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.

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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.

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."