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Manroy Plc (LSE:MAN) announced today that the U.S. Department of Defense had novated contracts worth £6.6 million to its subsidiary Manroy USA (aka MUSA).
The Contract & Its Impact
Terms of the contract specify that MUSA will supply barrels and bolts for the M2 Heavy Machine Gun. MUSA will supply £4.9 million worth of barrels and bolts, whilst they have committed to supply £1.6 million of M16’s. MUSA will begin contract fulfillment with production beginning this month at its new manufacturing facility in Spindale, North Carolina.Prior to the awarding of the contract, the DOD facilitated a series of comprehensive audits of the company’s entire operating system, including, but not limited to, process control, product security, quality, and finance. The successful compliance with the DOD standards not only permitted the awarding of this new contract, but also fully qualified MUSA to bid on and be awarded future contracts for weapons and ammunition. The company was recently awarded other contracts in the amount of £1.3 million and it anticipates additional contract awards in the near future. The awarding of these contracts now gives Manroy a foothold in the world’s largest defence market.
Corporate Comments
Manroy CEO Glyn Bottomley observed that “The novation of these contracts to MUSA and the accreditation of its production capabilities is a major step forward in our planned expansion into the US defence market. This will also enable MUSA to bid directly for future defence contracts for the supply of the M2 HMG to the DoD for which it is qualified. MUSA continues to be the cornerstone of our expansion into this part of the world’s largest defence market thereby enhancing the Group’s overall ability and future performance.”
Company Spotlight
Manroy plc is an AIM-listed group which specializes in weapon design, production and mounting for the infantry, AFV, and naval platforms. In addition to manufacturing complete gun assemblies, Manroy also provides a complete range of spares and training for proper use of its products. Its popular M2 HB .50 cal Machine gun, which can be mounted all types of armoured vehicles, patrol boats, helicopters, and light aircraft, is used by more than 80 countries. The company’s products range from it 20mm ME Cannon to 7.62 mm general purpose machine guns, to accessories such as tripods and barrel conversion kits. Its MUSA division manufactures M16, M4, and M5 weapons.
