Manroy Share Discussion Threads

[energeticbacker] 02/12/2011 17:00

Bigger, better diversified business, Directors avid buyers - looks decent value
Featured in Champion Review www.investorschampion.com

[charo] 24/11/2011 09:18

unless soon wont be delivered during first half of year to sept 2012 and unlikely to reflect much in year as whole.defence cuts are the order of the day in usa exit iraq and afghanistan,plus the natural inclination to order from usa owned and managed firms.it still remains unclear just how much benefit manroy plc will get from its minority 49% holding in manroy usa.all its competitors in usa will be pushing for their share of a rapidly reducing defence budget.surprised 2011 results being published so late end jan 2012 possibly with the hope contracts placed beforehand.nervous times.

[thorne3] 18/11/2011 16:38

The newsflow appears to have gone dead.Has anybody any idea when the large U.S. order is expected to be received?

[tibrahim] 03/11/2011 22:38

Magna Mining NL (ASX:MAN) has received official confirmation that the tin, copper and gold tailings in Far Eastern Russia have now been released for economic exploitation. The Company will visit the region to finalise discussions and submission of its project application by the end of November 2011. The proposed project is located within the Khabarovsk territory, one of Russia's largest administrative regions and historically the most important tin mining region in Far Eastern Russia.

[energeticbacker] 07/10/2011 13:04

Disappointing update but still looks decent value - comment on IC Blog at www.investorschampion.com/blog

[charo] 05/10/2011 10:25

in placing notice said meeting with us def procurement understanding that 10 mill dollars of contracts would be novated implied imminently..today expected to be novated over coming months.if not dead in water.read and ponder.additionally first half profits all negative goodwill write back.

[bookbroker] 05/10/2011 08:28

Over-reaction to todays statement, they expect to meet forecasts through tight cost control and improved margins, despite the delay in rubber stamps they expect these orders to go through in the current year to end 09/2012 so no change and a potential boost to next years P/L, so why the markdown?

[temelco] 23/8/2011 15:03

They just bought a purpose built plant for $10 per square foot and trebled the size of their manufacturing capability in the States

[wstirrup] 29/7/2011 07:49

Not having any previous form with MoD contractors, nor military hardware, I assume I come to this situation wtih an open mind. It seems to me that Manroy are a business with management determined to grow this business and with lucrative MoD, and DoD contracts, no doubt down the road, perhaps some hardware to overseas clients there's strong potential for growth.

Not that I like what the product stands for. But someone has to do it, or our military would be defenceless.

I just hope we don't get into any major conflagrations, as is usual MOD Chiefs turn to the BIG GUNS (No pun intended) like BAe.

But spreading your manufacturing base, and building contacts in other country's military establishments can only be good.

W.

[temelco] 25/7/2011 20:54

... and it comes to pass.Charo - read the documents

[temelco] 13/7/2011 13:20

well if I was a professional investor, with a chance to get into the coming placing at a lower level, I would make sure the shares fell BEFORE the placing, rather than after......

[charo] 12/7/2011 07:04

shot full of lead.

[temelco] 05/7/2011 16:26

Everyone is entitled to their opinion...

[charo] 05/7/2011 16:05

market appears to take my view.

[temelco] 04/7/2011 11:33

For a start they will get the gun barrells about 50% cheaper than they are at the moment, and I would be absolutely sure ( if you know some of the Directors) that they will get the cash due to them....

[charo] 02/7/2011 20:48

how will buying a minority stake in a new venture majority owned and managed in usa by non uk people transform manroy.how will minority shareholders ensure profits are remitted to uk.caledonian will do well but other shareholders will need to wait.

[temelco] 02/7/2011 11:16

The Directors of Manroy (AIM:MAN), the UK's leading machine gun manufacturer, are pleased to announce that the Company has exercised its call option (the "Option") to acquire a 49 per cent. stake in Manroy USA LLC ("MUSA") and a 50 per cent. share in the factory premises occupied by MUSA for a total consideration of $2.5 million (GBP1.6 million).

On 3 December 2010, Manroy entered into a call option agreement (the "Option Agreement") with, inter alia, Caledonian Heritable Limited ("Caledonian") over 490 units of membership in MUSA, representing Caledonian's member's capital account in MUSA and Caledonian's 50 per cent. share in the factory premises in Scottsboro, Alabama, occupied by MUSA, at an option price of US$2.5 million (GBP1.6 million) payable in cash or in shares at the discretion of Caledonian.

The Option Agreement was due to expire on 31 March 2011 but, as announced by Manroy on 1 April 2011, it was extended to 30 June 2011 following MUSA's acquisition of related assets in the United States and Manroy's request to undertake further due diligence on the acquired assets.

Acquisition of business and assets of Sabre Defence Industries LLC by MUSA

In March 2011, MUSA completed the acquisition of the business and assets of Sabre Defence Industries LLC ("Sabre") for a total cost of approximately $6.0 million (GBP3.7 million) in cash. An initial payment of $4.95 million (GBP3.1 million) was made on 15 March 2011 for substantially all of the operating assets of Sabre and a subsequent payment of $0.63 million (GBP0.4 million) was made on 31 March 2011. The balance was provided as a loan for working capital while the MUSA management team developed the Sabre assets to their full operating capacity. This acquisition significantly increased MUSA's size and capability and the Manroy Directors consider that, following the exercise of the Option, it improves Manroy's future prospects.

Sabre was established in 2002 following the asset purchase of a business manufacturing M2 Heavy Machine Guns ("HMG"), Quick Change Barrel kits and M2 parts. These are also the principal products which are designed, manufactured and supplied by Manroy in the UK. Sabre's principal customer is the US Department of Defense ("DoD"), together with additional US law enforcement agencies and commercial customers. Sabre is based in Nashville, Tennessee and operates from a 35,240 ft(2) facility.

Over the past nine years, Sabre has completed contracts for the DoD worth in aggregate approximately $83 million (GBP52 million). As a result of the acquisition of the business and assets of Sabre, MUSA gained a barrel manufacturing line, manufacturing capacity for key elements of the HMG and production capability for M4, M5 and M16 rifles. In addition, Sabre has a commercial product line for civilian and law enforcement customers which, in due course, could potentially be sold to a trade buyer if considered by the Directors of MUSA not to be a core activity. The assets purchased include machinery at a fair market value of $4.1 million (GBP2.5 million) and work in progress and inventory currently valued at approximately $6.6 million (GBP4.1 million). Therefore, in aggregate, MUSA acquired assets with a value of $10.7 million (GBP6.6 million) for approximately $6.0 million (GBP3.7 million).

The Directors of Manroy believe that the purchase by MUSA of the business and assets of Sabre has immediately accelerated MUSA's capabilities by at least two years. This transformational opportunity for MUSA resulted from Sabre's filing for bankruptcy in late 2010 following legal action against its then management. Consequently, MUSA acquired the business and assets of Sabre from Cadence Bank in an open auction. Sabre has not supplied the DoD since July 2010 as a result of this legal action; however contracts with the DoD, worth approximately $10.2 million (GBP6.4 million), are in the process of being novated to MUSA. MUSA's management expects the manufacture and supply of Sabre's products to resume shortly. MUSA's management intends to fully integrate Sabre's business and assets into the current MUSA business and will manage the enlarged company without the previous Sabre management.

Caledonian provided a loan to MUSA of approximately $2.7 million (GBP1.7 million) for Caledonian's 49 per cent. share of the acquisition cost of the business and assets of Sabre. By exercising the Option, Manroy is proposing, subject to shareholder approval as set out below, to advance $2.8 million (GBP1.8 million) to MUSA to enable MUSA to repay this loan along with interest of approximately $0.1 million. The Directors of Manroy are considering various funding options in this regard and will make a further announcement as appropriate.

MUSA Option Agreement

Under the terms of the Option Agreement, Caledonian is entitled to elect to receive the consideration of US$2.5 million (GBP1.6 million) in either cash or ordinary shares of 5p each in the Company ("Ordinary Shares"), to be issued at 75p per share, which was the placing price at the time of the Company's admission to trading on AIM in December 2010 when the Option Agreement was entered into.

As Caledonian is a member of the concert party, which is currently interested in 39.2 per cent. of the Company's issued share capital, in the event that Caledonian elects to receive its consideration in Ordinary Shares, the Company will seek a waiver of the obligations of the concert party under Rule 9 of the City Code on Takeovers and Mergers (the "Whitewash"). Any such Whitewash would require approval of the Company's independent shareholders at a general meeting. Any allotment of Ordinary Shares would be deferred until the business day immediately following expiry of five days following approval of the Whitewash by independent shareholders.

Further details regarding MUSA

MUSA was incorporated in 2009 and since then has received technical and business development support from Manroy. MUSA is owned as to 51 per cent. by John Buckner, an experienced operator in the US defence industry, with the balance currently owned by Caledonian.

MUSA's strategy is to sell into the US defence market, through licensing technology and products, and to provide support in the same manner as Manroy provides to the MoD and its export customers. A technical assistance agreement has been finalised which has been endorsed by the US Department of State confirming US authority for the technical agreement between Manroy and MUSA.

In addition to the acquisition of the business and assets of Sabre, a further recent significant development for MUSA is the receipt of confirmation that it is a recognised Small Business, under the Small Business Administration ("SBA") in the United States. Confirmation of this status from the SBA enables MUSA to tender for additional contracts and improves its prospects of winning those contracts. This is expected to enable MUSA to generate significantly increased revenue and profitability.

MUSA is managed by John Owens (President) and a number of senior managers. It is expected that, following exercise of the Option, Glyn Bottomley, Manroy's Chief Executive, and David Low, a Non-Executive Director of Manroy, will represent Manroy on the board of MUSA.

Glyn Bottomley, CEO of Manroy, said: "We are very pleased to have exercised our option to acquire the stake in MUSA. Since we entered the Option Agreement in December 2010, MUSA has significantly developed as a business - firstly through the acquisition of Sabre's assets and secondly through gaining accreditation from the Small Business Administration. Both of these will have a very positive impact on MUSA and will consequently enhance Manroy's prospects."

[temelco] 02/7/2011 11:06

Well that's th MUSA deal done. Transformational IMHO

[temelco] 10/6/2011 15:55

They haven't got long to tell us about MUSA. I would think they will be able to halve the cost of gun barrels, reading about the company in the States.

[skyracer] 09/6/2011 14:48

A number of adjustments have to be made to reach the ongoing (profitable) position. Note 7 is helpful.

[charo] 09/6/2011 11:04

deduct negative goodwill credit and hey presto we have an operating loss.

[cliley454] 09/6/2011 08:44

Great set of results, looks like things are progressing nicely and we should see a re-rating of the share price imho.

Off topic take a look at CXM, market cap just £400k. They have posted a bullish update on their website which hasn't been released to the market yet. I've just posted it on the CXM bb.

[wjccghcc] 09/6/2011 08:14

The 12.5p figure isn't the underlying EPS. It's distorted by the takeover accounting - in particular a negative goodwill credit and the average number of shares being low due to the timing of the acquisition.

[cockneyrebel] 09/6/2011 08:09

12.5p eps in H1 and paying a divi.

What's the PE then?

Looks rather cheap, especially if they do that again in H2.

CR

[temelco] 26/5/2011 17:17

Nice contract win. Nice new near 5% shareholder.....