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Chemring Group PLC on Tuesday reported a double-digit rise in revenue and said its annual results exceeded its initial expectations, as it noted that the war in Ukraine increased broad support for long-term defence investment in a ‘riskier world’.
In the financial year that ended October 31, the Romsey, Hampshire-based defence technology manufacturer’s revenue rose 13% to £442.8 million from £393.3 million the previous year, while pretax profit climbed 6.1% to £51.8 million from £48.8 million.
Chemring declared a dividend of 5.7 pence, up 19% from 4.8p the year prior.
Revenue in the Sensors & Information division grew by 11% to £162.3 million while in the Countermeasures & Energetics segment, it was up 14% to £280.5 million.
Order intake was £521.5 million in the recent year, up 28% from £431.0 million. Chemring noted signals of ‘significant growth in European defence budgets’, with countries such as Belgium, Germany, Italy, Norway, Poland, Romania and Sweden having announced plans to increase defence budgets following Russia’s invasion of Ukraine.
‘The medium-term outlook for the European market is positive, and several opportunities for our niche capabilities can be anticipated. Against the new geostrategic backdrop, the group will continue to support the requirements of European allied nations,’ Chemring said.
Meanwhile, Australia also is increasing defence spending. Chemring noted the Australia-UK-US alliance formed in 2021 known as AUKUS, which includes cyber and information collaboration.
The company’s order book stood at £650.9 million on October 31, up 30% from £500.8 million a year before.
Chemring added that trading since the start of its new financial year has been in-line with expectations. As a result, its outlook for its financial 2023 remains unchanged, with 86% of 2023 expected revenue covered by the order book, up slightly from 84% a year ago.
Chemring shares fell 1.1% to 298.31 pence each on Tuesday morning in London.
By Tom Budszus, Alliance News reporter
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