News blog

Armour Group

  • BY: Andrew Hore |
  • POSTED: 25/07/2011 |

Consumer and automotive electronics products supplier Armour Group has arranged a £1.2m loan from interests related to its chairman and its share price has slumped.

The share price fell 1.62p to 2.38p, valuing Armour at £2.3m. Earlier this year, Armour raised £2m at 7p a share.

Hawk Investments is loaning £1.2m to Armour for 364 days and the interest rate is 1% a month. Hawk is controlled by Bob Morton who owns 29.9% of Armour and is its chairman. Morton along with related parties owns 39.1% of Armour.

House broker FinnCap had forecast net debt of £8m by the end of August 2011. The company has facilities totalling £16m and £7.8m had been drawn down at the end of June 2011. These facilities have invoice discounting and inventory elements and this means they canít be fully utilised because of poor trading. 

In the six months to February 2011, revenues fell one-fifth to £23.8m and the underlying loss was £669,000 - even before £1.1m of restructuring costs. The retail consumer electronics division fell into loss but the automotive division increased its profit. 

The automotive division is still trading well but the retail side remains tough. It looks likely that Armour will lose more than the £1.7m currently forecast for the year to August 2011. Cost cutting and overseas growth mean that Armour should return to profit next year.

Download the June 2011 edition of AIM Journal at http://www.hubinvest.com/AIMPDFJuly2011_22.pdf

© 2021 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Browse by issue
All issues
Popular tags
All tags

betbrokers, financial, gold, health, leisure, media, mobile, resources, services, technology

AIM Micro feeds

Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds