Chemring swings to a profit

Defence contractor Chemring said on Monday that it swung to a full-year profit, bolstered by a slightly better-than-expected performance in its sensors and information division.

Chemring swung to a pre-tax profit of £26.7m for the twelve months ended 31 October compared to a £22m loss the year before.

Revenues rose 12.7% to £335.2m, driven by a 51% surge in revenues in its sensors and information unit to £131.9m.

The company's order book grew to £449m from £394m, of which £287m was currently expected to be recognised as revenue in 2020.

Chemring declared a final dividend of 2.4p per ordinary share, taking the total dividend to 3.6p a share for the year from 3.3p in 2018.

Chief executive Michael Ord said: "With a number of significant operational and strategic milestones achieved this year we have made real progress; moving away from commoditised product lines to focus on higher quality, sustainable business areas where we have a competitive advantage."

The Romsey-based outfit said trading since the start of the 2020 financial year had been in line with expectations across all businesses and that expectations for its full-year performance remained unchanged.

As of 0850 GMT, Chemring shares were up 1.26% at 201.50p.