Armor Designs, an AIM-listed manufacturer of composite protective products, has reported an increase in revenue and plans to focus on a wider market going forward.
The Phoenix-based group reported sales revenue at $473,000 (£291,500) for the six months ending 30 June 2009, compared with $95,000 in the first half of 2008. However, net losses from operations increased to $6.8m from $4.4m in the first half of 2008 as a result of an increase in the level of its sales and marketing activity.
General and administrative expenses rose to $3.9m compared to $2.9m in the same period a year earlier, while capital expenditure decreased to $95,456 compared with $2.1m for the first six months of the year.
The group said that first-half results were a mix of encouraging product developments and organisational improvements, offset by delayed commercial results.
According to the company, the sales cycle for body armour had been lengthier than expected and no major US government military orders for body armour had been recorded during the first half of the year.
As a result, the group has refocused its strategy on the international market as well as supplying plates to original equipment manufacturers. The company said that this strategy had begun to pay off, with the Philippines and Mexico proving to be promising areas.
Philip Clement, chief executive, said: ‘While the first six months of 2009 were challenging, we made progress in product development, operations and cost management, which will help us to achieve our long-term strategic plan.
‘The board is encouraged by the steps taken and is excited by the accomplishments of our product development and design efforts. By broadening our product line beyond body armour, we believe the expanded market opportunities will improve Armor Designs’ financial performance and increase shareholder value.’
In the remaining half of the year, the group said that it hopes to at least double its level of sales, receive its first substantial vehicle armour order and recover from the capital deficiencies that had affected the company in 2008.