Chemring revenue rises but order book slips
Chemring reported a rise in revenue on Tuesday even as the order book slipped, as it reiterated its expectations for the year.
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In a trading update for the four months to 31 August, revenue was up 13.4% from the same period a year ago to £156.7m. This was despite a 2.6% drop in the order book, which stood at £541.8m at the end of August, versus £556.2m at the end of April.
However, the company said recent orders received for delivery in FY18 give it increased confidence in near-term prospects. It also said trading in the period has progressed as planned and current expectations for the year to the end of October are unchanged.
The countermeasures segment saw a particularly strong performance in the period, with total orders of £56.6m received, operational performance improving and the second Philadelphia plant successfully closed. The majority of these orders were from the US government for a range of requirements.
In the sensors business, trials of enhanced Husky Mounted Detection Systems have been successfully completed in theatre and Chemring is currently working with the customer base to define the next phase of fleet refurbishment and upgrade and next generation development requirements.
Across the energetics segment, trading has been "robust" and Chemring Ordnance was awarded a contract for the supply of 40mm ammunition to an international customer, valued at around $30m.
At 0930 BST, the shares were flat at 176.45p.