News Column

Manroy Interim Loss Widens; Takeover By Herstal Has 95% Acceptances

June 30, 2014

Rowena Harris-Doughty

LONDON (Alliance News) - UK defence contractor Manroy PLC Monday said its losses widened in the first half of its financial year, due to hefty exceptional costs.

The British maker of heavy machine guns, weapon mounting systems and turrets posted a pretax loss of GBP2.3 million for the six months ended March 31, compared with the GBP816,000 loss it reported a year earlier, due to settlement and liability costs totalling more than GBP2 million.

Revenues in the period increased to GBP4.8 million, up from GBP4.0 million the prior year.

"The main operational highlights in the first six months of the financial year were the successful delivery of our new general purpose machine gun product, the continued development of our new military rifle product, continued order generation and the ongoing site consolidation planning," the company said in a statement.

The company said its order book and revenue generation is heavily weighted towards the second half of the year.

Back in March, Manroy agreed to a GBP16 million takeover by Belgian firearms company Herstal SA, ending months of talks that eventually hinged on a sale of Manroy's stake in a US business for a nominal sum. It said shareholders will get 85 pence in cash for each share in the deal which its board has recommended.

Manroy said Monday that the offer has received acceptances for 95.4% of its issued shares.

Manroy shares were untraded Monday afternoon; they were last quoted at 84.12 pence.

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Source: Alliance News

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