Chemring backs FY expectations as interim profit rises

Chemring posted a rise in interim profit on Tuesday thanks to "strong" performances in both of its segments as it backed its full-year expectations.

In the six months to 30 April, underlying pre-tax profit rose to £24.2m from £9.9m in the first half of last year, with revenue up 37% to £191m. The interim dividend was lifted 8% to 1.3p a share.

The defence company said performance was ahead of its expectations, reflecting "strong" showings in both divisions - Sensors & Information and Countermeasures & Energetics - and "some positive timing differences".

Chemring, whose businesses remained open despite the Covid-19 outbreak, said it saw strong growth in orders and revenue in its Roke division. It also said it made good progress securing new business in the UK, US and Australia for the supply of global countermeasures.

Chief executive Michael Ord said: "Noting the challenges presented by the coronavirus pandemic, some positive timing differences which benefited the first half, and with approximately 95% of expected H2 revenue already in the order book or delivered to date, the board's expectations for the full year are unchanged."