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)

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