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Armour Group

  • BY: Andrew Hore |
  • POSTED: 15/05/2012 |

Armour Group is borrowing a further £800,000 from Hawk Investments, a company controlled by its chairman Bob Morton.

This takes the Hawk loan to £2m - £1.2m was loaned in July 2011. This follows the profit warning earlier in May on the back of weak consumer demand. The consumer electronics business had been expected to return to profit this year but it will continue to lose money even after cost cutting.

The in-car entertainment business continues to prosper but home electronics is weak.

Armour already has £16m worth of facilities with GE - £7m drawn down at the end of April 2012. Lower sales mean that it is difficult to fully use these facilities because they are based on invoice discounting and stock levels.

Raising cash from Hawk, which owns 29.9% of Armour, is much more sensible than borrowing from banks. The £800,000 loan lasts until 23 July and costs 1% a month in interest.

Bob Mortonís total stake is 39.1%.

At 3.75p a share, down 0.88p, Armour is valued at £3.64m.

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