What Does It Do.

Basically has three main sales Divisions, but its main business is supplying electronic and fitting solutions for the in car entertainment market, this division dominated by autoleads, which provides a range of cellular leads.

The second division is the Audio Electronics Division, and is dominated by VEBA which is developing a range of in car flat panel monitors and DVD players.

The third sales division is the home hi- fi market, the company produces top of the range interconnects as well as in multi-room systems.

Management

The current CEO George Dexter has put together a fairly new and ambitious management team which includes Bob Morton as non- executive chairman.

Acquisitions

In October the company bought 4 companies involved in the design, manufacture and supply of products to the specialist hi-fi, home theatre and entertainment markets.

The businesse were, Veda, Imi, Goldring and Qed, bought for around 12.5 milion and which should significantly increase growth within the company added to the existing brands.

Veba, is the jewel amongst these and focuses on the in-car audiovisual market and produces plug in and play equipment.

New Legislation.

From the 1st of December last year. it became an offence to use a hand held mobile phone while driving. The autoleads division supply cellular smart leads for linking hands free kits to the audio system, and enables the phone to be powered by the radio thus not invalidating a vehicle warranty and has safety benefits like muting the the radio when the phone rings.

It should all add up to extra sales for the division.

Broker Forecasts.

Forecasts from broker Peel hunt are as follows.

end8/2003 EPS/PER
2.7 20.3 Actual

end8/2004 3.8 14.5 Estimated

end8/2005 4.4 12.5 Estimated.

I really think these figures for 2004 are very conservative indeed, and should be beaten.

Shares in issue 52.6 million.

Medium to long term Buy.

cheers GF.

Please DYOR and you are responsible for the timing and selling of your shares.

There is further speculation that Armour will announce a further deal with Bentley.

cheers GF.

A nice rise today on a bad day for smallcaps. Things are looking sound very sound.

cheers GF.

Dropped 5 % today for no apparent reason and at this price represent a trading buy.

cheers GF.

starting to break up.......trading statement due end of march.

does anyone have an idea of the nav?........i'm sure it was around the 30p mark,with no support lines it's a bit hard to know when to top up!

i see a sar3 has been issued after the bell....i wonder who's stalking us?
i think we can safely say a rise will be on the cards wednesday.

Too cheap now. Back in.

Trading statement forecasting 5.5p eps, a 20%+ year on year growth, and debt is small for this type of business. A single figure p/e is too low for a company of this sort given growth and positive outlook. Worth buying.

Trading Statement

'Armour is pleased to report that basic underlying earnings per share for the
Group for the year ended 31 August 2005 will be in line with the current market
expectations of 5.5p per share. The operating profit for the Group is expected
to be in excess of 10% up on the prior year.

The preliminary announcement of the results for the year ended 31 August 2005
will be made on 2 November 2005.

New Distribution Agreements

Armour Automotive, the Group's in-car communications and entertainment division,
has recently entered into an agreement with Mio Technology Limited to distribute
into the automotive market the Mio range of in-car and portable satellite
navigation products. Satellite navigation is currently the fastest growing part
of the automotive accessories market and the Mio range extends the product
portfolio of Armour Automotive into this exciting growth sector.

Armour Home Electronics, the Group's home theatre and entertainment division,
has entered into an exclusive distribution agreement with Universal Electronics
BV for the distribution of its Nevo SL touch screen remote control device. The
Nevo SL is a universal controller that intuitively delivers complete audio
visual and digital media control for the networked home. It has received
outstanding reviews in the trade press and further enhances the division's
leading position in the specialist home theatre, hi-fi and entertainment market
in the United Kingdom.'

At 49.5p that seems very fair given that represents 20% y-on-y growth. Debt is relatively small for a company of this sort too.

Would have bought more if the marlets were perkier!'

Full-year profit warning from Armour Group - MoneyAM


Armour Group warned it expects its full-year results will be 20% to 30% below current market forecasts.

The company blamed 'challenging market conditions' in the third quarter that led to lower-than-expected sales volumes across operations.

'It is expected that the difficult trading environment that now exists in the group's core UK market will continue for the remainder of the reporting year and into 2009,' the consumer electronics company added.

Armour also said its unit has been named exclusive distributor for Directed Electronics, part of DEI Holdings Inc. Armour Automotive Ltd. will distribute the automotive brands in the United Kingdom, Sweden and Ireland from August 1st.

And as part of the continued investment in and development of the group, Armour Home's Alphason operations near Manchester are being moved into a new facility in Atherton.

The move will consolidate six operating locations in the home division into a single facility that will have over 100,000 sq. ft. of warehousing, offices, product showroom and training facilities. This new facility is scheduled to be operational by the end of the financial year.

StockMarketWire.com
Hawk Investment's mandatory cash offer for Armour Group is now wholly unconditional and will be extended by 14 days from the first closing date of 6 February to 20 February.