12th Sep 2023 09:46
(Alliance News) - Chemring Group PLC on Tuesday said it remains on track to meet its full-year expectations so long as the US Department of Defense approves countermeasure orders which represent around GBP25 million in revenue.
The Romsey, England-based provider of technology products and services to aerospace, defence and security markets said it is waiting for the DoD to approve certain countermeasure deliveries that have already been manufactured.
Once received, Chemring should meet its adjusted operating profit target for the year ending October 31 of GBP65.2 million to GBP68.2 million, which represents a slight increase from GBP64.0 million in financial 2022. According to Chemring, market consensus stands at GBP66.9 million.
The firm added that as at August 31, its order intake is GBP536 million, up by 47% from GBP365 million a year ago, while its order book increased by 44% to GBP829 million from GBP575 million.
Chief Executive Michael Ord said: "These significant order wins are illustrative of our leading technological offering and the heightened customer demand that we are seeing in response to increased global uncertainty. The growth in order intake across both sectors demonstrates customer confidence in Chemring to develop and supply highly effective solutions, builds our order cover for [financial 2024], and positions the group well for the future."
Shares in Chemring were down by 5.3% at 288.50 pence each in London on Tuesday morning.
By Sabrina Penty, Alliance News reporter
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