Machine guns manufacturer Manroy is raising £485,000 from a placing at 57p a share.
The cash will be used to finalise the requirements for government approval in the US. The US business can then start to make deliveries from its order book, which is worth £9.8m, and it should become cash flow positive in 2012-13.
This year’s revenues should be in line with expectations of around £7.5m. There will be a small loss before amortisation in the year to September 2012.
The group order book for 2012-13 is already worth £6.3m – 41% of forecast revenues. Management believes Manroy will win an £8m export order in the next few months.
At 58p a share, Manroy is valued at £10.6m.
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