Apologies for longwinded post.



This company does not seem to be on any thread on this board, but I think worth a look.



ALTHOUGH INVOLVED IN ARMS THE PRODUCTS ARE FOR DEFENCE PURPOSES such as decoys

I have bought and sold shares in this company a few times since November 05.

Its rate of growth have be tremendous as has the share price. Approximate rate of growth for last year was 90% p.a.

I paid it another visit after reading the Times article and followed it initially with view to buy as shares bets or shares. The spread is a bit wide and unsuitable for SBs about 0.7%, but as a long term hold may be useful. BUT DO YOUR OWN HOMEWORK.

.
AFX News Feed

CHEMRING 25/4/07

LONDON (Thomson Financial) - Chemring Group PLC said first-half trading was in line with its expectations, adding that full-year prospects are good as its order book continues to grow. The military manufacturer said the first month performance of Italian munitions firm Simmel Difesa SpA, which it acquired on March 30, has been encouraging. Chemring added Simmel's acquisition for 49 mln stg is expected to be accretive to its earnings in the first full financial year post-completion. First-half results are expected to be announced on June 26, Chemring said. TFN.newsdesk@thomson.com ukn/ic COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.

Friday, 30/03/07, 16:01


LONDON (AFX) - Military manufacturer Chemring has acquired the entire issued shares of Italian munitions specialist Simmel Difesa SpA for 77 mln eur, as part of its ongoing strategy of expanding its presence in the munition and explosive ordnance disposal markets.
The acquisition was funded by the issue of 373,551 new Chemring shares, and a cash payment of 67 mln eur funded by new bank facilities. newsdesk@afxnews.com bsd/nes COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited

22/03/07, 14:58
LONDON (AFX) - Military manufacturer Chemring has acquired the entire issued shares of Italian munitions specialist Simmel Difesa SpA for 77 mln eur, as part of its ongoing strategy of expanding its presence in the munition and explosive ordnance disposal markets.
The acquisition was funded by the issue of 373,551 new Chemring shares, and a cash payment of 67 mln eur funded by new bank facilities. newsdesk@afxnews.com bsd/nes COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited



From The Times
February 16, 2007
US defence giants hunt British takeover targets
Boeing and Lockheed Martin are eyeing British defence companies worth more than 5 billion
David Robertson, Business Correspondent
Boeing and Lockheed Martin are eyeing British defence companies worth more than 5 billion in an attempt to win orders from the Ministry of Defence, The Times has learnt.
The American defence giants are understood already to have independently approached, and been rebuffed by, Ultra Electronics, the 800 million battlefield-IT specialist.
They are also thought to be weighing potential bids for Cobham, Meggitt and Chemring.
The interest being shown by the Americans has put British defence companies on a collision course with the Government over the industrys future.
BACKGROUND
Airbus weighs up factory spin-offs in restructuring
Cargo carrier struggles to stay airborne
Industrialists, including Sir John Rose, chief executive of Rolls-Royce, and Allan Cook, chief executive of Cobham, are concerned that UK plc is being sold off to foreigners.
The crisis of ownership is being particularly felt in the defence sector after the introduction last year of the Governments Defence Industrial Strategy (DIS), which sets out the future for the military-in-dustrial complex in Britain.
Lord Drayson, the Defence Procurement Minister, believes that who owns a defence contractor is less important than where it is based. The DIS states that, as long as the scientists, engineers and technicians that build and maintain Britains military infrastructure remain in the country, it matters less where their employer is from.
American companies wanting to win Ministry of Defence (MoD) orders are therefore having do so through a UK subsidiary.
Both Boeing and Lockheed Martin have set up UK operations and are expanding these organically but they are also looking for acquisitions.
Lockheed Martin, which had operating profits of $4 billion (2 billion) last year, said: We are a growing company and an ambitious company and we will look to move in the direction of acquisitions if it is appropriate to do so.
Boeing, which had profits of $3 billion last year, said: We are mindful of the DIS and the need to keep intellectual property in the UK but we need the capability to do so. We are looking at the option of acquisitions. Last week Sir John Rose gave warning that UK plc was under threat from foreign companies using the country as an aircraft carrier and raiding profits without investing in the future.
Allan Cook, chief executive of Cobham, told The Timesyesterday: This is about national defence and it does matter where the shareholders are.
We have to maintain core skills in aerospace and defence.
The American invasion has already begun with GEs acquisition of Smiths Industries aerospace division last month. Analysts have been speculating for some time that Cobham, Meggitt, Ultra and Chemring could be the next targets.
None of these companies was willing to comment.

One doesn't often see a RNS like this.

The amount "gifted" is small and unusual.



FOR IMMEDIATE RELEASE 25 APRIL 2007

DIRECTOR'S SHAREHOLDING

In accordance with Chapter 5 of the Financial Service Authority's Disclosure
and Transparency Rules, Chemring Group PLC (the "Company") has today been
notified that Paul Adrian Rayner, a director of the Company, has today gifted a
total of 100 5p Ordinary Shares in the Company (0.0003% of the Company's issued
share capital) to his four children (each therefore receiving 25 5p Ordinary
Shares) for nil consideration. As a result of the transaction, Mr Rayner and
his connected persons are collectively interested in 21,100 5p Ordinary Shares
in the Company, representing 0.065% of the issued share capital.

Enquiries:


But would nice is when the company confirms approach!

Share price has moved upwards as expected and if continues should hit 2280+, from present 2066p, over next 3/52, if it behaves in as is it has previously. ie. about 10%. It would be nice to see a slight surge in volume though. But if interested putting a stop of about 1980p might be sensible.

The spread reduces its possibilities for Shares bets etc. (for me) unless thought of in longer terms.

This is beginning to move as expected, not sure whether there are any rumours going round pushing price up.

This share is moving well, but I sold my share bets to-day. I think will continue to move well and may buy again as shares.

Anyone considering buying share bets should consider the wandering spread and liquidity.
This is the reasoning for me taking a profit and moving out of Share bets.

See the CMC thread on traders room.

FINAL RESULTS (Chemring)





TIDMCHG

RNS Number : 9076L
Chemring Group PLC
20 January 2009

?
+---------------------------------------+---------------------------------------+
| FOR IMMEDIATE RELEASE | 20 January 2009 |
+---------------------------------------+---------------------------------------+


CHEMRING GROUP PLC


PRELIMINARY RESULTS
FOR THE YEAR ENDED 31 OCTOBER 2008



Revenue from continuing operations up 39% to GBP354.2 million (2007: GBP254.7
million)
Record current order book of GBP585 million, up 43% since the end of October
2008; year end order book up 38% at GBP409 million (2007: GBP297 million)
Record operating cash flow up 38% to GBP83.7 million (2007: GBP60.6 million),
representing 99% conversion from underlying operating profit* of GBP84.9 million
(2007: GBP61.2 million)
Underlying profit before tax from continuing operations* up 39% to GBP74.2
million (2007: GBP53.2 million)
Profit before tax from continuing operations up 16% to GBP57.7 million (2007:
GBP49.8 million)
Underlying earnings per share from continuing operations* up 43% at 160p
(2007: 112p)
Basic earnings per share from continuing operations up 17% at 123p (2007:
105p)
Dividend per ordinary share up 40% at 35p (2007: 25p)


Divisional Highlights
Both Energetics and Countermeasures performed strongly and achieved record years
Energetics
Year end order book of GBP281 million, up 58% on 2007
Revenue of GBP197 million, up 54% on 2007
Simmel achieved an excellent second half performance with record sales and
profits
Strong contribution from acquisitions made in 2008
Divisional operating profits of GBP46 million in line with those of
Countermeasures
Countermeasures
Revenue of GBP157 million, up 25% on 2007
Chemring Countermeasures and Kilgore achieved record sales and profits
Alloy Surfaces achieved record production volumes of decoys
A$160 million contract for Chemring Australia


Ken Scobie, Chemring Group Chairman, commented:


"Once again I have the pleasure to announce another year of excellent
performance, with a 39% increase in underlying profit before tax* to GBP74.2
million and a 43% increase in underlying earnings per share* to 160p.


We enter 2009 with an excellent order book, an Energetics division growing
rapidly but still in its youth, and several newly-acquired businesses determined
to show the Group what they can achieve. The Countermeasures division will
continue to produce solid earnings and cash flow.


As a leading defence business, the issues associated with the current military
operations around the world make many judgments difficult but looking to the
future of the Group, these international tensions do not make the world look a
safer place. In rapidly changing economic circumstances there are many
imponderables which could affect the outcome for the next year. However, once
again I believe we will experience another year of above average growth, with
all-round solid financial performance."


* Before goodwill adjustment arising from recognition of tax losses, intangible
amortisation arising from business combinations and loss on fair value movements
on derivatives of GBP16.5 million (2007: GBP3.4 million)




For further information:


+--------------------+------------------------------------+-----------------+
| Ken Scobie | Chairman, Chemring Group PLC | 0207 930 0777 |
+--------------------+------------------------------------+-----------------+
| Dr David Price | Chief Executive, Chemring Group | 0207 930 0777 |
| | PLC | |
+--------------------+------------------------------------+-----------------+
| Paul Rayner | Finance Director, Chemring Group | 0207 930 0777 |
| | PLC | |
+--------------------+------------------------------------+-----------------+
| Rupert Pittman | Cardew Group | 0207 930 0777 |
+--------------------+------------------------------------+-----------------+




Results
Total revenue was GBP354.2 million (2007: GBP254.7 million), an increase of 39%.
Total underlying operating profit* was GBP84.9 million (2007: GBP61.2 million),
an increase of 39%.


Revenue, excluding acquisitions, increased 31% to GBP334.6 million (2007:
GBP254.7 million). Underlying operating profit*, excluding acquisitions,
increased 30% to GBP79.6 million (2007: GBP61.2 million). Net underlying
operating margins*, excluding acquisitions, were 24% (2007: 24%).


Revenue from businesses acquired in the year was GBP19.6 million and GBP5.3
million of underlying operating profit* was generated at a margin of 27%.


An analysis of total revenue and underlying operating profit* by business
segment is set out below:


+-----------------+----------------+------------+-----------+----------+------------+----------+
| Segment | 2008 | 2007
|
+
+-----------------------------------------+----------------------------------+
| | Revenue | Underlying | Margin | Revenue | Underlying | Margin
|
| | GBPm | operating | | GBPm | operating |
|
| | | profit* | | | profit* |
|
| | | GBPm | | | GBPm |
|
+-----------------+----------------+------------+-----------+----------+------------+----------+
| | | | | | |
|
+-----------------+----------------+------------+-----------+----------+------------+----------+
| Energetics | 196.7 | 45.7 | 23% | 128.2 | 27.9 | 22%
|
+-----------------+----------------+------------+-----------+----------+------------+----------+
| Countermeasures | 157.5 | 45.5 | 29% | 126.5 | 38.6 | 30%
|
+-----------------+----------------+------------+-----------+----------+------------+----------+
| Share-based | - | (1.7) | | - | (2.4) |
|
| payments | | | | | |
|
+-----------------+----------------+------------+-----------+----------+------------+----------+
| Unallocated | | (4.6) | | | (2.9) |
|
| head | - | | | - | |
|
| office costs | | | | | |
|
+-----------------+----------------+------------+-----------+----------+------------+----------+
| Total | 354.2 | 84.9 | 24% | 254.7 | 61.2 | 24%
|
+-----------------+----------------+------------+-----------+----------+------------+----------+


The revenue of the Energetics division grew 54%, and the operating profit grew
64%. The revenue of the Countermeasures division grew 25% and the operating
profit grew 18%.


Interest income in the year was GBP1.8 million (2007: GBP0.6 million). The
interest charge for the year was GBP12.6 million (2007: GBP8.7 million).
Included within interest is GBP0.7 million (2007: GBP0.6 million) for retirement
benefit obligations. Net interest was covered 7.9 times (2007: 7.6 times) by
underlying operating profit*.


Underlying profit before tax* was GBP74.2 million (2007: GBP53.2 million), an
increase of 39%.


Tax on the underlying profit before tax* was GBP20.7 million (2007: GBP17.1
million), representing a rate of 28% (2007: 32%).


Underlying profit after tax* on continuing operations was GBP53.5 million (2007:
GBP36.1 million), an increase of 48%.

this is a terrific company though i have not followed it for a while.

Excellent Co, good divi payable towards end of march, with strong order book.
Not immune to a downturn, but has suffered much less than other large companies & recovering steadily.

Broken through the 200 DMA for the first time in 4 months. Would expect to see some profit taking & a slide back, but looking a very good investment so far.
I believe they have been talking to institutional investors today, trying to promote the company, so hopefully some solid investors on the books soon.

Will be interesting to see where the sp goes now. Have taken profit, but need a pull back now as a little bit too expensive. Back to the 200 DMA would be ideal.

These are down along with some other Aerospace today, anyone got any news out there why?

markets are soggy

great figures followed by big jump in sp ..... would be pretty tempted were it not for the converging dmas lurking only a smidge higher

Goes ex-divi on the 25th march '09.

Interims due next week.
The results and outlook should be very good.

Very impressive interims:

Financial Highlights

Revenue from continuing operations up 55% to 233.5 million (2008: 150.2 million)

Record order book of 603 million, up 42% since June 2008

Underlying operating profit from continuing operations* up 64% to 46.1 million (2008: 28.2 million)

Underlying profit before tax from continuing operations* up 67% to 39.5 million (2008: 23.6 million)

Underlying earnings per share* up 56% at 81p (2008: 52p)

Profit before tax up 44% to 29.9 million (2008: 20.7 million)

Basic earnings per share up 36% at 61p (2008: 45p)

Interim dividend per ordinary share up 40% at 14p (2008: 10p)

this really is an excellent company, though it is a bit illiquid.
looks like sp is breaking upwards yet again, and this in a soggy market

results next week !

CHG goes ex-divi next wed, 17th March '10, 36p.

this is a very good company indeed although from a trading point of view it's a bit illiquid and certainly a bit volatile - but then it is a 30+ stock

has it gone ex divi already? - i suspect so, but if not, perhaps worth buying in the morning after a 40/50p drop today and with divi to come next week

=======

just checked - it goes xd of 35p nett next week (17th)

Down 61p at the mo (has been a lot lower today) on ex.divi day (36p). on 3 times av.volume so far.

Is it the market not liking the Interim Man. Statement? or just a bit of profit taking?

Why did I ever get out of this stock?

Wait a week or two and it will probably sing the Marseillaise.

a very interesting company that is truly well run and lots of other good things too - except perhaps its sector and weight ..... shares mag has always liked this stock, and they are certainly not alone, but apart from the cost, i do find it of some concern that sp has struggled to break back north of the 200 dma (black)

Goes ex-divi 13th July '11 (4p)

StockMarketWire.com
Chemring Group has completed its acquisition of the detection systems operations and certain related assets of General Dynamics Armament and Technical Products, a subsidiary of General Dynamics Corporation.

The acquisition was announced on 20 April 2011.

The business, which will now operate as Chemring Detection Systems, is based in Charlotte, North Carolina.

StockMarketWire.com
Chemring Group's trading in the three months to the end of July remained strong with revenues 33% up on last year at 164m.

The group said that without the unfavourable impact of the dollar exchange rate, revenue growth for the three month period on a constant basis would have been 37%.

Revenue in the nine month period to the end of July 2011 was 494m, 30% higher than a year ago, and 34% higher on a constant dollar exchange rate.

With Roke, Mecar and Chemring Detection Systems all fully contributing to the final quarter for the first time, the board is confident that the outlook for the financial year to the end of October remains in line with its previous expectations.

NIITEK AWARDED $49.5 MILLION CONTRACT
Chemring Group PLC is pleased to announce that its US subsidiary, Non-Intrusive Inspection Technology, Inc. ("NIITEK"), has been awarded a $49.5 million contract from the US Army to supply spare parts for the Husky Mine Detection System ("HMDS"), in support of US peacekeeping operations around the world. Deliveries under the contract will be made over the period to March 2012.

Dr David Price, Chief Executive of Chemring, commented: "This contract will permit NIITEK to continue to provide critical parts for over 200 systems that the US Army and US Marine Corp have purchased to date. HMDS has proven to be a vital component of the US military's mission to locate buried explosive hazards. The HMDS continues to contribute to the safety of US and coalition forces, and this contract will ensure operational availability of these critical systems."

StockMarketWire.com
Defence contractor Chemring Group said it performed strongly in the last quarter of the financial year with revenue in the period increasing substantially to 252m, up 16% from 218m in the same period last year.

Organic growth from continuing businesses was 11% in the period, which remains encouraging in the current uncertain market conditions. Trading in the period for Counter-IED and Munitions business segments continues to be very strong, with revenues up by 37% and 61% respectively compared with last year.

In line with group strategy to diversify the geographic customer profile, over half of the Munitions revenue is now generated from non-NATO markets. Operating margins in the period have remained firm although pricing pressures continue in our Counter-IED markets.

However, as a result of unexpected delays in customer approval of product lot acceptance, 37m of revenue, associated with finished product manufactured in September and October, slipped out of the last week of October into November. This revenue shortfall was principally in the Counter-IED and Countermeasures business segments, with about one third associated with a delay in the agreement with the US Army procurement organisation on the final terms for delivery of Husky Mounted Detection System (HMDS) ground penetrating radars under the US contract "definitization" process. This has now been resolved.

The total revenue generated in the full year, subject to final audit, was 745m, 25% higher than the previous year, but 5% lower than the Board's expectations. The gross margin associated with this delayed revenue is approximately 14m and will take the Group operating profit below market expectations, albeit there will still be positive growth on last year's figure.

Expectations for the 2012 financial year remain unchanged.

The Group's order book at the end of the year was 878m, which is 9% higher than at the end of 2010, but 12% lower than reported in the third quarter interim management statement. This reflects widespread delays in the placement of contracts because of the continued uncertainty in the US and European defence markets, as well as the impact of the timing of religious festivals with our Middle East customers.

As anticipated, there was a significant operating cash inflow of 86m the quarter. As a result, net debt fell by 15% to approximately 260m at the year end, compared with 307m at the end of 2010.

The US has seen a repeat of the continuing resolution process which adversely affected order placement last year. Furthermore, the Budget Control Act was enacted in August 2011, as a measure to cap overall public sector spending over the next ten years. These events have significantly disrupted the usual procurement process and are likely to result in the delay in the placement of orders, driving a second half bias in 2012 comparable to that in the 2011 financial year.

The European market continues to be dominated by government deficit reduction programmes, which are expected to generate further short-term uncertainty in European defence budgets and disrupt current procurement plans. Over the next twelve months, we expect this uncertainty to translate into weaker defence spending and delays to the traditional timing of the placement of orders.

Non-NATO markets have remained buoyant with strong GDP growth and sustained high oil prices. In line with strategy, Chemring continues to grow its presence within the Middle East and Asia as it moves towards the medium term target of 40% of revenues coming from non-NATO markets.

Whilst the first quarter of 2012 will benefit from the revenues that have slipped out of October, this is balanced by a backdrop of greater market uncertainty and potential order delays. Consequently, the Board's expectations for the 2012 financial year remain unchanged. Looking further forward, the Board believes that our strong market positions, diverse product portfolio and strategy for expansion in non-NATO markets will continue to generate growth into the medium term.

Preliminary results for the year ended 31st October 2011 are expected to be announced on 24th January 2012.

figures initially look good until you read further that they are below expectations - hence market has taken no prisoners


by the way, i see that Shares Mag made one of its regular spiffing recommendations on thursday - BUY at 517.5!!

Chemring Group PLC is pleased to announce that its Italian subsidiary, Simmel Difesa S.p.A.("Simmel"), has been awarded further contracts to the value of €38 million for the delivery of 81mm pyrotechnic illumination mortar rounds. This award amends and extends existing contracts that were awarded in 2010, which amounted to €24.5 million, and raises the total replacement contracts to €62.5 million. Deliveries under the contracts will be made over the period from 2012 to 2014.

Dr David Price, Chief Executive of Chemring, commented: "I am delighted with today's announcement. It confirms Chemring's leading role within the pyrotechnics industry and the sustained requirement for these products despite current defence cuts."

Simmel, based in Colleferro, Italy, is a key supplier of energetics sub-systems such as fuzes, safety and arming systems, warheads and modular charge systems for major ammunition prime contractors around the world. The company is also a specialist manufacturer of medium and large calibre ammunition, rockets and illumination mortar rounds for a substantial number of NATO and non-NATO armed forces. Simmel has a second site at Anagni, Italy, where it has a specialist facility for the disposal of ordnance at the end of its operational life.

StockMarketWire.com
Military tecnology specialist Chemring reported revenue up 25% to £745.3m in the year to end-October (2010: £597.1m), with PBT of £90.8m (2010: £89.1m).

The group said it saw organic revenue growth of 9% in a difficult market.

Non-NATO revenues were up 81% to 29% of total Group revenue (2010: 20%).

The year end order book was up 9% at £878.3m (2010: £803.3m), with the order book today at £980m, up 9% on January 2011.

Underlying profit before tax was up 6% to £125.6m (2010: £118.7m).

Underlying earnings per share were up 5% at 52.1p (2010: 49.8p).

Profit before tax was £90.8m (2010: £89.1m).

Basic earnings per share were 39.8p (2010: 37.8p).

Dividend per ordinary share was up 25% at 14.8p (2010: 11.8p).

Net debt at year end was £262.7m (2010: £307.5m).

In Counter-IED, NIITEK increased revenue by 24% to £126.9m, with 77 HMDS units delivered to the US Army.

Chemring Ordnance was awarded a multi-year contract, worth up to $150m, to supply the Mk7 Anti-Personnel Obstacle Breaching System (APOBS) to the US Army and US Marine Corps.

Chemring Detection Systems acquired in July and performed in line with expectations.

In Countermeasures, expendable countermeasures revenues declined as expected. Kilgore restarted production and revenue reached new record.

In Pyrotechnics there were reduced revenues for illuminating products in both UK and US markets. Margin was maintained in line with last year.

In Munitions, revenue more than doubled to £237m. Demand for 90mm and 40mm grenade ammunition almost tripled and revenue from naval ammunition grew by 122%.

Good news but sp crashing...

Not at all hunky-dory...


Military equipment maker Chemring said it expects defence markets to be challenging in 2012 after it posted a 6% rise in full-year profit, helped by growth in sales to non-NATO markets.

"During the last year, many governments have struggled with increasing deficits and lower economic growth ...this has affected defence procurement, leading to volume reductions and delays," Chemring chairman Peter Hickson said today.

"The continuing problems of the Eurozone and the impact of possible sequestration in the United States indicate that our traditional markets will not be any easier this year."

The US, easily the world's largest defence spender, has capped its military budget at last year's levels for 2012, significantly less than its defence department requested. It has also introduced a budget control act to curb public sector spending over the next 10 years.

Chemring, which raised final dividend by a quarter to 14.8 pence per share, also said it would bring down its dividend cover to three times earnings from around four times over the next year.

Cazenove note:
"FY2011 in line with November downgrades, but a more cautious outlook on growth and margins leads us to downgrade FY12e EPS by -15% to 54.3p. The DPS increase (+25% to 14.8p implying a 3.3% yield) and prospect of a return of capital post the AGM highlight a change of strategy, but the outlook for CHG remains challenging, in our view. FY2011 broadly in line, 23% tax bolsters EPS and DPS +25% - FY2011 numbers were in line with revised guidance with sales of £745m (+9% yoy). EBITA of £141.8m (3% below JPMe) was made up for by a 23% tax rate (which is sustainable) with EPS of 52.1p (JPMe 51.7p) in line. DPS +25% yoy to 14.8p (12.2p) was comfortably ahead of expectations.
Outlook challenging, strategy changing with prospect capital return post AGM – the outlook for defence markets has continued to deteriorate. We now expect mid single digit sales growth and flat margins in 12e, despite the Jan 11 order book rising to £980m (vs £878m at y/e). This has also driven a change in strategy with the DPS payout ratio increased and DPS cover expected to be 3x going forward with the company considering returning surplus capital to shareholders while maintaining balance sheet strength.
2012E and 2013E EPS downgrades of 15% and 17% to 54.3p & 58.4p, respectively. We push sales and margin downgrades through all divisions (ex Munitions) and leave FY12e margins flat at 19%. We increase our FY12e DPS to 18.1p (3x EPS cover) which at 449p implies a 4% yield.
DCF derived price target falls to 512p – Chemring is trading on a 2012E PER of 8.3x and EV/EBITA of 9.1x this leave it broadly in line with its defence peers on PER but at a rating premium on EV/EBITA."

love the company; hate the sector

StockMarketWire.com
Chemring has a record order book of £997m, 6% higher than a year ago.

It says this reflects the good growth in orders for pyrotechnics and munitions, which has been offset by delays in order intake from the US.

As expected, the order book at NIITEK is currently £50m lower than last year, due to the extended timescales for the negotiation of the multi-year contract for spares and support for the existing Husky Mounted Detection System fleet.

Revenue during the first three months was £137m (2011: £136m), in line with the board's expectations.

Strong growth was generated in the group's munitions and countermeasure businesses, offset by reductions in its counter-IED and pyrotechnics divisions.

The group says 72% of the expected revenue for 2012 is now covered by firm orders.

Down 15p so far, sell on the news.

CHEMRING COUNTERMEASURES AWARDED £21 MILLION CONTRACT

Chemring Group PLC is pleased to announce that its UK subsidiary, Chemring Countermeasures Ltd ("CCM"), has been awarded a five year long term partnering agreement worth £21 million, with options for a further £38 million over the contract period. The contract is for a range of different infra-red ("IR") and radar frequency ("RF") types of airborne expendable decoy flares for the UK MoD, that are used by the Royal Air Force, Royal Navy and British Army to protect a number of fixed and rotary wing aircraft from the threat of IR and RF guided missiles. Deliveries of these flares are scheduled to begin in May 2012 and continue through to March 2017. All work will be performed at the CCM plant in Salisbury, Wiltshire.

StockMarketWire.com
Chemring Group has confirmed that all five orders identified as key to 2012 have been received and the board's full year expectations remain unchanged.

Interim results for the six months to the end of April are expected to be announced on 19th June 2012.

StockMarketWire.com
Chemring Group has agreed the sale of its marine interests to Drew Marine for £32m, payable in cash.

Completion, which is conditional upon regulatory approvals and subject to a working capital adjustment, is expected by the end of July.

The proceeds after costs will be used by the group to reduce net debt, initiate a share buy-back, and to fund existing pension liabilities of around £2m.

Chemring Marine is the world's leading supplier of marine pyrotechnic distress signals to the commercial and leisure marine markets, but is no longer considered to be core to Chemring and its wider international defence strategy.

Six year low!

http://www.moneyam.com/action/news/showArticle?id=4390931

INTERIM RESULTS FOR THE HALF YEAR TO 30 APRIL 2012

HIGHLIGHTS
· Current order book up 14% at record high of £1 billion

· NIITEK finally awarded multi-year support contract at period end, significantly increasing the Group's second half weighting

· Revenue from continuing operations1 up 4% to £333.3 million (2011: £319.3 million)

· Disposal of Chemring Marine business announced - results excluded from all figures relating to continuing operations

· Non-NATO revenue up 31% to £101.6 million (2011: £77.5 million)

· 30% of revenue from non-NATO customers (2011: 24%)

· Underlying profit before tax1,2 down 21% to £39.2 million, principally due to delays in US defence orders, particularly the NIITEK contract

· Underlying earnings per share from continuing operations1,2 16.0p (2011: 20.9p)

· Interim dividend per ordinary share up 33% at 5.3p (2011: 4.0p)

Dr David Price, Chemring Group Chief Executive, commented:
"As expected, the Group's results for the first six months of the year were affected by the Continuing Resolution in the US and the US Government's delay in awarding the NIITEK $579 million multi-year support contract until the last day of the period.

Significantly, our order book grew by 14% to a new record of £1 billion, and remains the best leading indicator of our future growth. The order book at 30 April provides 94% cover for full year revenue.

The second half has started well, with trading in May up over 50% year-on-year. The Board is confident that the Group will deliver a strong second half trading performance, with increased operating margins that will enable us to meet our full year expectations."

How the mighty have fallen.

Finished down over 9%. But someones got faith in them at 293p http://www.moneyam.com/action/news/showArticle?id=4391294

profiled in "shares" mag today 5.5% yield well covered, good order book, possible "punch up" with Iran on the cards perhaps under rated.

sp up 7% so far today heading for 200dma around 370p.

FOR IMMEDIATE RELEASE

17 August 2012

The Board of Chemring Group PLC ("Chemring") notes the rise in Chemring's share price today.

Chemring confirms that it received a highly preliminary expression of interest from The Carlyle Group in relation to a possible offer for the Company.

[The Carlyle Group is an American-based global asset management firm, specializing in private equity, based in Washington, D.C.]

he he lovely news. great end to week great day for a change. both this and SKS came off the Bearish Charts on chart attack thread.

looking at blinx now and perhaphs clf.

(Reuters) - Chemring Group Plc (CHG.L) said it had received a preliminary expression of interest from private equity firm Carlyle Group (CG.O), sending the military equipment maker's shares up 26 percent.

The company, which has a market value of 605.8 million pounds, declined to comment on the status of the approach and whether it was considering it.

Carlyle has until 14th September to either make a firm bid for Chemring or pull out, as per the takeover code.

Chemring and its peers are facing the challenge of coping with lower defence spending in the United States and Europe as governments tighten their belts in an effort to rein in budget deficits.

The threat of a second round of cuts to U.S. defence spending under a process known as sequestration has further weighed on investor sentiment, prompting speculation that the company is an attractive buyout candidate.

However, the company, which makes flares, equipment to detect improvised explosive devices and the mechanisms used in ejection seats, said in June that it was on track to meet its full-year expectations and its order book was up 14 percent at 1 billion pounds since October 2011.

Chemring shares have fallen 21 percent so far this year leading to speculation last month that larger American rival General Dynamics (GD.N) may have been readying a bid."

UPGRADE

450p SP target......

20 Aug Chemring Group PLC CHG Oriel Securities Add 389.35 414.70 375.00 450.00 Upgrades

Citigroup note:
"How much is a bid worth? Following their rise on Friday the shares have closed the gap to the sector and are now trading on 8.3x and 9.1x our FY12 and FY13 EPS estimates with a FCF yield of 8%. This would suggest to our mind that upside from here is limited with the EV of the business now £1.07bn. If we assume leverage on PE deals to be in the range 4-5x EBITDA, this would imply (using 2012 EBITDA) that Carlyle would need to put in 34% to 43% of equity at the mid point of this range (4.5x) for a bid between 415-500p.
What is in it for Carlyle or another bidder? We continue to believe that elements of Chemring's business offer good upside on a medium term basis. Its market leading countermeasures business should benefit from new air platforms coming online. Further while lower margin, its munitions business offers good exposure to non-NATO markets and its Counter-IED business could see further HMDS orders on a 2-3 year view. All this would suggest not only upside on a medium term basis but could help a potential bidder crystallize value by breaking up the group, our sum of the parts valuation would imply a valuation range of 427-499p
Valuation in line with sector: The shares are now trading on 8.1x 2012 EPS and 9.1x our bottom of the range 2013 EPS. Further, the company faces challenges in recruiting a new CFO, delivering on 2012 EPS and cash numbers and navigating the uncertainty around the US defence outlook. Following Friday’s announcement we have reduced our WACC to 10.3% (11.5%), implying a new TP of 430p (previously 360p) but give n the limited upside, we downgrade our rating to Neutral."

UBS note:
"We would advocate a degree of caution as the release states “highly preliminary” and that CHG was required to issue a statement because of the strong share price movement on Friday (+10% before the release), implying a reasonable chance that the bid does not materialise.
We added Chemring to our UBS M&A watchlist on July 3rd as we thought that the sharp drop in CHG's share price YTD; its depressed valuation relative to peers that we believed did not reflect the intrinsic value of its businesses; the outlook for an improvement in cashflow (lower Capex and growth) and the concentrated list of shareholders had made Chemring an attractive takeover target for a large defence prime or a PE backed LBO/MBO that could delist now at an attractive valuation and refloat the company with lower leverage and higher certainty in a few years time."

Well done if you bought into these recently.

Goldfinger, you are wrong again...


Military equipment maker, Chemring, has seen its shares plunged more than 10% on rumours that a possible takeover by private equity firm Carlyle Group could be about to collapse.

On Friday the share price of the company, which makes flares and equipment for detecting Improvised Explosive Devices, revealed it had been approached after speculation began circling and the share price started to move.

But the company was keen to stress the approach was a "highly preliminary expression of interest" in the hope not to scare off the potential investors.

That didn't stop investors piling in, sending the share price up 26%.

Now that the dust has settled a little and cool heads are prevailing, the sensible investors are beginning to sell and the shareprice now sits down 43.6p, 10.5%, at 371.1p.

Carlyle now has until September 14 to either make a firm offer or walk away.

Recovering from this mornings drop.

SP upgrade by Citigroup.....

* Citigroup cuts Chemring to neutral from buy
* Citigroup raises Chemring price target to 430p from 360p


by SparksTrader • about 30 mins ago Website: www.lse.co.uk
* Espirito Santo raises Anite Plc fair value to 160p from 137p; rating buy
* RBC cuts Balfour Beatty PLC price target to 325p from 350p; rating outperform
* Citigroup cuts Chemring to neutral from buy
* Citigroup raises Chemring price target to 430p from 360p
* JP Morgan raises Diageo price target to 1560p from 1376p; rating underweight
* Citigroup cuts Lonmin PLC price target to 653p from 760p; rating neutral
* Berenberg cuts Travis Perkins PLC to sell from hold
* Citigroup raises Reed Elsevier PLC target price to 670p from 605p; rating buy
* Barclays raises Amlin PLC price target to 492p from 467p;rating overweight
* Jefferies raises Electrocomponents price target to 240p from 190p; rating hold
* Canaccord genuity cuts African Barrick Gold Plc price target to 380p from 440p; rating hold
* Investec raises James Fisher price target to 725p from 685p ; rating buy

Today's update is poor... falling again

INTERIM MANAGEMENT STATEMENT

Current Trading
Trading for the three month period to the end of July 2012 saw steady growth, with revenue in the period up 4% to £165 million from £158 million in the same period last year. Revenue from continuing operations in the nine month period to the end of July 2012 was, therefore, £498 million, 4% higher than in the same period last year. However, we have recently discovered errors within a new Enterprise Resource Planning (ERP) system being installed at our subsidiary in Florida. In addition, we have been informed of several months of delay in the start of production of the MK7 MOD 2 Anti-Personnel Obstacle Breaching System ("APOBS"). Largely as a result of these developments, we have reduced our current expectations for full year operating profit by approximately £15 million, equivalent to about 6 pence of earnings per share.

The Group's order book at the end of July was £910 million, which is 9% lower than at this time last year. This reflects a lower than expected order intake in the period, with orders delayed by the growing length of the export license approval cycle in many European countries and the impact of the early start to Ramadan on Middle East customers. The outlook for the US defence market continues to be uncertain with the majority of our customers indicating that they have no visibility of funding in the next financial year until the funding for the FY2013 defence budget is eventually resolved.

http://www.moneyam.com/action/news/showArticle?id=4433378

Defence contractor Chemring has issued a profits warning, saying a computer glitch and production delays are likely to wipe 15m sterling off full year earnings as it consider a takeover offer from private equity giant Carlyle.

A so-called Enterprise Resource Planning (ERP) system is one of the culprits, with errors having recently been discovered during an installation at Chemring’s Florida subsidiary.

The group has also been hit by “several months” of delays in the production of an anti-personnel obstacle breaching system.

Chemring, which specialises in countermeasures against things like improvised explosive devices (IED), also reports its order book, at £910m, is 9% lower than at the same point of 2011. The company blames the length of time it has taken for European countries to sign on the dotted line and the early start to Ramadan in the Middle East.

In common with most other defence companies, Chemring is also suffering from a failure of American politicians to agree the defence budget for 2013.

There is a high chance private equity giant Carlyle may withdraw from the takeover.

Chemring, the military equipment group which is being stalked by private equity group Carlyle, has slumped nearly 13% after it warned full year profits would miss expectations.

After the initial excitement of the Carlyle approach, the company's shares fell back last week on doubts about whether a deal would actually emerge. There were also fears that cutbacks in defence spending could adversely affect the business.

Now Chemring has admitted that it expected a delay of several months in the start of production of an obstacle breaching system. On top of that it has discovered errors in a resource planning system being installed at its Florida subsidiary. So full year profits will now be around £15m lower than expected. The news has sent its shares 47.7p lower to 322.8p. Carlyle has until 14 September to decide whether to make an offer, but the amount it would need to cough up is falling by the day. Guy Brown at Oriel Securities said:

This warning highlights the seriousness of the issues within Chemring [which] is facing a potential cash crisis after receiving over £50m in excess placing for an acquisition never completed in 2011. While we saw the Carlyle approach as a potential positive catalyst for change within the group, the issues are larger and worse than we expected. Hence we are placing our recommendation under review until we have greater insight into the issues within the company

Already up on my re-purchase yesterday. Speculative but which company in take over mode isnt.

Interesting to note 3 or 4 brokers yesterday re-iterated their previous positions on the stock.

ADD NOTE out from these guys. Sure they were sceptical last week......

29 Aug Chemring Group PLC CHG Oriel Securities Add 330.90 324.00 450.00 440.00 Retains

Four days to go to 'Put up or shut up' from Carlyle. Ominously quite.

Nothing, so presumably, by default, CHG is no longer under bid rules?

Extension of deadline under Rule 2.6(c) of the Takeover Code

The Board of Chemring Group PLC ("Chemring" or the "Company") announced on 17 August 2012 that it had received a highly preliminary expression of interest from The Carlyle Group in relation to a possible offer for the Company.

In accordance with Rule 2.6(a) of the Code, The Carlyle Group is required, by not later than 5.00 p.m. on 14 September 2012, to either announce a firm intention to make an offer for Chemring in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer.

At the request of the Company, the Panel has consented to an extension of this deadline until 5.00 p.m. on 12 October 2012, to enable the parties to continue their on-going discussions regarding a possible offer for the Company. There is no certainty that, at the end of this period, an offer for Chemring will be made, nor as to the terms of any such offer (if made).

Extension of deadline under Rule 2.6(c)

Further to the announcement by Chemring Group PLC ("Chemring" or the "Company") on 14 September 2012 and in accordance with Rule 2.6(a) of the Code, The Carlyle Group is required, by not later than 5.00 p.m. on 12 October 2012, to either announce a firm intention to make an offer for Chemring in accordance with Rule 2.7 of the Code or announce that it does not intend to make an offer.

At the request of the Company, the Panel has consented to an extension of this deadline until 5.00 p.m. on 9 November 2012, to enable the parties to continue their on-going discussions regarding a possible offer for the Company. There is no certainty that, at the end of this period, an offer for Chemring will be made, nor as to the terms of any such offer (if made). This extended deadline may be extended further with the consent of the Panel, at Chemring's request, in accordance with Rule 2.6(c) of the Code.

Great, so the deadline can be extended ad infinitum, which makes a mockery of the deadline rule. Yet another month to wait while the accountants, advisors and corporate meetings cream the expense accounts of the two companies. Would at least be polite to inform investors as to why the process is taking so long.

StockMarketWire.com
Chemring Group has appointed Mark Papworth as chief executive with effect from 5 November.

He will replace Dr David Price, who has resigned with immediate effect.

Papworth formerly worked at Wood Group, a leading FTSE 100 company, where he served as CEO of the gas turbines services division from 2005 and also as an executive director on the Board from 2006.

His career has covered high technology, service and manufacturing companies serving aerospace, energy and infrastructure markets.

Chemring chief departs amid takeover talks by Rose Jacobs - FT
Chemring, the defence group and target of a potential takeover by US private equity firm Carlyle, has replaced its chief executive, citing the need for a leader who can take the company forward independently if no firm offer emerges.

David Price, who joined the ammunition maker in 2005, resigned on Tuesday and will leave the company immediately, with Mark Papworth, a former Wood Group executive, set to replace him on November 5. Chemring said Mr Papworth had “a track record of positioning businesses to focus on long-term growth”, adding the board felt it needed a chief executive with more of a focus on finding production efficiencies and increasing manufacturing capabilities.

“The board has to continue as business as usual since there’s no bid on the table,” the company added.

Chemring’s shares rose by a third in mid-August after Carlyle’s interest was revealed, only to tumble a week later when it said it would miss full-year operating profit forecasts by £15m – a 10 per cent shortfall – because of IT glitches and delays in the production of its latest anti-mine device.

The shares, which are still trading at a 10 per cent premium to their price before the Carlyle announcement, fell more than 5 per cent on Tuesday morning to 328p.

The two groups this month extended a deadline for takeover talks, setting a new deadline of November 9. Ben Bourne at Liberum Capital said that while Mr Price’s departure was a positive development, shares “could fall towards £3” on concerns a deal with Carlyle is looking less likely.

Chemring’s fortunes are tied in part to US defence spending, which remains uncertain ahead of the US presidential elections. Mr Bourne pointed out that Carlyle would have two days between the election and the takeover talks deadline to pounce. “If Romney wins, I suspect Carlyle might say, ‘OK, we’ll have that’,” he said.

Even if not, Chemring could attract interest from other parties such as rival defence groups ATK, Esterline Technologies or Rheinmetall. “It does have some cash-generative assets,” said Mr Bourne.

But investors have grown frustrated with the management team over the past year, as the group struggled to cope with falling defence spending in key markets. Its order book at the end of July was a 10th lower than a year earlier and shares are today two-thirds of what they were in late 2011."

Chemring Group PLC ("Chemring" or "the Group") today provides a statement on current trading at the closing of its financial year ended 31 October 2012.

While the financial year has just closed and full year results are not yet known, three issues have been identified that will reduce our expected profits and earnings per share for the full year. These are:

· A contract for the supply of vehicle based mortar systems for a Middle Eastern customer. Delays in the granting of export licences for a limited number of parts are unlikely to be resolved in the near term and will continue into our new financial year.

· Our expectations assumed the receipt of a multi-year contract for the supply of aircraft countermeasures to a customer in the Middle East. Despite extensive negotiations with the prime contractor the order is now expected to be placed in our new financial year.

· Technical problems on the development of a countermeasure have resulted in this product not being accepted by the customer until further acceptance tests have successfully taken place.


As a result of these three issues, the Group has reduced its expectations for its earnings per share for the financial year ended 31 October 2012 by 13 pence.

Which is probably making Carlyle Group think again. I can't imagine CHG selling now at a depressed price, but that doesn't stop Carlyle going hostile I assume?

this is the 2nd profit warning - go back to august - and there is usually a 3rd one to follow in say 2/3 months ...... at some point, there will be good reason to buy, either because sp is ridiculously low and/or t/o really has become a racing certainty .....

i am not convinced that we have yet reached that point even though sp is now below its lowest point in the last 5 years

Carlyle-Chemring talks terminated


Carlyle does not intend making an offer for Chemring and talks between the two groups have been terminated.

Chemring says while it continues to face near term challenges resulting from defence budget constraints in its NATO markets, which are not expected to ease in the immediate future, the company has market leading positions and manufacturing expertise in the fields of counter-IED, countermeasures, munitions and pyrotechnics.

Chemring will give a further update on 27 November in respect of its preliminary results for the year ended 31 October, which are expected to be announced on 24 January.

far too dangerous to trade in either direction methinks ..... however, i do not think this company will actually fold, as for sure it has much valuable expertise, at least some of which will be highly security-sensitive ...... it follows that at some point (price!) a predator will make an offer that cannot be refused, but at what level is anyone's guess

Credit Suisse reiterated its 'neutral' rating and 330p target price for defence contractor Chemring following The Carlyle Group's announcement last night that it will not be making an offer for the company. The broker said: "We see slim chance of other bids in the short term."

While the shares trade at just 7.8 times forward estimated earrings, Credit Suisse said it is staying cautious, saying that the stock is "clearly volatile given earnings uncertainty".

Looking up?

NIITEK AWARDED $32 MILLION ADDITIONAL HMDS IDIQ DELIVERY ORDERS

Chemring Group PLC ("Chemring") is pleased to announce that its US subsidiary, Non-Intrusive Inspection Technology, Inc. ("NIITEK"), has been awarded two additional delivery orders totaling $32 million to provide spares for both the US Army and US Marine Corps. These delivery orders are issued as part of the multi-year Husky Mounted Detection System ("HMDS") Ground Penetrating Radar ("GPR") Indefinite-Delivery/Indefinite-Quantity ("IDIQ") contract that was awarded on 30 April 2012. This contract not only provides the US Army with the ability to procure spares and replacement systems to replenish theatre sustainment stock, but also provides the ability to serve future system requirements for the US Marine Corps and potential Foreign Military Sales. The potential value of the IDIQ contract is $579 million, with performance into 2013.

Mark Papworth, Chief Executive of Chemring, commented:

"We are delighted that these additional delivery orders enable us to continue our vital support to the US Army and US Marine Corps with NIITEK's HMDS products. Since the inception of the HMDS over four years ago, our commitment remains to provide the best explosives and mine detection capability to US and coalition forces currently in combat, as well as looking ahead to support them as they stand ready to conduct operations around the world."

StockMarketWire.com
* Chemring Group has appointed Steve Bowers as group finance director with effect from 7 January.

He will take over from Nigel Young, who was appointed interim chief financial officer on 31 July.

Bowers was formerly FD of Umeco, the provider of advanced composite materials primarily to the aerospace and defence industries, until its acquisition by Cytec UK Holdings Limited in July.

He joined Umeco in 1998, having qualified as a Chartered Accountant with KPMG, and for 13 years held a number of financial roles, alongside the role of company secretary.

* Chemring Group has appointed Jim Devine as group director of human resources, with effect from 7 January.

He will be a member of the executive committee and will report directly to chief executive Mark Papworth.

Devine began his HR career with British Aerospace plc in 1992, and then spent 10 years at automotive group Ford of Europe in a range of diverse and increasingly senior HR roles.

In 2005 he joined Centrica, the FTSE100 energy group and since 2009 has served as HR Director, Corporate Centre and HR Shared Services.

Investec has reiterated its 'buy' rating and 280p target price for defence contractor Chemring following Thursday's appointment of a new Finance Director in Steve Bowers.

UBS lifts Chemring Group to buy from neutral, target 360p from 300p

Final Results

CHAIRMAN'S STATEMENT

2012 was extremely disappointing for Chemring, our shareholders, our customers and our employees. During the course of the year, against an already challenging market background, a number of additional issues disrupted the operational performance of the business, including problems with the supply chain, contract delays and changes in senior management.

Although the general decline in defence spending in a number of our markets had a significant impact on trading during the year, a large proportion of the problems that affected the Group's performance stemmed from operational issues within the business, a failure to anticipate the impact of changing market dynamics, and poor management of expectations. Overall, this resulted in a significant decline in the market value of the Company.

However, with the appointment of Mark Papworth as Chief Executive in November 2012, followed by the appointment of Steve Bowers as Finance Director in January 2013, we are now rebuilding the senior management team required to lead our recovery. This recovery will focus on operational performance efficiency, margin improvement, and business reorganisation to enable the Group to deal with the ongoing challenges in its end markets. Turning to the balance sheet, there will need to be a tighter focus on the generation and management of our cash flows in order to reduce our levels of debt. The objective is to ensure the business is well-positioned to operate effectively in an environment of constrained defence spending, and to ensure the Group can return to profitable growth.


Trading

Chemring's trading result during 2012 was unsatisfactory. Defence spending pressures on both sides of the Atlantic, but particularly in the USA, affected a number of defence companies during 2012 and Chemring was no different. We failed to anticipate and react to those changing market dynamics quickly enough and to understand the impact on our businesses. Our trading performance suffered as a result. In addition, the overall performance also reflected specific issues at several of our subsidiary companies.

We reported a number of issues during the year. At our Florida subsidiary, we encountered problems with the installation of a new resource planning system which, together with delays on a major contract, considerably eroded its profit. At the year end, the Group's results were significantly below expectations, as we experienced a delay in the receipt of a major order from the Middle East, continued to suffer technical problems with a specific countermeasure product, and were unable to deliver as much of a vehicle based mortar system product as we had anticipated due to export licence difficulties.

Overall, revenue for the year was £740.3 million, an increase of 2%, generating an underlying operating profit* of £88.3 million, down 35%. Underlying profit before tax* fell by 42% to £70.1 million, producing underlying earnings per share* of 28.5p, a fall of 43% against the previous year.

The order intake for the Group was £660.2 million, which is 17% lower than last year. Although we saw strong order growth in our Counter-IED and Pyrotechnics businesses, this was offset by a downturn in order intake within Countermeasures and Munitions. The Munitions segment was affected by export licence delays, and the timing of orders, with several large multi-year contracts having been received in the prior year. The lower order intake in the Countermeasures segment principally reflects lower customer demand, driven by government fiscal and budgetary controls. As a result, the Group's closing order book reached £760.9 million, down 13% on 2011.

Makes for grim reading yet the sp is up this morning! Not complaining and I suppose you could argue the bad news/expectation is already in the sp, but I'm still surprised the sp hasn't been hammered!

i'm afraid that though chemring is a very good company, it is in very much the wrong sector ..... indeed looking at fred's chart at the top of the page, this looks ready short with clear resistance at 300 which is also 200 dma

==================

order book on L2 looks strong, but that may well be earlier short positions being closed - or something (i.e. no idea why!)

Maybe everyone is buying in the hope of a bid from a predator, a rumour which has been doing the rounds from time to time?

never buy on that sort of supposition .... but then as i have just shorted, i would say that wouldn't i!

If the order book is strong, what is the logic behind a short? Possibly current shorters being stopped out, by why would they be? Final results (released at 07.00 hrs) are very poor in comparison to last year's figures, so sp should have been marked down at the open, imo. Surely the risk to shorters now is that all the bad news is already in the sp or that buyers are hoping for a bid?

StockMarketWire.com
Chemring's US subsidiary, Chemring Detection Systems, has been awarded a $28.5m delivery order against a multi-year IDIQ contract to supply chemical detection systems to the US Army.

The Edgewood Contracting Division of the US Army Contracting Command-APG has ordered more than 100 Joint Services Lightweight Standoff Chemical Agent Detectors.

The JSLSCAD remotely detects and identifies multiple chemical agent vapour clouds at ranges up to 5km.

These systems will be installed in the Stryker Nuclear Biological Chemical Reconnaissance Vehicle.

INTERIM MANAGEMENT STATEMENT

Chemring Group PLC ("Chemring" or "the Group") today issues its Interim Management Statement covering the period from 1 November 2012 to date, as required by Rule 4.3 of the Disclosure and Transparency Rules of the UK Listing Authority.

Current trading
Revenue from continuing operations during the first three month period was £136.1 million, compared with £132.4 million in the prior year. Improved trading performances in Pyrotechnics and Counter-IED were offset by weaker performances in Countermeasures and Munitions. Despite the general decline in current NATO defence spending, the Group's order book is currently £756.7 million, marginally lower than the £760.9 million order book at 31 October 2012. A weak order intake in Munitions was compensated by a stronger order intake in Counter-IED, where significant orders were awarded in the period, including a contract for Joint Services Lightweight Standoff Chemical Agent Detectors (US$28.5 million) with the US Army and a contract for the provision of Husky Mounted Detection System ('HMDS') Ground Penetrating Radar (US$32 million) with the US Army. 51.6% of the order book at the end of January 2013 was for delivery in the current financial year.

Counter-IED
Revenue from our Counter-IED business in the quarter was 33% higher than for the same period last year, when there was a pause in demand for HMDS from the US Department of Defense. The solid order intake in the period included the award to NIITEK of a contract for HMDS systems, together with spares and training, for the Spanish Army.

Countermeasures
Revenue at our Countermeasures business was 30% below the same period last year. This was primarily as a result of the lower opening order book and production delays at our US Countermeasures businesses, which are expected to be recovered during the course of the year.

Pyrotechnics and Munitions
Revenue in our Pyrotechnics business increased by 110% compared with the same period last year, whilst revenue at our Munitions business was 22% lower than the same period last year, reflecting the weighting of our production capacity towards smoke and illumination rounds for Middle East customers, rather than artillery ammunition. Order intake at our Munitions business continues to be impacted by delays in the placing of major contracts and by the granting of export licences.

Current financial position
The Group's net debt at the end of January 2013 was £285.9 million (31 October 2012: £244.8 million, 31 January 2012: £316.9 million). The Group continues to closely manage cash and working capital balances.

Outlook
As outlined at the Group's preliminary results release on 24 January 2013, although budget uncertainties continue to impact wider market confidence across the Group's US, UK and European defence markets, Chemring remains focused on driving improvements in its operational performance and restructuring its businesses in order to provide the Group with greater resilience.

An update on progress made against the key priorities for 2013, as outlined at the Group's preliminary results release, will be given alongside Chemring's interim results in June 2013.

NIITEK AWARDED $33 MILLION ADDITIONAL HMDS IDIQ DELIVERY ORDERS

Chemring Group PLC ("Chemring") is pleased to announce that its US subsidiary, Non-Intrusive Inspection Technology, Inc. ("NIITEK"), has been awarded a further delivery order worth $24 million to provide spares for the Husky Mounted Detection System ("HMDS") for the US Army. This supplements the $9 million order received in February 2013. These two latest delivery orders are part of the $579 million multi-year HMDS Ground Penetrating Radar Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract that was awarded on 30 April 2012. All items will be delivered on a firm fixed price basis by April 2014.

Mark Papworth, Chief Executive of Chemring, commented:

"NIITEK's HMDS products perform an essential role in protecting troops against the threat of improvised explosive devices. We are delighted that these additional delivery orders enable us to continue our proven support to the US Army, and that NIITEK will continue to deliver critical spares to ensure their fleet is mission ready."

StockMarketWire.com
Chemring Group's US subsidiary, Non-Intrusive Inspection Technology, Inc, has been awarded a further delivery order worth $76m to provide spares for the Husky Mounted Detection System for the US Army.

This delivery order is issued under the $579m multi-year HMDS Ground Penetrating Radar Indefinite-Delivery/Indefinite-Quantity contract that was awarded on 30 April 2012. The period of performance for this contract is through to May 2014.

The NIITEK HMDS is a high-performance ground penetrating radar system which functions on Husky vehicles to provide real-time identification of anti-vehicular landmines and other explosive hazards on main supply routes and open areas such as minefields

It is always sad to look back at shares which have gone ex-growth when the market was paying a premium for them during the growth phrase.

IDH is another ex-growth share which is floundering now.

I guess if the balance sheets and order books are still good then the 'ex-growth' companies could still be worth looking at.

First and foremost though you should work out if the reason that the shares went ex-growth is a permanent or temporary one and the likely effect this will have on equity growth.

StockMarketWire.com
Defence contractor Chemring said the first six months of the year saw revenue from continuing operations down 10.8% to £297.4m (2012: £333.3m).

Underlying profit before tax reduce by 34.7% to £25.6 million (2012: £39.2 million), and underlying earnings per share were down 35.6% to 10.3p (2012: 16.0p).

In particular, these results reflect lower revenues and profits from our Countermeasures and Pyrotechnics & Munitions operations, which were affected by reduced volumes, continuing production delays due to issues arising last year, and slow order intake.

The order book reduced by 7.9% over the period to £701.1 million (October 2012: £760.9 million). Of this order book, £287.6 million is scheduled for delivery during the current financial year.

Defence spending in NATO markets remains constrained, and our analysis indicates that the global market will continue to contract for the next two years, albeit at a slower rate than being seen at present. Declines in US and NATO defence spending, driven primarily by reduced budgets and the withdrawal from Afghanistan, will significantly outweigh the growth that is expected in other regions of the world.

Mark Papworth, Group CEO, commented: 'The Group has made good progress in the first half. The quality of our operations is improving, and while there is still much to do, we are confident that the Group's performance is heading in the right direction. However, visibility generally, and the limited level of detail on the extent and nature of cuts to US defence spending in particular, makes forecasting increasingly difficult. For the current financial year, the Board's outlook is towards the lower end of expectations.

'Looking ahead, significant progress has been made in our Performance Recovery Programme announced in January 2013. These actions are expected to underpin 2014 profitability, drive improvements in operational performance, and provide greater resilience in current challenging markets.'

"For the current financial year, the Board's outlook is towards the lower end of expectations. "

Says it all for me. However Chemring is a quality company, albeit in a sector that will see declining expenditure over the next couple of years. I'd certainly be looking to pick some up if it continues to fall close to 200p/sh.

Ex-divi wed 24th July 2013 (3.4p)

StockMarketWire.com
Defence group Chemring said revenue from continuing operations for the three month period to the end of July 2013 was £142.8m, compared with £165.1 million in the prior year period, This revenue decline was anticipated.

The Board's current outlook for the full year remains in line with market expectations.

Revenue levels reflect the ongoing deterioration in defence spending within NATO markets and delays in order placement by customers in each of the geographic markets. Indications from the US Department of Defense are that all product orders will be delayed as a result of sequestration, continuing resolution and budget management.

The Group's order book at 31st July 2013 was £747.8 million, 6.7% higher than the £701.1 million order book at 30 April 2013, but lower than the £909.9 million order book at 31 July 2012. 24.7% of the order book at the end of July 2013 was for delivery in the current financial year.

Performance Recovery Programme
The Performance Recovery Programme set out by the new management team in January 2013 is progressing well, with improvements in operational efficiency and responsiveness starting to come through. Customers are beginning to see the benefits of a more co-ordinated approach to product integration and technology development.

Financial position
The Group's net debt at the end of July 2013 was £295.2 million (31 July 2012: £315.2 million).

Outlook
Governments' budget uncertainties and a lack of visibility will continue to impact confidence in the Group's markets, as order placement decisions are delayed. The Board's current outlook for this financial year, absent any material change in customer behaviour, remains in line with market expectations.

Ex-divi wed 2nd Oct (3.5p)

StockMarketWire.com
Chemring has warned that operating profits will be around £8m down due to a variety of factors and that 2014's performance is likely to be lower than the current year.

The group's UK subsidiary, Chemring Countermeasures Ltd, has been awarded a significant countermeasures contract from a Middle Eastern customer and revenue and profits associated with this contract will be recognised in the current financial year, as previously anticipated.

But it says the US government shut down that came into effect on 1 October has resulted in the closure of a large number of government departments and associated activities. This included the Defense Contract Management Agency, the government agency with responsibility for inspecting and approving products for delivery to the US Department of Defense.

The full impact of the shut down is not yet known but it will have an impact on the October order intake and deliveries to the US DoD in the remaining few weeks of the financial year. The group says that since the publication of the third quarter interim management statement in August, quality and production issues, particularly at Kilgore, have continued, resulting in reduced revenue for this financial year. In addition, the sterling/US dollar exchange rate has moved adversely, reducing the sterling value of profits generated in the US. The board's current view is that these factors will impact this financial year's operating profit by approximately £8m.

And it says recent tensions in the Middle East have constrained the availability of shipping to the region and this will have a short term impact on cash receipts for certain munitions contracts until the first quarter of FY14.

Looking ahead it says: "At the interim results presentation in June, Chemring announced that it was initiating a comprehensive planning process which would give a better understanding of both the markets in which we operate and our business strategy for the next three years.

"This is being prepared in conjunction with a detailed budgeting exercise for FY14. Early indications, given the continuing difficult market conditions, are that FY14 performance is likely to be less than the anticipated current year outturn."

StockMarketWire.com
Defence contractor Chemring Group said expectations for the trading performance for the financial year to end-October remain in line with the guidance given at the last trading update.

The issues regarding the US Government shut down have largely been resolved. The Group continues to work through specific production issues, particularly those at Kilgore, and has taken further steps to strengthen the management team at that business.

Revenue in the final quarter was approximately £185 million, down 24% from £242 million in the comparative period. For the year to 31 October 2013, revenue was approximately £625 million (2012: £740 million).

The Group's order book at 31 October 2013 was approximately £702 million, 8% lower than at the end of the previous financial year. These reductions reflect the significant budgetary pressures in Chemring's core defence markets and order deferrals among the Group's non-NATO customer base.

Financial position
As reported on 11 October 2013, delays in deliveries to customers in the Middle East have had a short-term impact on cash receipts, reducing the operating cash inflow for the final quarter of the financial year.

However, despite these effects, net debt reduced by over £45 million in the quarter to approximately £249 million at 31 October 2013 (2012: £245 million). Furthermore, since 31 October 2013, the impact of the delays in deliveries has partially unwound with the receipt of £14 million of cash from the relevant customers.

The Group continues to have a positive relationship with its debt holders and is maintaining a strong focus on managing cash and working capital.

Strategic planning process
Despite the adverse market backdrop, Chemring is making good progress with its strategic planning process.

The majority of this process is now complete, providing a clearer view for each of Chemring's business units of their market environment, competitive dynamics and future prospects.

The planning process has confirmed the Group's market-leading positions and the strength of its technology in a number of areas, and has highlighted new defence and adjacent non-defence opportunities that the Group has yet fully to exploit. In addition, the process has identified a number of further operational initiatives which will allow the Group to reduce the impact of the challenges that external market conditions provide. Chemring has both reshaped its management team better to handle these challenges, and set robust targets for which management throughout the organisation is fully accountable.

Chemring has also concluded that there are a number of business units within the Group which do not form part of its longer term strategy. The Board has therefore started a process to divest of certain of these businesses which is expected to result in an improved financial position for the Group.

Mark Papworth, CEO, commented: "Although the defence environment remains undeniably challenging, we continue to take the necessary steps to give Chemring a stable platform and rebuild shareholder value. These steps will be driven by the results of our strategic planning process that has crystallised our long-term objectives for the business, determined our strategy for the next three years and enabled a re-alignment of our portfolio."

Results for the year ended 31st October 2013 are scheduled to be announced on 23rd January 2014.

StockMarketWire.com
Investec has upgraded its recommendation on defence contractor Chemring (LON:CHG) to "buy" from "hold" on the back of today's pre-close update. The company reported a sharp fall in revenues for the final three months of its financial year, but this was largely expected by Investec, given revised guidance issued back in October. The company also confirmed its intention to divest certain businesses which no longer fit into its longer-term strategy and has definitive plans in place drive improved profit and cash in the remaining business units. The broker said: 'We move to Buy (from Hold) but clearly there is still much that needs to be done. High risk but potentially significant returns available'. Analysts have left their price target unchanged at 260 pence per share.

Surely this stock is dependent on US War effort? With a general economic malaise it's hardly surprising US is cutting spending (esp on UK products!), and with Syria almost spent and Iran/Iraq almost settled....where is the next War?

( Oh yes forgot N.Korea, - but are they really stupid or flamboyant perhaps? Time will tell, but I doubt chaff will deter NK's missiles one the fuse is set.).

Not one of mine at current prices.

StockMarketWire.com
Invesco has reduced its holding in munitions and countermeasures specialist Chemring (LON:CHG) from 44,400,085 shares to 42,407,964 shares taking its stake below the 22% threshold.

StockMarketWire.com
Chemring Group posts underling operating profits of £72.1m for the year to the end of October - 18.3% down on last time.

Revenues were 15.6% lower at £624.9m and underlying earnings per share fell by 24.2% to 21.6p.

Chairman Peter Hickson said: "At the end of a year of significant change, Chemring is now a more resilient business, with a clear strategic direction. Much has been achieved by the new management team during the year, with the positive impact of the performance recovery programme beginning to bear fruit.

"In addition, the strategic planning process has provided a clear view of the market, competitive dynamics and prospects for each of the businesses, as well as identifying the core markets in which the Group will focus investment.

"Chemring will continue to drive improvements in operational performance, and pursue the growth opportunities that exist, particularly within non-NATO markets where defence spending is expected to increase.

"It will also reshape and strengthen its portfolio of businesses through the disposal of non-core activities and technology investment in those businesses that can achieve sustainable growth and margin improvement. Meanwhile, the board's expectations for the current financial year remain unchanged."

http://www.moneyam.com/action/news/showArticle?id=4743625

COMPLETION OF DISPOSAL OF CHEMRING ENERGETIC DEVICES'
CLEAR LAKE BUSINESS

Chemring Group PLC announces that it has successfully completed the sale of Chemring Energetic Devices' Clear Lake build-to-print business to AMTEC Corporation, having received all necessary approvals.

Ex-divi wed 16th Apr (3.8p)

INTERIM MANAGEMENT STATEMENT
Chemring Group PLC ("Chemring" or "the Group") today issues its Interim Management Statement covering the period from 1 November 2013 to date.

Current trading
As anticipated, the challenging market conditions the Group continues to experience across its operations, combined with the effect of adverse foreign exchange movements, has resulted in revenue during the three month period to 31 January 2014 falling to £118.3 million compared with £136.1 million in the same period last year.

The Group's order intake increased by 2.1% against the comparative period, helped by an increasing penetration of non-NATO markets. The order book at 31 January 2014 was £644.5 million, unchanged in the first quarter, after adjusting for the effects of foreign exchange and disposals. Of the order book at 31 January 2014, 55.6% is due for delivery in the current financial year.

http://www.moneyam.com/action/news/showArticle?id=4762943

PROPOSED DISPOSAL OF EUROPEAN MUNITIONS BUSINESS

Highlights:
· Aggregate cash consideration for Mecar and Simmel of up to €167.8 million (£138.0 million) from Nexter Systems SA, following a competitive sale process.

· This strategic disposal re-shapes the Group for future growth and enables Chemring to refocus on its core competencies.

· Chemring will become a focused defence technology business with well-established positions in Sensors & Electronics, Countermeasures and Energetic Systems.

· Significant reduction in pro-forma net debt of £120.4 million from £248.7 million at 31 October 2013 to £128.3 million.

· Net Disposal proceeds will be applied to repay part of the Group's revolving credit facility with the balance offered to holders of the Group's loan notes, with whom it has agreed improved arrangements.

· Since Chemring's IMS released on 27 February 2014, there has been no material change to the Group's current trading and prospects. The Disposal is expected to have a dilutive effect on underlying earnings per share in the current financial year ending 31 October 2014.

· The Disposal is conditional, inter alia, upon the approval of Chemring shareholders and regulatory approval in Italy.

Mark Papworth, Chief Executive Officer of Chemring, said:

"The sale of our European Munitions Business implements a key recommendation of our strategic review and represents a significant milestone as we reposition Chemring for future growth. It not only enables us to strengthen our balance sheet through the reduction of net debt, but also provides us with flexibility to invest in our core technologies. Following the Disposal, Chemringwill have technologies, products and market positioning which provide opportunities to achieve sustainable high margins and revenue growth."

StockMarketWire.com
Chemring Group has acquired 3d-Radar AS, a subsidiary of Curtiss-Wright Corporation, for $3.0m in cash.

3d-Radar, based in Trondheim, Norway, is a leading developer of commercial three-dimensional ground penetrating radar technology. 3d-Radar's unique sensor technology delivers major advances in the ease of use, speed, accuracy and resolution for 3D imaging of underground structures. 3d-Radar's patented GPR technology has already been successfully evaluated and deployed in a broad range of applications in a number of end markets, including sub-surface imaging in road and railway maintenance and airport runway inspection.

Chemring chief executive Mark Papworth said: "This small but strategically important acquisition consolidates Chemring's position as a world leader in GPR technologies. 3d-Radar's commercially available GPR technology expands our ground sensing and detection portfolio, ideally complementing NIITEK's world leading military route clearance offerings and expertise.

"This technology will enable us to further develop our route clearance offerings and to exploit significant opportunities in the commercial sector."

Update on the Disposal of the European Munitions Business
Chemring announces that it has now received appropriate regulatory clearance from the Italian Government in relation to the disposal of Simmel. The satisfaction of this outstanding condition, together with completion of the disposal of Mecar on 19 May 2014 means that Chemring now anticipates completion of the disposal of the European Munitions Business on or around 27 May 2014.

CHEMRING GROUP PLC
INTERIM RESULTS FOR THE SIX MONTHS TO 30 APRIL 2014

Highlights
· Overall interim results in line with expectations. Full year outlook remains broadly unchanged before the effect of further foreign exchange headwind in the second half

· Strong margins in Sensors & Electronics and good operational progress in Energetic Sub-Systems mitigates ongoing issues in US Countermeasures business

· Significant reduction in net debt to £229.2 million at period end (2013: £275.1 million) before receipt of disposal proceeds, reflecting inherent cash generative nature of the business

· Completed small but significant acquisition of 3d-Radar, which consolidates Chemring's leading international position in ground penetrating radar.

http://www.moneyam.com/action/news/showArticle?id=4834724

I'm not quiet sure what Investec are up to!

Canaccord Genuity Sell 194.50 207.50 233.00 - Under Review

Investec Buy 194.50 207.50 260.00 250.00 Reiterates

Westhouse Securities Sell 194.50 207.50 150.00 150.00 Reiterates

Investec Buy 194.50 207.50 260.00 260.00 Reiterates

Panmure Gordon Buy 217.00 219.00 - 328.00 Initiates/Starts

StockMarketWire.com
Chemring reports that third quarter revenues were in line with its forecasts and the focus remains on creating a platform for growth.

The group says its financial strength continues to improve through repayment of £102.5 million ($167.5 million) of loan notes and signing of new revolving credit facility during the period from 1 May.

The group says that based on current expectations of order intake and product delivery and absent any material change in customer behaviour, full year expectations are broadly unchanged.

Revenue from continuing operations for the three month period to 31 July 2014 was £77.5 million, compared with £110.5 million in the same period last year. The Group's order book at 31 July 2014 was £417.5 million, 3.9% higher than the continuing operations order book of £401.8 million at 30 April 2014. Of the order book at 31 July 2014, 25.8% was for delivery in the current financial year.

Chief executive Michael Flowers said: "Our focus remains on creating a platform for growth, as reflected in our strengthened financial position and the improving quality of our operations. The Group has continued to make progress, and whilst the trading environment remains challenging, I am pleased that Chemring has gained a number of contracts that position the Group for the longer term.

"Current world events and increasing NATO commitment indicate the potential for the recent trend of declining defence spending to moderate. Recent customer enquiries and improved order intake gives us confidence that our markets are stabilising. Whilst the timing of international order placement remains difficult to predict, Chemring is well positioned to benefit from any sustained increase in demand."

JP Morgan Cazenove Neutral 233.00 236.00 - 220.00 Reiterates

Panmure Gordon Buy 241.00 237.50 328.00 328.00 Reiterates

Canaccord Genuity Hold 241.00 237.50 160.00 225.00 Upgrades

StockMarketWire.com
Chemring says its board's expectations for the group's trading performance for the year ended 31 October remain in line with guidance given in the interim management statement issued on 17 September.

Revenue from continuing operations in the final quarter was approximately £117m, and was impacted by delays in the shipment of product from the Countermeasures facility at Kilgore, following the incident that occurred in February.

For the year to 31 October 2014, revenue was approximately £475m (2013: £624.9m) and revenue from continuing operations was approximately £403m (2013: £472.3m). The group's order book at 31 October was approximately £486m, an increase of £68m since 31 July 2014. As expected, significant orders from US and Middle East customers have been received, including an order for the Husky Mounted Detection Systems ground penetrating radar product for supply into the Middle East.

StockMarketWire.com
Chemring posts an underlying pre-tax profit of £30.3m for the year to the end of October - down from £51.6m last time.

Revenues fell to £474.9m from £624.9m and underlying operating profits dropped to £49.0m from £72.1m. Revenue from continuing operations was £403.1m (2013: £472.3m).

Chief executive Michael Flowers said: "2014 has been an important and challenging year for Chemring, characterised by a stabilisation and subsequent improvement in operational performance, coupled with a strengthened position on major future US, NATO and broader global programmes. Against a backdrop of a subdued defence market, we see clear opportunities for future revenue growth and improving margins, although risks remain due to continued difficulty in predicting the timing of orders.

"In 2015, the Group will seek to grow market share in Sensors & Electronics, particularly counter-IED. We are well-positioned on strategic programmes in the US, with success in capturing research and development phases of both counter-IED and chemical detection Programs of Record. Our immediate priorities are to secure orders in NATO and the Middle East for our US Sensors & Electronics products, while continuing to improve the performance of all our manufacturing operations. Overall, the outlook for 2015 is unchanged though the timing of Sensors & Electronics contracts is expected to lead to a weighting towards the second half."

StockMarketWire.com
Chemring Group's revenue during the three-month period to 31 January was £61.5m compared with £92.8m a year ago, shareholders at the annual general meeting today will be told.

This was principally due to delays in order intake in the Sensors & Electronics segment, and the conclusion of Husky Mounted Detection System deliveries in 2014. But the group says that encouragingly, order intake was 28.0% higher than the comparative period, and included an increased penetration of non-NATO markets. The order book at 31 January 2015 was £530.2 million (2014: £447.7 million), of which 52.4% is due for delivery in the current financial year. The Group continues to expect to receive a number of Sensors & Electronics contracts from Middle East customers for delivery in the current financial year.

Net debt at 31 January 2015 was £162.1 million (31 January 2014: £253.8 million, 31 October 2014: £135.6 million). £10.0 million of the increase since 31 October 2014 arose on the translation of US dollar-denominated debt.

Looking ahead the group says its focus on operational performance across all its manufacturing businesses will continue to deliver efficiency improvements.

The board's expectations for the full year remain unchanged, though delays to order intake in the early part of the financial year for the Sensors & Electronics segment have led to an increased weighting towards the second half

StockMarketWire.com
Full year expectations at Chemring Group remain unchanged despite a drop in revenues and profits at Chemring Group in the first half of this year, compared to the same period of 2014.

The company says that the fall was due to delays in order receipts and customer acceptance.

Revenues were £161.7m for the six months, down from £208.8m.

Underlying operating profit dropped from £22.4m to £5.5m.

Michael Flowers, group chief executive of Chemring, commented: "Prolonged negotiations and delays in the receipt of significant Middle East orders mean that we expect a heavy weighting of this year's performance towards the second half.

"The receipt of orders exceeding £50.0m since the period end, coupled with further significant orders expected to be won and the resolution of certain operational issues, is expected to result in a strong second half performance.

"We are taking the necessary steps to enable delivery of these orders to commence in the current financial year. Having carefully scrutinised the status of the order pipeline and subject to receipt of key orders in the coming months, our expectations for the full year remain unchanged.

"The first half of 2015 has seen ongoing implementation of Chemring's strategy, with significant success on long-term counter-IED, chemical and biological detection programmes for the US Department of Defense.

"Overall, we are making good strategic and operational progress, and look forward with increasing optimism to the longer-term potential of the Group being delivered."

StockMarketWire.com
Chemring Group's order book at 31 August was £592.1m, 17.8% higher than at the end of April, and its expectations for the full year are unchanged.

Chemring said the increase results from the receipt of orders in excess of £100.0 million relating to the supply of 40mm ammunition to the Middle East.

Revenue in the four month period to 31 August 2015 was £119.0 million, an increase of 23.8% compared with £96.1 million in the same period last year.

Overall, the group's operational performance continues to improve, with delivery levels meeting expectations during the four months to 31 August.

Furthermore, the new advanced countermeasure highlighted in the 2014 annual report and accounts successfully completed customer acceptance tests in July, enabling profits associated with this development to be recognised. Negotiations for the supply of the Husky Mounted Detection System ground penetrating radar to a Middle East customer have recently been substantively progressed.

However, a major order for the supply of 3d-Radar detection equipment into the Middle East, originally expected to be received in the current financial year, is now anticipated to be concluded in 2016.

On 23 June, the Group announced details of an order for non-standard ammunition from the US Government, which was expected to be wholly fulfilled in the current financial year. Whilst formal notification is yet to be received, Chemring understands that this order will shortly be terminated for convenience by the US Government.

The profits anticipated to be generated by Middle East orders for the supply of Sensors & Electronics products and 40mm ammunition should offset the impact of the termination of the non-standard ammunition order. In addition to contributing to the current financial year, the Middle East orders for 40mm ammunition will contribute in future years.

StockMarketWire.com
Chemring Group has warned that despite significant progress having been made, there is potential for delay to revenues from the 40mm ammunition contract announced on 14 September.

And it says that as a result of this and other issues, there is now a realistic prospect that underlying operating profit for the year ending 31 October could be reduced by approximately £16 million to approximately £33 million.

The group says the order book at 30 September stood at £606.3 million; £344.6 million for delivery in FY16, representing more than 75% of expected FY16 revenue of £450 million.

Chief executive Michael Flowers said: "The Group has made good progress in the procurement and qualification of product relating to the major 40mm contract announced on 14 September 2015, for which revenue was included in the Group's previous FY15 expectations. However, despite every effort, we are still awaiting the receipt of necessary permits and export approvals associated with this contract. Given the proximity of our year end, the Board considers that there is now a realistic prospect that the Group does not receive these permits and approvals in time to recognise revenue under the contract in the current financial year.

"These delays are frustrating in the context of the out-turn for FY15. We have, however, significant order cover for future years, with £344.6m of orders on hand expected to be recognised as revenue in FY16.

"The recent progress of the Group has been impeded by its high levels of debt and associated interest costs. Significant time has been spent managing this debt, at the expense of further operational improvement and fully capturing the longer term growth opportunities open to the Group. We have therefore announced today that the Group proposes to launch a fully underwritten rights issue to raise up to £90 million, the proceeds of which will be used to fundamentally address the high levels of debt and to provide a competitive capital structure."

wow! sure glad i was never even remotely tempted to buy into this one

What a disaster.

darling to disaster

Investec comment today:
"Chemring’s unscheduled trading update highlights that, primarily due to a delay in the receiving necessary permits and export approvals for delivery of the new 40mm contract, it is unlikely to meet FY15 consensus revenue, which would result in a meaningful miss to profit expectations. New guidance is for £33m of operating profit, we had £49m. As a result of, but not wholly reliant on, the likely profit miss, the group has announced its intention to undertake a £90m Rights Issue in January. The terms have not been released.
New forecasts: Our headline forecasts reflect the newly available trading information and the proposed fund-raising, but as we do not yet know the terms of the Rights Issue, we have not attempted to factor in an increased share count. As such, FY16E and FY17E EPS and DPS estimates shown below and overleaf do not reflect the expected dilution.
FY15E: We reduce FY15E revenue to £390m from £432m, with the vast majority of the expected shortfall relating to 40mm contract, we understand. The company confirms that it is ready to ship the product when it is able to do so.
FY16E: We reduce operating profit by 12% to £50.7m (a £5.0m reduction), partially compensated by an assumed lower interest cost. Within the divisional mix, we increase our Energetics contribution whilst reducing Sensors & Electronics. Order cover is c.75% with £345m for delivery.
Balance sheet: The group expects to exit FY15E with net debt of £155-165m, which is only modestly higher than previous guidance and reflects the lack of a £12m advanced payment related to the 40mm contract. However, due to the EBITDA shortfall, the company is likely to be close to its banking and loan note covenants. The company will seek to negotiate amendments and a waiver.
Rights Issue: The Board’s aim is to reduce net debt/EBITDA to 1-1.5x as it believes this provides an appropriate capital structure. After costs, the £90m fully underwritten stand-by Rights Issue proposed would reduce leverage towards the bottom end of this range on our new forecasts. The terms of the Rights Issue will be released with the full year results on the 21 January."

The Company has announced that a Rights Issue of up to GBP90 Million will take place in the first quarter of 2016, which will be fully underwritten on a standby basis by Investec and JP Morgan Cazenove.
Terms of the Rights Issue are yet to be announced.

Trading Statement http://www.moneyam.com/action/news/showArticle?id=5160557

Summary of above:

StockMarketWire.com
Chemring says the board's expectations for the group's trading performance for the year to 31 October remain in line with guidance given in the trading update issued on 26 October. Revenue in the final quarter of FY15 was approximately £124 million, resulting in revenue for FY15 of approximately £377 million (2014: £403.1 million).

No revenue or cash advance payment in respect of the 40mm ammunition contract to the Middle East, referred to in the 26 October 2015 trading update, was recognised in FY15. The export approvals associated with this contract have now been granted and revenues are expected to commence once the cash advance payment has been received. The group's order book at 31 October 2015 was approximately £570 million (2014: £486.8 million).

StockMarketWire.com
Chemring Group's underlying pre-tax profits fell to GBP19.8m in the year to the end of October - down from GBP28.1m last time.

Revenues of GBP377.3m were down from GBP403.1m in 2014 and underlying operating profits fell to GBP34.4m from GBP46.7m.

Total operating profit fell to GBP5.5m from GBP25.4m and pre-tax losses rose to GBP9.1m from GBP5.2m.

The group also announced it is raising GBP80.8 million through a 4 for 9 underwritten rights issue to reduce its indebtedness. Net debt increased to GBP154.3m from GBP135.6m in the year to the end of October.

Chief executive Michael Flowers said: "2015 was a disappointing year, with several key export orders in the Sensors & Electronics segment taking longer to materialise than anticipated. In addition, the Energetic Systems segment was heavily impacted in the final quarter of the year by a contract termination and delays to the start of fulfilment of a major order for 40mm ammunition.

"These events have overshadowed the progress we have made in improving the Group's operations, which have resulted in all of our business units being profitable in FY15. This progress reflects our strong management team and growing collaboration within the Group.

"We expect the wider market backdrop for global defence expenditure to be one of slow recovery in 2016. The situation for US defence spending is more stable than it has been for some time, and ongoing geopolitical tensions in the Middle East and elsewhere emphasise the need for robust defence and security measures. The timing of Middle East order placement and contract activity remains difficult to predict, in part due to the impact that recent falls in the oil price are having on Government spending in the region. Nevertheless, our continued customer focus means the Group is well positioned to benefit from any sustained increase in demand in its markets."

4 for 9 fully underwritten £80.8 million Rights Issue
Further to the announcement on 26 October 2015, the Board of Chemring Group PLC today announces a fully underwritten rights issue to raise gross proceeds of approximately £80.8 million to reduce its indebtedness. Chemring's full year results for the financial year ended 31 October 2015 have also been released today in a separate announcement.

Reasons for the Rights Issue and use of proceeds:
· The Rights Issue is being pursued in order to assist the Group with reducing its indebtedness thereby enabling additional time and resources to be made available for further operational improvement and adequate investment in fully capturing the longer term growth opportunities available to the Group.
· US Noteholders and the Group's banking syndicates have provided waivers and variations to amend the operation of the relevant covenants to ensure the Group remains in compliance with its Existing Finance Agreements; these amendments only serve as a short-term solution that would not fundamentally address the Group's balance sheet and capitalisation concerns over the longer term.
· The Board believes that the appropriate leverage target for the Group over the medium-term is a net debt to EBITDA ratio of between 1.0x and 1.5x as the Group's annual average; the proposed rights issue is a critical step towards achieving this target.
· Net proceeds of £75.2 million will be used to redeem £48.5 million in aggregate principal amount of the US Notes, with the balance used for make-whole premiums, waiver fees and general corporate purposes with the Board having regard to future debt maturities.

StockMarketWire.com
Chemring Group has confirmed that, at today's General Meeting, all resolutions regarding the proposed Rights Issue were passed.

Results of Rump placing
Following the announcement yesterday regarding valid acceptances received under the Rights Issue announced by Chemring on 21 January 2016, Chemring is pleased to announce that Investec Bank plc ("Investec") and JP Morgan Securities plc ("JP Morgan Cazenove") have today procured subscribers for the remaining 3,622,547 new ordinary shares of 1 pence each in the capital of the Company (each a "New Ordinary Share"), for which valid acceptances were not received by 11.00 a.m. on 23 February, at a price of 123.50 pence per New Ordinary Share.
Any premium over the total of the Rights Issue offer price of 94 pence per New Ordinary Share and the related expenses of procuring subscribers (including any applicable commissions and amounts in respect of VAT which, in the reasonable opinion of the Joint Bookrunners, are not recoverable) will be paid to Qualifying Shareholders that have not taken up their entitlements pro rata to their lapsed provisional allotments, except that, in accordance with the terms and conditions of the Rights Issue, individual amounts of less than £5.00 will not be paid to such persons but will be aggregated and retained for the benefit of the Company. Cheques and credits to CREST accounts in respect of any amounts payable to Qualifying Shareholders are expected to be despatched by no later than 8 March 2016.
Capitalised terms not defined herein, are defined at Part XI of the combined prospectus and circular published by the Company on 21 January 2016.

StockMarketWire.com
Chemring Group said revenue during the three month period to 31 January 2016 was GBP82.9m, compared with GBP61.5m in the same period last year, with increases in each of the Group's three operating segments.

As reported in the results announcement issued on 21 January 2016, Q1 FY16 trading performance was below management's expectations due to a lower margin sales mix, customer acceptance delays, and specific production and contract finalisation issues.

The order book at 31 January 2016 was GBP593.8 million (31 October 2015: GBP569.6 million).

The 40mm ammunition order for an end user in the Middle East continues to progress towards initial revenues. A further announcement will be made once the advance payment has been received.

JP Morgan Cazenove today reaffirms its neutral investment rating on Chemring Group PLC (LON:CHG) and cut its price target to 135p (from 195p).

Panmure Gordon today reaffirms its sell investment rating on Chemring Group PLC (LON:CHG) and cut its price target to 107p (from 115p).

StockMarketWire.com
Chemring says implementation of the 40mm ammunition contract to an end user in the Middle East, referred to in the company's 21 January results announcement, has commenced, with the related letter of credit in place and advance payment now having been received.

Production activities at Chemring Ordnance and its supply chain partners have begun. Initial revenue will be recognised in Q2 FY16 and as previously advised, this multi-year contract is expected to provide a significant contribution to FY16.

Maybe of interest - the current sp is about 1/3 that when the Stock-Market took fright in 2008 - I'm not sure that PanG's rec SELL is worthwhile when their target price is so close to the current sp. ( Although it may have been higher when released ) - This is because the Buy/Sell charges mean that you need to own a large number for there to be any profit in a relatively small movement - and it's VERY difficult to get yr Timing exactly right - esp as this Co's sp is likely to fall on any News, rather than fly . . . . as might happen in a Bull-Market.

Barclays Capital today reaffirms its underweight investment rating on Chemring Group PLC (LON:CHG) and cut its price target to 120p (from 155p).

StockMarketWire.com
Chemring Group's revenue increased by 11.4% to £180.1 million in the six months to the end of April (2015: £161.7 million) but underlying operating profit fell to £3.8 million (2015: £5.5 million).

There was an underlying loss per share of 1.3p (2015: 0.5p).

The results were principally impacted by a lower margin sales mix, phasing of revenue within FY16, and contract-specific issues resolved in the half. In H2 FY16, substantially higher 40mm contract revenues and greater consistency in production are expected.

These and other factors are expected to lead to a significant H2 weighting of profit and cash generation in FY16, with working capital having risen in H1 in support of expected H2 revenues. The group's order book at 30 April 2016 was £591.3 million (31 October 2015: £569.6 million), of which over £240 million is scheduled for delivery during H2 FY16, representing cover of approximately 90% of expected H2 revenue.

Group chief executive Michael Flowers said: "While revenues increased in every segment, the H1 result was impacted by the slightly later than expected commencement of the 40mm contract, together with a lower margin sales mix, phasing of revenue within FY16, and contract-specific issues resolved in the half. This performance contrasts with a growing sense of momentum across the business as operational improvement initiatives are accelerated following the deleveraging resulting from the rights issue.

"We continue to expect our full year FY16 result to be heavily weighted to the second half, due to substantially higher 40mm contract revenues and greater consistency in production. Whilst it is encouraging that approximately 90% of expected H2 revenue is in the order book, the Board's current assessment is that the FY16 out-turn is likely to be slightly below market expectations.

"Having significantly strengthened the balance sheet through the rights issue, we are now able to focus fully on the operational priorities that will underpin our future growth. These priorities include site rationalisation and capacity investment projects, implementing significant cost saving initiatives, ensuring excellence in contract delivery and delivering improved working capital management. This work is being done while maintaining the highest standards of safety and progressing key strategic long-term US programmes."

I wonder if Chemring's woes aren't that no-one needs so many flares, like during Gulf War etc. As I see it the yield is ( even now at 115p ), pathetically low as only during 2014 the sp was almost double ( with a smaller yield!).
I think the Co name reflects past production - so maybe they need to convince the Public what else it is they do.

JP Morgan Cazenove today reaffirms its neutral investment rating on Chemring Group PLC (LON:CHG) and raised its price target to 140p (from 130p).

Liberum Capital today upgrades its investment rating on Chemring Group PLC (LON:CHG) to buy (from hold) and set its price target at 175p.

Barclays Capital today reaffirms its underweight investment rating on Chemring Group PLC (LON:CHG) and set its price target at 115p.

StockMarketWire.com
Chemring Group expects its trading performance for the year to 31 October to be in line with market expectations, with a slight upside resulting from foreign exchange gains.

Revenue in the final quarter of FY16 was approximately £188.0 million, an increase of 50.6% compared with £124.8 million in the same period last year. Revenue for FY16 was approximately £477.0 million (2015: £377.3 million); on a constant currency basis this figure would have been approximately £440.0 million.

The Group's order book at 31 October was approximately £593.0 million (2015: £569.6 million).

The weakening of sterling, principally against the US dollar, accounts for approximately £103.0 million of the growth in order book. On a constant currency basis, the order book declined year on year against a strong prior year period which contained all of the 40mm ammunition contract.

JP Morgan Cazenove today reaffirms its neutral investment rating on Chemring Group PLC (LON:CHG) and raised its price target to 165p (from 155p)

A mention here

StockMarketWire.com
Chemring posts reported underlying pre-tax profits of £34.0m for the year to the end of October - up 71.7%.

Revenue from continuing operations was £477.1 million (2015: £377.3 million).

This revenue generated an underlying operating profit of £48.5 million (2015: £34.4 million).

Including non-underlying items, total operating profit was £26.2 million (2015: £5.5 million).

The closing order book for continuing operations increased by £23.3 million during the year and at 31 October 2016 was £592.9 million (2015: £569.6 million). The group's net debt at 31 October 2016 was £87.6 million (2015: £154.3 million).

Group chief executive Michael Flowerssaid: "2016 was a busy year for Chemring, both from a corporate and operational perspective, and it is pleasing to see that the efforts of so many have delivered a positive result.

"Order intake and revenue has been solid across the Group, and strong in the Energetics segment.

"Subsequent to the completion of the rights issue and with good cash conversion, the balance sheet is now strengthened, positioning us well for the future.

"Against the backdrop of a stronger balance sheet and improving delivery performance, I see continued opportunities for the group."

Finally seems to be coming back into favour!

Chemring Group PLC is pleased to announce that its US subsidiary, Chemring Sensors and Electronic Systems, has received a contract from the US Army for ten ground penetrating radar trial systems, which will incorporate the Group's enhanced detection technology capabilities. The evaluation of this new capability, if successful, could lead to upgrades of the the US Army HMDS inventory.
Michael Flowers, Group Chief Executive of Chemring, commented: "I am delighted that we have received this contract that will support an Operational Assessment by the US Army. These systems, which incorporate enhanced detection technology developed by Roke and Chemring Technology Solutions in the UK, offer a valuable upgrade to the existing HMDS fleet. The HMDS, a Program of Record for the US Army, is a key part of our long term growth strategy and the continued progression of this capability is encouraging."

StockMarketWire.com
Chemring has withdrawn proposals to change the remuneration policy for directors and set up a new incentive plan which were due to be put to shareholders at the annual general meeting today.

The group said the new policy was developed in line with the Investment Association's executive remuneration working group alternative model proposals.

But it said that following consultations with shareholders, the company no longer intended to seek shareholders' approval for the new policy or the CIP at the AGM, and that the directors' remuneration policy and its associated metrics as approved by shareholders at the AGM held in 2016 would continue to apply.

Chairman Carl-Peter Forster said: "We have been actively engaging with shareholders regarding long-term incentives for some time and, while we received majority support for the proposed revised approach, the Board believes that the right course of action now is to withdraw the resolutions and consider these plans further.

"The board continues to believe that revising the policy is necessary for retaining and attracting the right calibre of talent to ensure the continued sustainable growth of the business and we will re-engage with shareholders to reach a consensus on this important issue."

The group said it had started the year positively, continuing the momentum of the second half of last year.

Order intake in the first four months of the year was in line with the board's expectations at £127.4m (28 February 2016: £88.9m).

Revenue during the four month period to 26 February was £145.6m (28 February 2016: £106.5m), reflecting both the significant weakening of sterling and the fulfilment of contracts in the Energetics Systems division.

The order book at 26 February was £556.9m (28 February 2016: £596.3m, 31 October 2016: £592.9m), the reduction since 31 October 2016, half being attributable to the weaker dollar against sterling and half to stable operational performance resulting in some order backlog being cleared.

JP Morgan Cazenove today reaffirms its neutral investment rating on Chemring Group PLC (LON:CHG) and raised its price target to 185p (from 170p).

INTERIM RESULTS FOR THE SIX MONTHS TO 30 APRIL 2017

Highlights
· Operational and financial performance continues to progress in line with expectations, with improved first half weighting delivering underlying operating profit of £17.2m

· Net debt increased since year end to £111.7m reflecting investment in working capital in Energetics segment and improvements to supplier payment practices

· Safety performance continues to be strong

· Operational Excellence Programme underway with initiatives launched in support of lean operations, supply chain management, integrated sales and marketing operations and safety maturity

· Site consolidation restructuring programme on schedule

· Key US programmes continue to develop, with significant achievements on F-35 and HMDS programmes

· Return on sales improved to 6.9% (H1 2016: 2.1%), driven by greater operational consistency across the Group

· Order intake in H1 of £217.9m (H1 2016: £173.8m). Order book at half year £556.2m (FY 2016: £592.9 m), of which approximately £260m is currently expected to be recognised as revenue in H2 2017, representing cover of approximately 85% of expected H2 revenues

· Board declared interim dividend of 1.0p per share (H1 2016: nil)



Michael Flowers, Chemring Group Chief Executive, commented:

"In the first half of 2017 the Group has continued to build on its H2 2016 performance, with solid order intake and revenue delivery from its operations. The consistency of manufacturing operations across all sites continues to improve, delivering more predictable revenue flow and improved margins.

The Operational Excellence Programme, designed to further enhance safety, improve gross margins and cash conversion, is underway with initiatives launched in support of lean operations, supply chain management, integrated sales and marketing operations and safety maturity. Combined with ongoing site consolidation and cost base management efforts, this is expected to improve both delivery and margin performance over time.

Major programmes underpinning current performance and medium term growth, continue to plan. The four major US Programs of Record continue to evolve, with solid progress made on both the F-35 and HMDS programmes. On the chemical and biological detection programmes, development work has continued, with major customer reviews and tendering activities being the focus of our efforts in the second half.

The Board's expectations for FY 2017 are unchanged."

StockMarketWire.com
Chemring's US based subsidiary, Chemring Countermeasures USA, has been awarded a US$28 million contract by the US Army Garrison at Rock Island Arsenal.

Chemring said the award, which was part of a multi-year option contract in support of the US Army and Air Force, was for the manufacture and delivery of M206, MJU-7A/B and MJU-10/B infra-red decoy flares.

It said deliveries against this contract would be made in FY17 and FY18, with all work being performed at the Kilgore Flares facility, in Toone, Tennessee.

StockMarketWire.com
Chemring's US-based subsidiary, Chemring Countermeasures USA (Alloy Surfaces/Kilgore Flares), has been awarded a two year contract to produce MJU-66 Special Material Decoys for the US Air Force.

The total contract value is up to US$29 million, with an initial delivery order of US$18.4 million in the first year.

All work will be performed at Alloy Surfaces' facility in Chester Township, Pennsylvania.

Group chief executive Michael Flowers said: "We are delighted to receive this contract which shall be delivered from our newly modernised Alloy Surfaces facility in Philadelphia.

"This award demonstrates continuing confidence by the US Air Force in Chemring as a provider of advanced countermeasures, specifically the MJU-66/B decoy, and it recognises our dedication to protecting military personnel.

"We remain committed to being the preferred supplier of the highest quality special material decoys to both the US Department of Defense and our international customers."

CHEMRING GROUP PLC TRADING UPDATE
Chemring Group PLC ("Chemring" or "the Group") today issues a trading update for the four month period from 1 May to 31 August 2017.

Current trading
Revenue in the period was £156.7 million, an increase of 13.4% compared with £138.2 million in the same period last year.

Trading in the period has progressed as planned and the Board's current expectations for the year ending 31 October 2017 remain unchanged.

The Group's order book at 31 August 2017 was £541.8 million, 2.6% lower than the order book of £556.2 million at 30 April 2017. Recent orders received, for delivery in FY18, give us increased confidence in the Group's prospects in the near term.

Segmental update
The period has seen a particularly strong performance from the countermeasures segment, with orders totalling £56.6 million received, operational performance improving and the second Philadelphia plant successfully closed. The majority of these orders were from the US Government for a range of requirements.

In Sensors, trials of enhanced Husky Mounted Detection Systems have been successfully completed in theatre and we are currently working with the customer base to define the next phase of fleet refurbishment and upgrade and next generation development requirements.

Performance across the entire Energetics segment has been robust through the period. Of particular note, Chemring Ordnance has been awarded a contract for the supply of 40mm ammunition to an international customer, valued at approximately US$30.0 million. The Group is currently awaiting the receipt of the cash advance payment and associated export licences, which are expected shortly. Subject to the receipt of this documentation, deliveries are expected to be made in the final quarter. The associated revenue and profit is assumed within our FY17 outlook comment above.

Financial position
Net debt at 31 August 2017 was £125.8 million (30 April 2017: £111.7 million). As expected, the forecast phasing of trading in FY17 results in a weighting of operating cash generation to Q4.

Anyone subscribing to the MoneyAM Level 2 platform please take note that most days it is not reporting the correct Trade High nor Trade Low information and "some days" not reporting the correct Opening Price or Closing Price.

The reason is because MoneyAM's Level 2 system is not sensing the Auto Trades or Ordinary Trades correctly so is wrongly reporting them

MoneyAM has been unable to fix the fault for over 8 weeks now but are still charging full price for their Level 2

StockMarketWire.com
Chemring Group has confirmed that the cash advance payment and export licences associated with the US$30.0m contract to supply 40mm ammunition to an international customer, have now been received.

It said that acceptance of the first delivery had been approved by the customer, and shipments would be ongoing, with the majority of associated revenue and profit being recognised in FY17.

The group said the board's expectations for FY17 full year performance remained unchanged.

StockMarketWire.com
Chemring expects its trading performance for the year ended 31 Oct to be slightly ahead of the board's forecasts.

The group said strong delivery performance in the final quarter had led to full year revenue of £547m, an increase of 15% on the prior year (2016: £477m). The group said its order book at 31 Oct was £478m (2016: £593m).

It said the decline in the order book principally reflected the conclusion of the 40mm ammunition contract to a customer in the Middle East, awarded in 2016, as well as a currency headwind of £33m experienced this year.

It said a number of significant orders were received by both its US and UK Countermeasures businesses in the second half of the year, giving increased confidence in the group's prospects in the near term.

FWIW I can see increased activity in the Korean zone as US prepares for "something".
The other potential war-zone may be nearer to India, with Burma in a strange condition.... However, money talks and the 1% yield is poor

JP Morgan Cazenove today reaffirms its neutral investment rating on Chemring Group PLC (LON:CHG) and raised its price target to 210p (from 205p).

JP Morgan Cazenove today reaffirms its neutral investment rating on Chemring Group PLC (LON:CHG) and cut its price target to 205p (from 210p).

Without a US-war-footing, CHG ranges between £2-plus -and- £1-plus, depending on other sales. "Takeover" sentiment has pushed this to the higher range ( Currently 170-). If there is a TO, then the sp will soar, but that could already be in the prices City-type mention ( and what is their reasoning... that it Can't get worse? ). Sub £2 is probably worth a punt, with N.Korea flexing muscle . . . but Chemring is more-about dogfight style warfare, where chaff is used. DYOR.
So, whilst it would make sense to eliminate competitors by TO..... the business of CHG is not IMHO relevant to the World Order as presently envisaged ..... anyone know better + Disagree?

LONDON (Reuters) - British prosecutors said on Wednesday they had opened a bribery, corruption and money laundering investigation into defence specialist Chemring Group Plc (CHG.L), one of its subsidiaries and individuals associated with the businesses.

The Serious Fraud Office (SFO) said Chemring Technology Solutions (CTSL), which is also being investigated, had handed a report to the authority and that it would examine “the conduct of business by Chemring Group and CTSL including ... officers, employees, agents and persons.”

It declined to comment further during a live investigation.

Chemring, which designs and makes products such as decoys, flares, detonators, grenades and signalling and electronic intelligence equipment, said CTSL’s voluntary report related to two historic contracts.

One dated from before the CTSL business was acquired and the second from 2011, Chemring said in a statement. Neither were “considered material in the context of the group”, it said.

Berenberg today reaffirms its buy investment rating on Chemring Group PLC (LON:CHG) and raised its price target to 228p (from 211p).

Peel Hunt today reaffirms its add investment rating on Chemring Group PLC (LON:CHG) and raised its price target to 195p (from 185p)

Peel Hunt today reaffirms its add investment rating on Chemring Group PLC (LON:CHG) and raised its price target to 210p (from 195p).

CONTRACT AWARDS
Chemring Group is pleased to announce that the UK Ministry of Defence ("MOD") has now confirmed orders for the next two years totalling approximately £23 million.

All contracts are with UK based subsidiaries and are for the supply of countermeasures (£11 million), pyrotechnic products (£8 million) and a range of demolition stores (£4 million).

Deliveries under these contracts will be made during the MOD's financial years commencing April 2018 and April 2019.

Michael Flowers, Group Chief Executive of Chemring, commented:

"We are delighted to receive these awards in support of the UK MOD which further underpin our plans for FY18 and help to build order coverage for FY19.


"As the UK MOD seeks to provide the armed forces with the highest level of protection, receipt of these contracts is testament to both the trusted position that Chemring holds with its key domestic customer and the mission-critical nature of our products in protecting the lives of our armed forces.


"We look forward to continuing to deliver the highest performing and highest quality products in support of our customers."

CONTRACT AWARDS
Chemring Group is pleased to announce that its US based subsidiary, Chemring Countermeasures USA ("CCM USA"), has been awarded contracts totalling $27.5 million for the production of M211 and MJU-64/B flares for the US Army, US Navy and Foreign Military Sales customers. These flares are a key component of aircraft survivability systems that protect fighters, helicopters and transport aircraft against infrared guided missile threats. Deliveries under these contracts will be made between 2018 and 2019, with all work being performed at CCM USA's facility at Chester Township, Pennsylvania.

Michael Flowers, Group Chief Executive of Chemring, commented:
"These contracts demonstrate the confidence of the US Army and US Navy in Chemring's ability to develop and supply quality aircraft countermeasures, and it recognises our dedication to protecting our warfighters.

"We have invested significantly in our global Countermeasures capabilities and facilities and continue to do so, with major improvement programmes ongoing at all sites. I am delighted to see that these investments have positioned the Group to be best able to serve our customers as the preferred supplier of the highest quality infrared flares."

StockMarketWire.com
Shares in UK defence group Chemring rose Thursday after it reported a return to profits in the six months to the end of April and said it expects higher US defence spending to bolster performance.

For the six-months to 30 April, statutory profit before tax rose to £4.3m compared with a loss of £6.8m the previous the year, revenue fell 2% to £229.3m, while underlying earnings per share rose to 410p to 3.20p.

Order intake in the period was £208m, slightly below the £218m seen last year.

The order book at half year was lower at £442m, from £478m the same period a year ago.

Approximately £212m of the £442m is expected to be delivered in the second-half, representing a cover of approximately 80% of expected second-half revenues, the company said.

The company declared an interim dividend of 1.1p per share, up from 1.0p the prior period.

Full-year expectations remained unchanged as the company said it expects increases to the US Defense budget to support performance.

'Market conditions and business performance in the first half of 2018 have continued to strengthen, with margins and earnings improving across the Group,' said Michael Flowers, Chemring Group Chief Executive.

'We expect this trend to continue as the impact of significant increases to the US Defense budget start to flow through, with the Group maximising the impact of these improvements through improved delivery performance resulting from the Operational Excellence Programme.'

Peel Hunt today reaffirms its add investment rating on Chemring Group PLC (LON:CHG) and raised its price target to 240p (from 210p).

Barclays Capital today upgrades its investment rating on Chemring Group PLC (LON:CHG) to overweight (from equal weight) and raised its price target to 266p (from 205p).

(Reuters) - An explosion at a military hardware factory near Salisbury, Wiltshire has left one person dead on Friday, British defence equipment maker Chemring Group Plc (CHG.L) said.

The explosion at the Chemring Countermeasures factory of the British contractor also injured another person who was taken to a hospital, the company said in a tweet.

The site was evacuated and the incident was brought under control, the company said, adding that the defence equipment maker has launched an investigation into the cause of the incident which occurred on Friday evening.

British media had earlier reported on the explosion citing the Wiltshire Police.

“We have two casualties that have been identified. One of them sadly died at the scene and the other has been taken to hospital in a critical condition,” a representative of the Wiltshire Police was quoted as saying by the BBC.

INCIDENT AT CHEMRING COUNTERMEASURES
Chemring Group PLC ("Chemring" or "the Group") confirms that at approximately 5pm on Friday 10th August, an incident occurred in a flare manufacturing building at the Chemring Countermeasures ("CCM") facility, near Salisbury.

Tragically, one employee was fatally injured and another employee was badly injured and is currently receiving treatment in hospital. The emergency services attended the scene and the incident was quickly brought under control.

A full and immediate investigation into the cause of the incident has been launched in co-operation with the local regulatory authorities.

The incident caused damage to parts of CCM's manufacturing operations. Production at the site is currently suspended and a detailed analysis of the possible impact of the incident on the Group's financial prospects has begun.

The impact on our 2018 and 2019 financial years cannot be accurately quantified at this stage as it will be dependent on insurance recoveries, the timeline for the investigation to be completed and the site to re-open, remediation work to be completed and at what rate production resumes.

CCM's deliveries to customers in the final quarter of the financial year ending 31 October 2018 were previously expected to be £25m and to generate a contribution of £15m and the Group's FY18 underlying operating profit is now likely to be approximately £10m - £20m lower than previous expectations, with a corresponding impact on the Group's operating cash flow and net debt.

A further update will be provided when the Group publishes its next trading statement, which is expected on 4 September 2018.

StockMarketWire.com
Defence contractor Chemring Group said Tuesday that it expects underlying profit at the middle of the range provided in August after production was halted at its UK Chemring countermeasures site following an incident.

'The impact on the group's underlying operating profit in the current financial year is likely to be around the middle of the range of £10m to £20m,' the company said.

This comes on the back of a profit warning issued in August after an employee was fatally injured and another employee was badly injured on Aug. 10 in an incident at a flare manufacturing building at the Chemring countermeasures facility.

With the exception of the impact of the Chemring countermeasures (CCM) incident, trading across the Group remained in line with the board's expectations for the four month period from 1 May to 31 August 2018, Chemring said.

The company also confirmed that it was working with regulatory bodies on the UK Chemring countermeasures site restart plan, which would involve completing the shipment of finished goods inventory and initiating a phased restart of non-MTV product lines.

The impact on the 2019 financial year would depend on the site restart plan, as agreed with the regulatory bodies, and expected production rates, the company added.

The company said it was engaging with insurance, but it was 'too early' to assess the amount of any claim or the likely timing of any payments.

StockMarketWire.com
Chemring said Wednesday its US based subsidiary, Chemring Sensors and Electronic Systems, had been down selected as one of the suppliers on the first stream of the Next Generation Chemical Detector.

Next Generation Chemical Detector, or NGCD1, now known as the Aerosol & Vapour Chemical Agent Detector (AVCAD), is the long-term Program of Record for the US Department of Defense to detect traditional and advanced threat vapours, and liquid and solid aerosols.

The resultant contract award, which is expected to be received in the coming months, is expected to take the form of an indefinite delivery, indefinite quantity (IDIQ) contract and would be for the Engineering and Manufacturing Development of the program, the company said.

It would also include options to deliver varying quantities of hardware under Low Rate Initial Production and Full Rate Production phases of the program, the company added.

'As the largest stream under the NGCD Program of Record, the AVCAD award decision is a significant development for Chemring and is the culmination of a number of years of research and development activity,' said Michael Ord, Group Chief Executive of Chemring.

Peel Hunt today reaffirms its add investment rating on Chemring Group PLC (LON:CHG) and set its price target at 240p.

POST YEAR-END STATEMENT
Chemring Group PLC ("Chemring" or "the Group") today provides a post year-end statement in respect of the year ended 31 October 2018 ("FY18").

Key Points
· Underlying trading for FY18 was in line with expectations

· FY18 year-end net debt was £82m

· Significant progress in Sensors, with positions now secured on all targeted Programs of Record. Countermeasures market continues to recover, primarily driven by the US

· Strategic decision to exit from commoditised Energetics businesses and treat as discontinued activities

· FY18 year-end order book was £462m, of which £68m relate to discontinued activities

· Non-underlying items, primarily non-cash, of c.£130m to be included in FY18 results (FY17: £29m)

Michael Ord, Chief Executive, commented:
"We finished the year in line with our expectations for underlying trading and net debt with progress in all businesses and the recovery in the UK Countermeasures business well underway. We have taken two strategic decisions which are reflected in the full-year results. The decision to exit the commoditised Energetics businesses will simplify the Group and enable a greater focus on our growing and differentiated Sensors and Countermeasures positions, where we have recently made significant progress. We also took the decision to review a number of balance sheet items, which in light of the strategic review, are no longer considered fully recoverable. Together, these are necessary actions and part of us building a stronger business for the future. Further detail on my views of the Group and its future direction will be provided in January."