4th Apr 2016 06:36
LONDON (Alliance News) - Chemring Group PLC on Monday said the implementation of its ammunition contract with a customer in the Middle East has started, with a letter of credit in place and an advance payment now received.
Chemring, which makes countermeasures such as flares and decoys that military aircraft use against missile attack, as well as sensors and electronics used in military vehicles, was forced into a profit warning in October 2015 due to delays on the ammunition contract, which was signed in September last year.
On Monday, however, Chemring said in-house and supply-chain production has started on the contract, with initial revenue to be recognised in the second quarter of its current financial year to the end of October.
Chemring expects the deal to make a significant contribution to its results in the 2016 financial year.
By Sam Unsted; [email protected]; @SamUAtAlliance
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