Manroy PLC Trading Update (7369K)

TIDMMAN

RNS Number : 7369K

Manroy PLC

01 August 2013

FOR IMMEDIATE RELEASE

1 August 2013

MANROY PLC ("MANROY" OR THE "GROUP")

TRADING UPDATE

Manroy, the AIM quoted UK defence contractor, today provides a trading update for the financial year ending 30 September 2013.

Summary

There has recently been a change in status of approved export licenses affecting one customer of the Group, a delay in delivery timing of one contract until after the September 2013 year end and a delay in finalising contract conditions for a recently won order.

The impact of these contract delays is that the Board now expects revenue for the year ending 30 September 2013 to be in the region of GBP9.0m against market forecasts of GBP12.0m.

Licenses

Previously granted export licenses for a region in North Africa have recently been revoked by the UK Government. Therefore delivery of these orders cannot be fulfilled, which has reduced current year revenue by GBP0.6m.

Delivery timing

Manroy was scheduled to deliver its first sizeable production order of General Purpose Machine Guns (GPMGs) in the second half of the current year ending 30 September 2013. Completion of new production techniques has taken longer than anticipated, meaning that this order will now be fulfilled in part in the current financial year and in part the first quarter of the year ending 30 September 2014. This reduces expected revenues for the year ending 30 September 2013 by GBP1.0m.

Finalising contract conditions

Due to the recent finalisation of contractual conditions with a new customer, GBP1.4m of expected revenue in the year ending 30 September 2013 is now expected to occur in the first quarter of the year ending 30 September 2014.

UK order book

The current order book for the UK Group stands at GBP15.0m, up from GBP9.6m at the 30 September 2012 year end.

Glyn Bottomley, Manroy's Chief Executive, said; "These events are very frustrating and overshadow the significant growth in Manroy's order book and product expansion during the year. I am disappointed that the growth in our order book and product range will not be reflected in the financial results for the year ending 30 September 2013."

ENDS

For further information please contact:

   Manroy Plc                                                        Tel [phone] 

Glyn Bottomley, Chief Executive

Paul Carter, Finance Director

   Allenby Capital                                                  Tel: [phone] 

Mark Connelly

Alex Price

   Bankside Consultants                                        Tel: [phone] 

Richard Pearson

Simon Rothschild

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 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 rifle barrels and spares 

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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