15th Sep 2020 10:32
(Alliance News) - Chemring Group PLC said Tuesday it anticipates a performance for its current financial year in line with market expectations, despite a challenging environment.
Shares in the Romsey, Hampshire-based defence technology firm, which makes sensors and military countermeasures, were up 4.0% at 261.00 pence on Tuesday in London.
For the year ending October 31, adjusted operating profit is expected to be at the upper end of consensus expectations, which is in the range of GBP47 million to GBP53 million.
For the year before, adjusted operating profit was GBP44.0 million.
Order intake to August 31 was up 4% from the same period a year before, with the order book on the same date being GBP452 million, compared to GBP449 million at the end of October 2019.
Chemring reported a strong performance in the Sensors & Information sector, with strong customer demand in the national security domain, and the meeting of delivery milestones for several of its products.
In addition, the Countermeasure & Energetics division has performed in line with management expectations, with delivery targets across all product lines being met, Chemring said.
In addition, the Tennessee capacity expansion program is progressing as planned, with various major construction milestones being met. Looking ahead, the first incremental revenue from this new facility are expected in the 2022 financial year.
"This has been a busy period in which the resilience of the group has been demonstrated as we continue to make good progress despite the challenges presented by Covid-19. Our expectations for FY20 are towards the upper end of current analyst expectations," said Chief Executive Michael Ord.
"We have good momentum as we near the end of FY20 and move into FY21 and, despite the near-term uncertainty that Covid-19 presents, I remain confident that our leading technologies, deep long-term customer relationships and sole-source or market leading positions mean Chemring's long-term prospects remain strong," Ord added.
By Dayo Laniyan; [email protected]
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