News blog

Armour Group

  • BY: Andrew Hore |
  • POSTED: 19/11/2008 |

Armour Group is set to remain profitable this year even though the consumer electronics and automotive accessories markets will be tough.

Sales dipped by 2% to £54m in the year to August 2008, while pre-tax profit fell from £4.5m to £3.49m.

Despite exposure to the housing market the consumer electronics division has held up well. The decline in profits came from the automotive side.

House broker FinnCap has slashed its 2008-09 profit forecast from £3.5m to £1.65m. Given the state of Armour’s markets, that would be a decent performance. An unchanged dividend of 0.65p a share would still be nearly three times covered by earnings.

Net debt is £8.87m and this is forecast to fall to £7.7m by the end of September 2009 thanks to cash generated from operations. Armour has a bank facility with an attractive interest rate that will last until 2011.

Armour shares fell 1.5p to 9p each, which values the company at £6.16m. The shares are trading on less than five times prospective earnings and yield 7.2%.

Chief executive George Dexter believes the tough economic conditions will help to reduce competition and Armour may be able to pick up distributorships from those competitors.

© 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 This material may not be published, broadcast, rewritten or redistributed.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 Subscribe to AIM Micro RSS Feeds