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.

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.