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Chemring Group PLC on Tuesday said it saw record first-half order intake, with its order book reaching the highest level in over a decade at £750 million. Shares were up 7.1% at 287.50 pence each on Tuesday morning in London, among the best FTSE 250-listed performers. The Romsey, England-based provider of technology products and services to aerospace, defence and security markets said pretax profit in the half-year ended April 30 fell 24% to £22.0 million from £28.9 million a year before. Revenue was 3.8% lower at £212.1 million, compared to £220.4 million. The results were in line with the board’s expectations, the firm said, reiterating the second-half weighting for Countermeasures & Energetics due to order intake delays. Its order book as at April 30 stood at £749.5 million, up 54% from £488.1 million on the same date a year earlier, its best level in more than 10 years. Underlying earnings before interest, tax, depreciation and amortisation were down 17% at £35.7 million from £42.8 million a year before. Chief Executive Officer Michael Ord said: ‘Chemring is well-placed to capitalise on its many opportunities and with 90% of expected H2 revenues covered by the order book, the board’s full year expectations are unchanged.’ Chemring declared an interim dividend of 2.3 pence per share, up 21% from 1.9p a year prior. Looking ahead, the firm said its expectations for 2023 are unchanged. About 80% of expected second half revenue was in the order book at April 30. ‘The market backdrop for defence is increasingly positive. With customers needing to re-equip and modernise their defence capabilities, and with the increasing trend of customers looking for long-term partnering agreements providing increased visibility, Chemring’s long-term prospects remain strong. The group will continue to focus on cash generation and maintaining a robust and deployable balance sheet to enable opportunities for further growth,’ Chemring said. Copyright 2023 Alliance News Ltd. All Rights Reserved.
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