News blog

Manroy

  • BY: Andrew Hore |
  • POSTED: 22/12/2010 |

Machine guns manufacturer Manroy Systems has reversed into cash shell Hurlingham and joined Aim as Manroy. 

The enlarged group raised £6m at 75p a share. Most of the £5.2m after expenses raised by the placing will be used to pay off debt. Pro forma net debt will be £454,000.

Hurlingham paid £3.1m in cash and shares for Manroy Systems. The shares ended the first day at 77p, which values the company at £10m.

Glyn Bottomley, the chief executive of Manroy Systems, will take up the same role in the quoted company. He has warranted that Manroy Systems made a pre-tax profit of not less than £2.5m in the year to September 2010. Manroy Systems reported a pre-tax profit of £904,000 on revenues of £4.6m in the six months to March 2010.  In the second half, Manroy delivered £6.2m of orders to the MoD.

Manroy’s main product is the M2 HMG, which has been supplied to the MoD for 25 years. One thing that investors need to be aware of is that the timings of large orders can make revenues and profits lumpy. Manroy believes that UK government spending cuts will not materially impact its business. Manroy intends to expand its product range and will tender for an MoD pistol contract.

Manroy markets the weapon mounting systems made by a firm called AEI. Bottomley owns 33.3% of AEI.

Manroy wants to use its 25 years of experience of dealing with the MoD to sell it more products. It intends to look for acquisitions and partnerships to expand its range. Manroy will tender for the MoD pistol replacement programme.

Hurlingham lost its AIM quotation at the end of September 2009 because it had not found a new business after it sold its hotel operations. It had £1.68m in the bank at the end of March 2010 and the original shareholders will own just over 22% of the enlarged company.

Download the December edition of AIM Journal at http://www.hubinvest.com/AIMPDFDecember2010_15.pdf

© 2024 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 This material may not be published, broadcast, rewritten or redistributed.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