Preliminary Results

ARMOUR GROUP PLC

 ("Armour" or the "Group")

Preliminary Results for the year ended 31 August 2010

FINANCIAL HEADLINES

§ Sales £56.6 million (2009: £51.6 million).

§ EBITDA* of £2.8 million (2009: £3.0 million).

§ Profit after taxation £0.9 million (2009: £0.9 million).

§ Basic earnings per ordinary share 1.4p (2009: 1.4p).

§ Cash generated from operations of £1.8 million (2009: £7.2 million).

§ Net debt £5.7 million (2009: £4.9 million).

* EBITDA is defined as profit before interest, taxation, depreciation, amortisation and share-based payments.

George Dexter, Chief Executive of Armour Group plc commented:

"I am very pleased that we have increased our sales by 10% this year, despite the continuing uncertainty in sales volumes from month to month. Sales in the first four months of the year were very encouraging but weakened in January, due to the poor weather, and July after the football World Cup. Predicting demand has proved difficult for both us and our customers.

Our growth has come from a number of areas which includes continued development of our operations in Asia and Scandinavia and the benefit of new products. Armour Auto sales into the agricultural and commercial vehicle channel increased by 17%, the office furniture initiative contributed sales of over £2 million and new products including QTV2 and QED Profile, were introduced through Armour Home's retail channel.

We have experienced continued pressure on margins due to weaker sales mix, continuing sales price competition and promotional activity which also includes the launch of products through trade shows and subsequent marketing.

We are continuing to deliver on new initiatives and the fundamentals of the Group remain sound. Nonetheless, the economic outlook remains unpredictable and challenging, particularly for the first half of the new-year. Consequently, the Group management have an ongoing operational review looking at all aspects of our business and how it can be streamlined with regard to reducing cost and improving efficiency."

For further information please contact:

Armour Group plc Tel: 01892 502700

George Dexter, Chief Executive

John Harris, Finance Director

FinnCap, Nominated Adviser and Broker Tel: 0207 600 1658

Geoff Nash

Stephen Norcross (Sales)

Threadneedle Communications, Financial PR Tel: 020 7653 9850

Trevor Bass, Alex White

ARMOUR GROUP PLC

 ("Armour" or the "Group")

Preliminary Results for the year ended 31 August 2010

CHAIRMAN'S STATEMENT

The turbulence emanating from the uncertain economic environment has again had a major impact on the Group's performance in the year 31 August 2010. Whilst it is pleasing to report that the Group sales increased to £56.6 million (2009: £51.6 million), it is disappointing to report that the profit from operations fell to £1.2 million (2009: £1.5 million). Basic earnings per ordinary share were 1.4p (2009: 1.4p). No dividend is proposed for the year (2009: 0.30p per ordinary share). The Group's net debt at 31 August 2010 was £5.7 million (2009: £4.9 million).

Despite the UK moving out of recession in the latter part of 2009, the trading environment has remained volatile and the Group's results reflect this uncertainty and the testing environment.

The Group enjoyed a period of strong sales in the run up to Christmas 2009, but experienced weak sales during the poor weather in January and immediately after the football World Cup in July. Managing our operations in such an uncertain climate is difficult, particularly where our customers themselves are struggling to predict buying patterns.

The sales growth achieved by the Group in the year has been encouraging given the economic backdrop. This growth has come from across the Group and reflects investments made during 2009 in products, operations and new sales channels. In Asia and Scandinavia, our businesses grew significantly on the back of the expansion of their respective sales operations; our successful entry into the office furniture market in 2010 contributed over £2 million to sales; our automotive sales through the agricultural and commercial vehicle channel also benefited from an improvement in market conditions and reported a year on year sales increase of 17%; and new products such as QTV2 and our new cable range QED Profile helped grow sales in the home retail channel.

Despite the sales growth, our profit margins have come under pressure from a weaker sales mix, additional promotional activity and continuing competitive price pressure. We have responded to these pressures through taking responsible and appropriate action to control our cost base and target lowering the purchase cost of products from our suppliers.

The core fundamentals of strong brands, quality products, unrivalled distribution and excellent customer service all remain true, with our key proprietary brands continuing to dominate their respective niches in the UK.

The Group employs over 300 people in the UK, Ireland, Sweden and Hong Kong. It is thanks to their hard work, dedication and professionalism that the Group continues to be successful in these challenging times. I would like to acknowledge the Board's appreciation of their commitment and effort over the course of the year.

The Group has recently set up a manufacturing facility in northern China in response to a number of opportunities initiated by key customers. Whilst this initiative is in its early stages, the response from our customers has been encouraging.

The economic outlook remains uncertain and challenging in the near term in our core UK markets. Whilst there are opportunities for the Group to grow over the coming year, the Board remains cautious with regard to the short term prospects, with the indications being that the first half of the new financial year will be below the prior year. The Group management have an ongoing operational review looking at all aspects of our business and how it can be streamlined with regard to reducing cost and improving efficiency. The Board has confidence that this review, the sales effort in our core brands and the new manufacturing facility in China will put us in a good position for growth when markets recover.

BOB MORTON

Chairman

23 November 2010

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the year ended 31 August 2010

CONSOLIDATED STATEMENT OF FINANCIAL POSITION

At 31 August 2010

CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY

For the years ended 31 August 2010

CONSOLIDATED STATEMENT OF CASH FLOWS

For the year ended 31 August 2010

1. Accounting Policies

Basis of preparation

The Group's Consolidated Financial Statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively "IFRS") issued by the International Accounting Standards Board as adopted by the European Union ("Adopted IFRS") and with those parts of the Companies Act 2006 applicable to companies preparing their financial statements under IFRS.

While the financial information included in this preliminary announcement has been prepared in accordance with the recognition and measurement criteria of IFRS, this announcement does not itself contain sufficient information to comply with IFRS. The Group expects to publish full financial statements that comply with IFRS in December 2010.

As a result of the application of Amendments to IAS 1 Presentation of Financial Statements: A Revised Presentation the Group has elected to present a single Consolidated Statement of Comprehensive Income. Previously the Group presented an income statement only, with movements in other comprehensive income recognised as part of total recognised income and expense in the Consolidated Statement of Changes in Shareholders' Equity. In addition, certain primary statement titles have changed in order to align with the terms used in IAS 1. The Amendment does not change the recognition or measurement of transactions and balances in the financial statements.

The Group has changed its presentation of segment information in accordance with Operating Segments IFRS 8.

2. Segment Information

The Group operates in the following main business segments:

Armour Auto: The design, manufacture and supply of products for the in-car communications and entertainment market.

Armour Home: The design, manufacture and supply of products into the Hi-Fi, home theatre, home entertainment and office furniture markets.

Central operations: The provision of finance and support services, including future product concepts and Hong Kong based quality control, to the other business segments within the Group and the sale of Armour Auto and Armour Home products to the Asian markets.

These segments are considered on the basis of different products and services. The accounting policies of the operating segments are the same as those described in the accounting policies in note 1.

2. Segment Information (continued)

Geographical information

3. Taxation Expense

The taxation assessed for the year is lower (31 August 2009: Lower) than the standard rate of UK Corporation Tax. The differences are explained below:

4. Earnings per Ordinary Share

Basic earnings per ordinary share are calculated using the weighted average number of ordinary shares in issue during the financial year of 65,056,067 (31 August 2009: 65,056,067). Diluted earnings per ordinary share are calculated with reference to 65,056,067 (31 August 2009: 65,056,067) ordinary shares. The effect of the exercise of options on the weighted average number of ordinary shares in issue is Nil (31 August 2009: Nil).

At 31 August 2010, the Armour Employees' Share Trust held 3,424,000 (31 August 2009: 3,424,000) ordinary shares. The weighted average number of ordinary shares held by the Armour Employees' Share Trust during the year of 3,424,000 (31 August 2009: 3,424,000) are not included in either the weighted average, or diluted weighted average, ordinary shares in issue during the financial year.

Underlying earnings per ordinary share are also shown calculated by reference to earnings before share-based payments. The Directors consider that this gives a useful additional indication of underlying performance. It should be noted that the term "underlying" is not defined under IFRS and may not therefore be comparable with similarly titled profit measures reported by other entities.

5. Dividend

The Board has not recommended a final dividend for the year ended 31st August 2010. The dividend proposed in the financial statements as at 31 August 2009, and approved by shareholders at the Annual General Meeting held on 28 January 2010, was charged to reserves and paid during the year.

6. Net Cash Inflow from Operations

* EBITDA is defined as profit before interest, taxation, depreciation, amortisation and share-based payments.

7. Reconciliation of Net Cash Flow to Movement in Net Debt

Net debt incorporates the Group's borrowings, bank overdrafts and obligations under finance leases, less cash and cash equivalents. A reconciliation of the movement in the net debt from the beginning to the end of the year is shown below:

8. Publication of non-statutory accounts

The financial information set out in this preliminary announcement does not constitute the Group's financial statements for the year ended 31 August 2010 and the year ended 31 August 2009.

The financial statements for the year ended 31 August 2009 were prepared in accordance with Adopted IFRS and have been delivered to the Registrar of Companies. The financial statements for the year ended 31 August 2010 will be delivered to the Registrar of Companies following the Company's Annual General Meeting. The auditors' report on both accounts was unqualified, did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their report and did not contain statements under sections 498(2) or (3) of the Companies Act 2006.

The full audited financial statements of Armour Group plc for the period ended 31 August 2010 are expected to be posted to shareholders no later than 31 December 2010 and will be available to the public at the Company's registered office, Lonsdale House, 7-9 Lonsdale Gardens, Tunbridge Wells Kent, TN1 1NU and available to view on the Company's website at www.armourgroup.uk.com from that date.

9. Annual General Meeting

The Annual General Meeting will be held in early 2011 and shareholders will be notified by the Company in due course.

ABOUT ARMOUR

Armour Group is the United Kingdom's leading consumer electronics group within the home and in-car communications and entertainment markets, committed to designing, manufacturing and distributing leading-edge audio and visual products and solutions.

Armour Group has two principal operating divisions, Armour Home and Armour Auto, and employs over 300 people across seven operating sites in the UK, Scandinavia and Hong Kong.

The Group possesses a strong brand portfolio, including more than 6,000 products and accessories, which is underpinned by innovative product development and investment in proprietary technology.

An unrivalled distribution capability ensures that products are supplied direct to more than 6,000 retail outlets within the UK and to customers in 68 countries worldwide. Armour Group is also a leading supplier of audio and visual technology to a host of non-retail customers including vehicle manufacturers, hotel chains, house builders and custom installers.

The Group's strength is based on 5 fundamentals:

·; Strong recognised brands

·; Quality product portfolio

·; Structured programme of product innovation

·; Unrivalled distribution into the UK's retail electronics market

·; First class customer service