Aerospace tech supplier Chemring boosted by rising defence budgets
Aerospace tech supplier Chemring has had its order intake grow by nearly a third, as governments upped their defence spending in the past year.
The London-listed group recorded £551.5m worth of orders in the 12-month period, which boosted revenue to £442.8m.
Order intake for Chemring’s countermeasures and energetics division, which includes rocket components, decoys and systems against guided missiles, made up most of the order intake – which was up 40 per cent to £356m.
Chemring, which makes defence systems like flares and sensors, is well-placed to benefit from rising global tensions – like most of Britain’s defence titans.
The defence firm’s tally of future orders is also up a third, with the group expecting £650.9m worth of upcoming orders as of the end of October.
The group’s order book currently accounts for around 86 per cent of its expected revenue for the whole of the next year.
The results exceeded the board’s expectations as many businesses brace for the economic downturn, according to chief executive Michael Ord today,
“Our purpose at Chemring is to deliver innovative technologies and products that detect and defeat ever-changing threats and help make the world a safer place. This has never been as important as it is today given the fast changing geopolitical and technological backdrop,” he said in a statement.
“Chemring is well placed, with a robust strategy, market-leading positions across different geographies and sectors, and with products and services that are critical to our government and blue-chip customers around the world. Chemring’s long-term prospects remain strong.”