Consumer electronics products and accessories supplier Armour reported interims in line with expectations.
The 6% rise revenues to £30.2m in the six months to February 2008 was organic. Two-thirds of revenues are generated by products for the home and the rest from the automotive market. Pre-tax profit improved from £2.36m to £2.58m. This was a decent performance given the weak market.
The performance was helped by higher exports of home entertainment products and accessories. The automotive side of the business has gained from the launch of the iO range of in-care Bluetooth music streaming and mobile phone hands free products. These are stocked in Carphone Warehouse and Halfords.
Chief executive George Dexter believes that the days of price deflation in the consumer electronics market are coming to an end. The Far East manufacturers have to put up prices in order to make money. That shouldn’t be a big problem for Armour. Retailers make more money from the accessories that Armour supplies than they do from the larger consumer electronic products. The accessories also tend to be less price sensitive.
House broker FinnCap forecasts an increase in full year profits from £4.5m to £4.9m. At 34p, Armour is valued at £23.3m. The shares are trading on less than seven times forecast full year profits.
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