Machine gun maker Manroy Systems is to float on AIM in December after reversing into cash shell Hurlingham.
Hurlingham, which was forced to delist from AIM in October 2009 when the company failed to find a suitable investment, wants to raise £6 million in the share placing to expand Manroy – the UK’s only machine gun manufacturer.
The combined company will be called Manroy and plans to move into new territories, reduce debt and increase its product range to include small arms, rifles and pistols.
Manroy, which has supplied firearms including its flagship M2 heavy machine gun to the Ministry of Defence for 26 years, made a pre-tax profit of £1.2 million on revenue of £11.7 million for the year to September last year.
Manroy chief executive Glyn Bottomley says: ‘We currently build and supply some of the essential equipment British troops need when serving our country.
‘We also have significant overseas customers and are looking to use this opportunity to expand further, both in terms of customers and product range.’