14th Sep 2015 06:45
LONDON (Alliance News) - Chemring Group PLC on Monday said its expectations for the full year remain unchanged as it said its revenue and order book have both strengthened in the first four months, despite further order delays and cancellations.
The company, 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, said its revenue in the four months to the end of August was GBP119.0 million, up 24% on the GBP96.1 million it made a year earlier.
Its order book at the end of August stood at GBP592.1 million, up 18% from the GBP502.8 million it had at the end of April, boosted by more than GBP100.0 million in ammunition orders from the Middle East.
Chemring said its operational performance has continued to improve this year, with delivery levels meeting expectations in the first four months, while its new advanced countermeasure products have now passed customer acceptance tests, meaning they will now contribute to profit.
Chemring said negotiations on the Husky Mounted Detection System it is manufacturing for a customer in the Middle East are well progressed, but a major order for the supply of a 3D-radar detection equipment into the Middle East, which had been expected in the current financial year, will be delayed to later in 2016.
The company also said a non-standard ammunition order from the US government is expected to be terminated imminently, but it said profits from its Middle East orders and its sensor and electronics products supply deals should offset this issue.
By Sam Unsted; [email protected]; @SamUAtAlliance
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