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.

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