3rd Nov 2020 10:46
(Alliance News) - Chemring Group PLC said Tuesday it expects to report profit for its recently ended financial year to be at the top end of market expectations, following a strong end to the period.
Current market expectations for the Romsey, Hampshire-based defence technology firm's adjusted operating profit is between GBP47 million from GBP53 million. For the year before, adjusted operating profit was GBP44.0 million.
Due to the management of working capital, cash generation and the reduction of intra-period volatility, net debt at October 31 is expected to be GBP48 million compared to GBP75.4 million the same date the prior year.
Chemring has a closing order book for the year at GBP476 million, up from GBP449 million the prior year, giving the company strong visibility on revenue for the current financial year.
Also on Tuesday, the company said its UK subsidiary Chemring Countermeasures UK has won GBP25.8 million in contracts from the UK Ministry of Defence for the development and supply of naval countermeasures for the Royal Navy.
Deliveries under this contract will be made in the current financial year, through to the 2023 financial year.
CCM UK has also been awarded a GBP5.5 million contract from the MoD, for the manufacture of air countermeasures for the UK armed forces. All work under the contracts will be performed at Chemring's facility in Salisbury.
Chemring will publish its annual results on December 15.
Shares in Chemring were up 2.3% at 264.00 pence on Tuesday in London.
By Dayo Laniyan; [email protected]
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