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About Us
Overview | History | R & D | Unrivalled Distribution
Armour Group plc (“Armour”, formerly Armour Trust plc) was a small, fully quoted company that listed in the 1970s. It has been involved in a variety of businesses ranging from confectionery, personal care, property and electronics for the automotive aftermarket.
In the first half of 1998 with the appointment of a new Chief Executive in April 1998 and a new Finance Director in February 1999 a programme of reengineering commenced.
1998
In 1998 the group disposed of some freehold properties it no longer occupied and sold House of Despina to Burlington Toiletries in July of that year. This sale was followed by the sale of the IPR of the products owned by Solid Products and the sale of the investment in Mercia Fragrances. In total over the course of 1998 the sale of the Personal Care Division realised approximately £1m in cash.
In the year to 30 April 1999 (the then year end for the Group) Armour generated £1.8m in cash and reported a profit before tax of £0.7m.
1999
In 1999 a full review was performed on the remaining businesses in the Group. In the case of Radiomobile, there was an opportunity to acquire the Autoleads business which was highly profitable with good growth potential. With the backing of Lloyds TSB, the group acquired Autoleads in July 1999 for approximately £1.9m and on 1 January 2000, having appointed a new MD, merged the Radiomobile businesses into the newly acquired Autoleads to form the Automotive Division.
The review of the remaining business concluded that, whilst they were profitable overall, the markets served were unattractive. The automotive aftermarket for chemicals and general accessories was mature, over-subscribed, highly competitive and in the opinion of the executive ultimately in decline. Consequently, the decision was taken to look for an exit from these remaining businesses.
This strategy of disposing of what was considered non-core was executed over the following 18 months. A summary of the disposals is as follows:
| February 1999 |
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Autosheen sold for £20k. |
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| May 1999 |
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Cords Piston Rings sold for £30k. |
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| April 2000 |
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Bluecol, Bars, Airfresh sold for £10.5m to Pennzoil Quaker State. |
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| July 2000 |
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Polco Products Limited sold for £1.5 million and the buyer took over the overdraft of in excess of £2.0 million. |
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This strategic repositioning of the Group transformed the net debt position of over £5m to a net cash position of £5m, the group shareholders funds increased from £3.2m to £8.2m and the continuing activities of the Group were highly profitable and growing at a double digit rate.
RECENT AQUISITIONS
On 10 March 2003 Armour (through Armour Automotive) purchased Continental Technologies & Investments Ltd (“CTI”), which designs and manufactures GPS and GSM aerials for the automotive and marine markets. The consideration, which was payable in cash, totalled approximately £1.8 million.
CTI, located in Fareham, employs approximately 30 people and supplies a customer base predominantly in mainland Europe. The CTI product range of GSM / GPS aerials and antennae complements the mobile communication products currently sold under the Group’s Autoleads brand and has enabled the Group to offer a full range of products for hands-free mobile phone communications. This market has grown significantly as a result of the change in legislation in the United Kingdom regarding the use of mobile phones in vehicles.
Acquisition of Veda, QED, Goldring, IMI and the formation of Armour Home Electronics
Armour Home Electronics was formed on 31 October 2003 from the acquisition of Veda Products Limited, QED Audio Products Limited, Goldring Products Limited and Integrated Media Installations Limited, which were all involved in the design, manufacture and supply of high end products and services for the specialist hi-fi, home theatre and entertainment market. The consideration for Veda, QED, Goldring and IMI totalled £12.5 million of which £11.0 million was payable on completion.
The four companies accounted for approximately 45% of the enlarged Group’s annualised sales in the year to Augusrt 2004 and are market leaders within their niche markets.
Hi-End Acquisition
On 23 September 2004 Armour acquired Hi-End Limited, a specialist company providing design integration and installation services for home theatre and home automation systems. Hi End was set up in 1996 to service the increasing demand from residential property owners for automated systems to manage the home environment. It provides custom design and installation services to integrate home entertainment, computer networking, lighting and telephone systems. The company is based in South West London and employs 8 people.
Hi End has been integrated into the service based custom installation business within Armour Home Electronics. The acquisition will extend the Group’s coverage to include the retro-fit installation market and will be complementary to its existing activities which are focused in the new build pre-wire market.
Myryad Acquisition
On 4 November 2004, the Group acquired Myryad Systems Limited, a small specialist hi-fi business. Myryad, which designs and manufactures a range of amplifiers, CD players, FM tuners and DVD players, is being integrated into the product business within Armour Home Electronics. This acquisition will strengthen and complement the existing brand portfolio.
Audica Distribution and Investment
In September 2005 Armour Group was appointed as the exclusive UK distributor for Audica Limited, a designer and developer of lifestyle speakers and home theatre elecronics. As a result of the success of this agreement and the potential in the brand and new products in the pipeline, the Group completed a 25% strategic investment in Audica in September 2006.
Alphason Aquisition
On February 6th 2006: Armour Group plc, announced its acquisition of the leading home entertainment furniture manufacturer Alphason Designs Ltd. The acquisition was undertaken to further strengthen Armour’s position in a growth sector of the audio visual (AV) market driven by the increasing demand for flat screen televisions; to create a comprehensive UK distribution network into the consumer electronics market; and to deliver cost savings through improved sourcing of product. Alphason, which was incorporated in 1985, has been designing, manufacturing and distributing specialist AV furniture for over 10 years, predominately marketed under the brand Alphason. It has established very strong distribution channels across the whole of the UK consumer electronics market with direct access to over 2,500 retail outlets that range from the specialist independent retailers through to the multiples that include John Lewis Partnership, Comet and Argos. |
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