Armor Designs' eagerly awaited full-year results were released on Thursday afternoon - after a two and a half month wait - but an uncertain outlook after a "challenging" year saw the share price almost halve.

Shares been in the armour material developer resumed trading on the AIM market at 15:00, having been suspended since 30 June after the firm was unable to release its results for the year ending 31 December within the six month deadline.

The group announced that its restricted capital base along with slow economic activity created a challenging environment in 2010, as revenues fell 8.4% from $1.05m to $0.96m. Pre-tax loss widened from $11.7m to $12.49m, while loss per share fell from 44 cents to 46 cents.

Shares dropped 48.75% to 102.5p after the announcement.

While the company attempted to provide funding during the period, through a secondary placement and share subscriptions, other funding has been hard to come by. The group warned that "There are no assurances that the company will be able to continue to raise the sufficient funds needed for working capital until such time as the operations can provide positive cash flow."

The firm said that management is looking at ways to improve its operating results in order to generate additional cash flow.

"Armor Design has a cautious outlook for the short to medium term future as, due to working capital considerations, it is constrained by need to prioritize working capital proceeds to finance purchase orders instead of on sales and marketing programs," said chairman and chief executive officer James St Ville.

BC

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