Sharesmagazine
 Home   Log In   Register   Our Services   My Account   Contact   Help 
 Stockwatch   Level 2   Portfolio   Charts   Share Price   Awards   Market Scan   Videos   Broker Notes   Director Deals   Traders' Room 
 Funds   Trades   Terminal   Alerts   Heatmaps   News   Indices   Forward Diary   Forex Prices   Shares Magazine   Investors' Room 
 CFDs   Shares   SIPPs   ISAs   Forex   ETFs   Comparison Tables   Spread Betting 
You are NOT currently logged in
Register now or login to post to this thread.

CHEMRING.WORTH A LOOK. HIGH RATE OF GROWTH (CHG)     

Fred1new - 15 May 2007 13:44





Chart.aspx?Provider=EODIntra&Code=CHG&Si




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.


HARRYCAT - 13 Sep 2012 08:34 - 67 of 178

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

HARRYCAT - 14 Sep 2012 08:42 - 68 of 178

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).

skinny - 12 Oct 2012 07:09 - 69 of 178

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.

HARRYCAT - 12 Oct 2012 09:03 - 70 of 178

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.

HARRYCAT - 23 Oct 2012 09:27 - 71 of 178

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.

HARRYCAT - 23 Oct 2012 09:35 - 72 of 178

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."

hlyeo98 - 01 Nov 2012 08:07 - 73 of 178

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.

HARRYCAT - 01 Nov 2012 09:07 - 74 of 178

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?

cynic - 01 Nov 2012 09:59 - 75 of 178

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

hlyeo98 - 08 Nov 2012 08:08 - 76 of 178

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.

hlyeo98 - 08 Nov 2012 09:38 - 77 of 178

Chart.aspx?Provider=EODIntra&Code=CHG&Si

cynic - 08 Nov 2012 09:54 - 78 of 178

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

HARRYCAT - 08 Nov 2012 11:21 - 79 of 178

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".

skinny - 26 Nov 2012 11:57 - 80 of 178

Looking up?

Chart.aspx?Provider=EODIntra&Code=CHG&Si

HARRYCAT - 20 Dec 2012 09:58 - 81 of 178

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."

HARRYCAT - 03 Jan 2013 09:00 - 82 of 178

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.

HARRYCAT - 03 Jan 2013 12:28 - 83 of 178

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.

HARRYCAT - 10 Jan 2013 10:37 - 84 of 178

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

skinny - 24 Jan 2013 07:05 - 85 of 178

Final Results

hlyeo98 - 24 Jan 2013 08:29 - 86 of 178

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.
Register now or login to post to this thread.