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.

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."