Chemring gets early insurance payout, secures two new contracts
Defence contractor Chemring said on Friday that its 2019 results will now be less weighted towards the second half following an early insurance payout, as it announced two contract wins.
In a pre-close statement for the six months to 30 April, the company said its full-year expectations for 2019 are unchanged.
However, as a result of insurance recoveries in respect of the incident at the UK Countermeasures site in August last year being received earlier than previously expected, the H1/H2 weighting of continuing underlying operating profit for 2019 is now expected to be around 30%:70% versus previous guidance of 15%:85.
Chemring also said that its Australian subsidiary has been awarded two "significant" contracts from the US Department of Defence to supply countermeasures to the Royal Australian Air Force, US Navy and Foreign Military Sales in support of the F-35 Joint Strike Fighter and other platforms.
At 0850 BST, the shares were up 0.2% at 151.45p.