Such an undervalued company IMO worth a bit of research and the chart is looking very tasty too...........


Allenby Note
We initiate coverage of Manroy with a Buy recommendation and fair value of 60p offering 46% upside to the current share price of 41p. This recommendation is based on the recovery in profits expected in the current year to 30 September 2013 and a share price which is reflecting the historic issues that adversely impacted the FY 2011/12 outcome and nothing for the much improved performance that we anticipate being delivered against the group’s record order book. Manroy recently announced losses for the year to 30 September 2012, primarily as a result of delays in the novation of US contracts by the Department of Defense (DoD), a delay in the receipt of First Article Acceptance (FAA) from the DoD and a delay in the confirmation of a particular export order for Heavy Machine Guns from a major customer. In addition, the relocation of Manroy USA (MUSA) from two existing facilities into new premises in North Carolina also negatively affected results from this 49% owned associate. These delays and one-off costs will serve to enhance prospects for the current year as the group expects the export order referred to above, and others, to be confirmed. Novation was received in April 2012 and the FAA process is progressing well, albeit having taken much longer than expected. Meanwhile, a record order book of £9m in the UK and $13.2m (£8m) from MUSA, together with a very encouraging pipeline of contact opportunities augurs well for further revenue generation. Concerted efforts by management to increase export business and widen the group’s product base have met with success and now places the group in arguably its best position since float to deliver improved returns this year. Our forecasts for FY 2012/13 call for a near doubling of revenue to £14m, an adjusted PBT of £1.86m and EPS of 7.7p, rising to £17m, £3.18m and 13.6p respectively for FY 2013/14. The resulting PER of 5.3x falling to 3.0x compares to a sector average of 10.9x and 11.0x respectively and illustrates the significant discount that Manroy trades on against the sector average. Assuming our forecasts are met we anticipate the group returning to the dividend list and prudently look for a dividend of 1p, rising to 2p next year. We consider the current depressed share price as offering an attractive entry point for investors and reaffirm our Buy recommendation. (IJ)

Have a look at this - it has really made me laugh! www.thegaffer.com

Sp doing well for us temelco :-)

Big day tomorrow.....

The most interesting thing at the AGM - apart from the much larger number of people there than usual was in connection with MUSA. As well as saying the order book was up, the FD confirmed that a) it was trading profitably b) it was on track to make a good profit for the year c) the cashflow was positive. Glyn Bottomley added they had delivered and been paid for $500,000 of commercial equipment in the last six weeks and that the (potential) gun law didn't look as if it was going to make any difference to their commercial operation. David Low then chipped in that effectively ALL the sales in the last few weeks, although they had to be accounted for in the P&L, were cash straight into the bank as the costs had already been paid for. I thought a very upbeat AGM. Glyn also mentioned they had 14 new customers over the last 18 months. Hope that helps

Manroy has announced the earnings enhancing acquisitions of certain trade and assets of Base Enamellers (Base) and certain assets of RJL Engineering (RJL) for an aggregate consideration of £0.8m cash, to be funded through the group’s own resources. Over the past two years Base has been working with Manroy as a strategic supplier on important elements of the group’s new General Purpose Machine Gun (GPMG) which Manroy has recently begun to market to customers in both the UK and export markets. In addition to the GPMG programme, Base has provided sub-contract support for Manroy on other product lines including lightweight towbars, lightweight tripods and other weapon mounting solutions. By acquiring Base, Manroy brings this engineering expertise in-house, thus benefiting from the skills and synergistic cost savings that this delivers. In addition, we see the acquisition improving manufacturing controls and efficiencies while Manroy will inherit the additional revenue streams derived from Base’s own customer base, many of whom operate as original equipment manufacturers and contractors to the defence industry. Revenue from Base for the year ended 30 September 2012 was approximately £2m of which c.50% related to work generated from Manroy orders. The acquisition of Base/RJL will be consolidated into Manroy’s accounts for seven months of the current financial year ending 30 September 2013 and we are assuming that Manroy’s revenues will increase by around £0.5m and by £1m in FY 2013/14, both forecasts obviously reflecting only the non-Manroy sales within the Base/RJL business. We have also assumed that the elimination of the third party margin will boost Manroy’s gross margin by 200 bps in the current year and 300 bps in 2013/14. After accounting for the increase in the cost base we have raised our adjusted PBT/EPS forecasts for Manroy in the current year from £1.86m/7.70p to £1.925m/7.97p and for 2013/14 from £3.18m/13.57p to £3.30m/14.08p. Since initiating research coverage on the company on 17 January 2013, the shares have risen by 43% to 58.5p before recently easing back to the current 56p, going some way to confirming our initial fair value figure of 60p. In consideration of the above acquisition and the recently announced increase in Manroy USA’s order book from $13.2m to $14m we are moving our fair value estimate up to 70p and will review it further after the group’s interim results or earlier on additional news flow. (IJ)

Hmmm definitely a move afoot methinks

Well that's a start we are back to where we were last July. So now we are worth - what -£13 million. If what Glyn Bottomley says is right that means they should earn IRO £3-3.5m this financial year. ie under 4 PE. IC 2 is more than right.....The price will, of course, drop back, because the MMs need to get some stock in, but I'd say the trajectory of the share price will have shifted from down to up. One of the interesting things is the chart - believe it or not - is not yet screaming buy. But6another week or two at or above these levels and it will.
MANROY PLC

MAJOR CONTRACT AWARDS UPDATE

Manroy Plc ("Manroy" or the "Group"), the AIM quoted leading UK Defence Contractor, is pleased to announce that it has received new contract orders totalling £8.7m from existing customers within Asia, Europe and the UK.

Included as part of these contracts is the award of a major order for £7.6m from an existing customer in Asia. In addition, this £7.6m contract, which is subject to normal license approval, involves the placing of an intra-group order to Manroy USA for approximately £5.0m. The balance of the new contracts is made up from several smaller but nonetheless significant export orders totalling £1.1m.

In addition, following the recent completion of its acquisition of Base (Manroy) Limited, further details of which were announced on 1 March 2013, the Group is pleased to announce that key elements of these new orders are now capable of being manufactured in-house.

These new contracts increase the Group's order book to approximately £19m, more than 70% above the £11m announced on 4 February 2013. This compares with total revenue for the Group during the year ended 30 September 2012 of £7.4m. The Board anticipates that circa half of the Group's current order book will be delivered during the current financial year.

Glyn Bottomley, Manroy's Chief Executive, said:

"These major orders are the result of high customer confidence in Manroy following successful delivery of previous orders. They are a testament to the hard work of everyone within the Company and they take the Manroy order book to a new record level. These are exciting times for everyone involved at Manroy, and we look forward to making further positive announcements during the coming months."

I don't know if this means anything but I was just thinking about the "£8million" order they have been waiting on.I don't know about anyone else, I just assumed this was the £7.6million in the £8+million of orders announced recently. But it just occurs to me that THIS £8million order may NOT be the £7.6million they announced the other day. Would they say it was £8million several times and then end up with £7.6million? I would doubt it very much. Which would mean there's ANOTHER £8million order in the pipeline. Maybe.

50 day MA about to cross 150 day - nice

From company statement 25/3/13 " These are exciting times for everyone involved at Manroy, and we look forward to making further positive announcements during the coming months."
So the rise today hasn't been on any information that I can see, and I understand they have cancelled an investor evening at Mello. It can only be because they are about to make an announcement of some sort and don't want to mislead the market. Oh, and 50 day not far off crossing 200 day MA

Well I guess that's the Cross....

What's quite interesting is that - so far - despite the market being quite jittery, quite substantial bits of stock seem to be being absorbed perferctly happily by the .

MAN this looks good..


Manroy PLC Contract win
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TIDMMAN

RNS Number : 3292N

Manroy PLC

05 September 2013

5 September 2013

MANROY PLC ("MANROY" OR "THE GROUP")

NEW EURPOEAN GOVERNMENT CUSTOMER CONTRACT AWARD

Manroy, the AIM quoted UK Defence Contractor, is pleased to announce that it has been awarded a EUR1.7m (GBP1.4m) contract from a new European Government customer.

It is expected that the contract, for Heavy Machine Gun spares, will be delivered before 31 December 2013, with deliveries commencing in September 2013, subject to standard license approval processes.

Glyn Bottomley, Manroy's Chief Executive, said "This is a fantastic win with a European Government customer against strong competition. This contract also includes a 7 year exclusive framework agreement for further orders."

ENDS

From Allenby
MANROY (MAN, 48.5p, £9.2m) NEW CONTRACT



New contract wins helps support 2013/14 earnings forecasts

Manroy has announced a follow-on order from a European Government worth €2.1m (£1.8m) for Heavy Machine Gun spares. In September the customer placed its initial order valued at €1.7m (£1.4m) bringing the total order value from this customer to €3.8m (£3.2m), all to be delivered in the current financial year ending 30 September 2014. In August, Manroy warned that due to production delays, a later than anticipated finalising of terms and conditions with a new customer and a change in the status of an approved export license, revenues for the year to September 2013 would be around 25% below market expectations (i.e. £9m against an original expectation of £12m). Two thirds of the revenue shortfall was due to issues outside of the group’s control and typify the sometimes uncertain dynamics of export-led defence business. As a consequence, we reduced our expectations from an adjusted profit of £1.5m to just breakeven. However, a significant element of the revenue shortfall is expected to be delivered in the current financial year and the addition of these latest orders, just two months into Manroy’s new year, helps support our confidence of the group’s ability to deliver our earnings forecast of 14.1p which puts the stock on a very undemanding multiple of 3.4x. (IJ)

Starting to get a bit of forward momentum and stability....

So there you have it

Manroy PLC Statement re share price movement


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TIDMMAN

RNS Number : 9483T

Manroy PLC

26 November 2013

Manroy PLC ("Manroy" or the "Company")

Statement regarding recent share price movement

Manroy, the AIM quoted UK defence contractor, notes the recent movement in its share price and confirms that it is in very preliminary separate talks with each of Herstal SA ("Herstal"), Beretta Holding S.p.A. ("Beretta") and U.S. Ordnance, Inc. ("USO"), which may or may not lead to an offer being made for the whole of the issued share capital of the Company.

There can be no certainty that a formal offer will be made for the Company or the terms on which such an offer may be made.

This announcement does not amount to a firm intention to make an offer under Rule 2.7 of the City Code on Takeovers and Mergers (the "Code").

As a consequence of this announcement, an 'Offer Period' has now commenced in respect of the Company in accordance with the rules of the Code.

In accordance with Rule 2.6(a) of the Code, Herstal, Beretta and USO must, by not later than 5.00 p.m. on 24 December 2013, being the 28(th) day following the date of this announcement, either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. This deadline will only be extended with the consent of the Panel in accordance with Rule 2.6(c) of the Code.

In accordance with Rule 2.10 of the Code, the Company confirms that, as at the close of business on 25 November 2013, its issued share capital consisted of 19,044,202 ordinary shares with a nominal value of 5 pence each ("Ordinary Shares"). The International Securities Identification Number for the Ordinary Shares is GB00B4L12X65. Also in accordance with Rule 2.10 of the Code, Herstal has confirmed to the Board of the Company that any offer, if made, is likely to be solely in cash.

A further announcement will be made in due course, as appropriate.

Enquiries:

Manroy Plc Tel: 01252 874 177

Glyn Bottomley, Chief Executive

Paul Carter, Finance Director

Opus Corporate Finance Tel: 020 7025 3600

(Financial Adviser & Rule 3 Adviser)

Looks like a golden cross too..

Interesting development..

MANROY PLC ("Manroy" or the "Company")

PRODUCTION EXPANSION, ASSOCIATED FUNDING FROM A RELATED PARTY

AND REVIEW OF STRATEGIC OPTIONS RELATING TO MANROY USA

Manroy, the AIM listed UK Defence Contractor, is pleased to announce that it is expanding production capacity at its Slade Green facility to enable construction of military rifles. The total capital expenditure and working capitalrequired for this expansion is estimated at GBP0.75m.

Funding for this expansion has been provided by Caledonian Heritable Limited ("Caledonian"), a 23.1% shareholder in Manroy, pursuant to a loan agreement entered into on 28 November 2013 (the "Loan Agreement"). This funding and associated interest totalling GBP0.35m is structured to be repaid by 28 November 2014 from the cashflow receivable by Manroy on sales of the resultant products to an existing customer. Orders for these sales were announced on 25 March 2013 and originally envisaged an intra-group order of approximately GBP5.0m to Manroy USA ("MUSA"). However, the new production capacity will enable these to be manufactured entirely by Manroy in the UK, thereby significantly increasing the profit earned by the Group from these sales. UK Government export licences for these products have already been obtained by Manroy.

Given Caledonian's shareholding in the Company, entry into the Loan Agreement by the Company is considered to be a related party transaction pursuant to Rule 13 of the AIM Rules for Companies (the "Transaction"). The Company's directors, having consulted with the Company's nominated adviser, Allenby Capital Limited, consider that the terms of the Transaction are fair and reasonable insofar as the Company's shareholders are concerned.

On 20 December 2013 theCompany announced that in accordance with Rule 2.6(a) of the Code, each of Herstal SA ("Herstal") and Beretta Holding S.p.A ("Beretta") must, by not later than 5.00 p.m. on 14 February 2014, either announce a firm intention to make an offer for the Company in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer, in which case the announcement will be treated as a statement to which Rule 2.8 of the Code applies. The Company also announced that it could approach the Panel for an additional extension to this deadline in due course in accordance with Rule 2.6(c) of the Code. Further to that announcement, Manroy confirms today that it is considering strategic options relating to its 49% shareholding in MUSA.

Glyn Bottomley, Manroy's Chief Executive, said: "This increase in production capacity, and its associated funding, are expected to produce significantly increased profitability on this contract than previously because major components will now be manufactured in-house rather than being sourced externally. The additional review of strategic options for our investment in MUSA is planned to enhance value for our shareholders."

ENDS
This is MOST interesting and very positive IMHO