asia, Europe and the UK.

Included as part of these contracts is the award of a major order for GBP7.6m from an existing customer in Asia. In addition, this GBP7.6m contract, which is subject to normal license approval, involves the placing of an intra-group order to Manroy USA for approximately GBP5.0m. The balance of the new contracts is made up from several smaller but nonetheless significant export orders totalling GBP1.1m...

In addition, following the recent completion of its acquisition of Base (Manroy) Limited, further details of which were announced on 1 March 2013, the Group is pleased to announce that key elements of these new orders are now capable of being manufactured in-house.

These new contracts increase the Group's order book to approximately GBP19m, more than 70% above the GBP11m announced on 4 February 2013. This compares with total revenue for the Group during the year ended 30 September 2012 of GBP7.4m. The Board anticipates that circa half of the Group's current order book will be delivered during the current financial year."

[temelco] 30/3/2013 07:33

Good point I2. Yes of course they would have said so. So there's still ( at least) another £8m to come. I don't think delays in the USA had anything to do with it though.

[interceptor2] 29/3/2013 23:17

I think if last weeks contract wins included the £8.0m delayed contract, they would have mentioned this. We know it is an export contract from an existing customer, due to delays in the USA before, I had thought that is where the delayed contract was for, but I can't be sure. Below is some detail about the delayed contract from April 2012 trading update.

"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."

ic2...

[temelco] 29/3/2013 18:16

I don't know if this means anything but I was just thinking about the "£8million" order they have been waiting on.I don't know about anyone else, I just assumed this was the £7.6million in the £8+million of orders announced recently. But it just occurs to me that THIS £8million order may NOT be the £7.6million they announced the other day. Would they say it was £8million several times and then end up with £7.6million? I would doubt it very much. Which would mean there's ANOTHER £8million order in the pipeline. Maybe.

[temelco] 28/3/2013 16:49

What on earth prompted someone to sell 10,000 at 50p? It makes no sense. I can only think it's MMs cancelling a transaction from last week or so....

[temelco] 27/3/2013 09:26

25 day MA through 150 MA - roll on the 50 and 200

[jimmy12345] 26/3/2013 12:06

Cfroi shot my brother with an air gun, he had to get air ambulance lifted, an operation and was on crutches for 6 months.Some folk think air rifles are just toys! !

[interceptor2] 26/3/2013 12:01

Nice time to buy cfro, still looks very undervalued even after a +20% rise. I did add again today, I had some spare funds from a sale elsewhere that needed a home.

I was wondering if MAN might need to raise more working capital for the large increase in orders. But them I read about the increased banking facilities, when they made the recent acquisition. So I would assume they knew what was in the pipeline, and they should have enough working capital for now.


"Acquisition financed through restructured bank facilities that have also increased the Group's available working capital. The restructured facilities provide the Group with a GBP2.1m loan repayable over three years and an increase in the Group's overdraft facility to GBP1.0m."

ic2...

[interceptor2] 25/3/2013 22:15

Thanks for the Allenby update GHF.

I'm sure cfro has seen todays news, weather we see him or not here remains to be seen. I can't remember if he mentioned once that he was a mercenary or missionary, might have a bearing on his decision. I always get those two mixed up ;o)

ic2...

[temelco] 25/3/2013 17:39

£14.5m at 35% = just over £5million

[glasshalfull] 25/3/2013 17:08

Good to see you ic2. Can I expect cfro?

;-)

Allenby's update:

MANROY (MAN, 51p, £10m) MAJOR CONTRACT AWARD

Manroy, the UK-based defence contractor and the UK's only manufacturer of Heavy Machine Guns, has announced the receipt of new contract orders totalling £8.7m from existing customers within Asia, Europe and the UK. The contracts include a major order worth £7.8m from an existing customer in Asia and involves the placing of an intra-group order to Manroy USA for approximately £5m. Manroy's order book at the start of the financial year stood at £9m and was increased in February by the addition of new orders worth £1.8m.

The current order book, as enlarged by today's announcement, now stands at £19m and goes someway to supporting our forecast aggregate revenue over the years to September 2013 and 2014 of £23.5m. The board estimates that around half of the current order book (i.e. £9.5m) will be delivered during the current financial year which together with orders already shipped since October 2012 underpins our current year revenue expectations of £14.5m. The timing of delivery of the orders announced today is uncertain at this time- we understand that end user certificates have been received but the group now has to wait for export licences to be issued which could take up to four months, thus we see the majority of the £8.7m contributing to FY 2014 revenues.

We consider today's announcement as further proof of the effectiveness of Manroy's strategy of widening the customer base, increasing the breadth of product offering and lessening the groups previous reliance upon the MoD.

---

Regards,
GHF

[interceptor2] 25/3/2013 16:58

A golden cross which is another bullish sign, not that I know much about charting :o)

ic2...