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Manroy

  • BY: Andrew Hore |
  • POSTED: 02/06/2013 |

Interim figures from heavy machine guns supplier Manroy show an improvement in revenues and the order book is strong. 

In the six months to March 2013, revenues improved from £3.4m to £4.13m and there was a significant change in the geographic mix with all the growth coming from exports. UK revenues slumped from £2.5m to £730,000. The underlying loss fell from £409,000 to £394,000. On top of this loss there was a loss from 49%owned Manroy USA, which fell from £653,000 to £468,000.

There was a cash outflow of £1.5m in the first half because of an increase in working capital. Manroy was up to the maximum level of its bank facility with net debt of £3.09m. Cash from one order came in just after the period end. Allenby reckons that net debt will be back down to £1.18m by the end of September.

The second half should be much stronger. The groupís order book is worth £29.5m - £15.8m in the core business and £13.7m in the US. A significant chunk of this will come through in the second half. House broker Allenby forecasts full year revenues of £12m. There are also potential cost savings from integrating manufacturing business Base. A profit of £1.55m is forecast for 2012-13, although this is a downgrade from £1.9m. There are still plenty of tax losses and the shares are trading on eight times prospective earnings.

The Scorpio turret continues to be tested and trialled and it will not be a revenues generator for a year or more.

At 54p a share, Manroy is valued at £10.3m.

Download the latest AIM Journal from http://www.hubinvest.com/AIMPDFMay2013_44.pdf

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