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.

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.