Investment summary

Management has responded to a major reversal in the group's Home division, cutting the cost-base by £2.5m, but without undermining the flow of new innovative products, which is the lifeblood of the business. Several recent new product introductions and others in the pipeline point to a more positive outlook, despite the challenging UK consumer goods market. The balance sheet remains under tight control, with gearing of 24%. The forthcoming interim results announcement should indicate the group on course for much improved results in the current year.

Last updated on 29/03/2012

Industry outlook

The macro environment remains fragile, with consumers holding back on expenditure because of fears about government spending cuts. Experience shows businesses that invest in innovation and quality consistently outperform their peers, despite the short-term impact on the bottom line. We continue to support Armour's investment strategy, which should ultimately drive recovery, but the short-term outlook across the sector remains challenging.

Last updated on 29/03/2012