- Full-year pre-tax profit rises 6.1%
- Final dividend hiked by 19% to 3.8p
- Roke cyber security revenue exceeds £100 million for first time
Defence firm Chemring (CHG) delivered an encouraging set of results for the 12 months to 31 October and announced a significant lift to its final dividend.
The war in Ukraine helped boost defence spending, with the company reporting a 13% increase in annual revenues to £442.8 million and a 6.1% rise in pre-tax profit to £51. 8 million.
Revenue in the Sensors & Information division (incorporating the Roke cyber security business) grew by 11% to £162.3 million, while in the Countermeasures & Energetics segment it was up 14% to £280.5 million.
New orders reached £521.5 million, up 28% year-on-year, with order intake for Countermeasures & Energetics hitting £356m, up 40%, driven by multi-year orders received across the sector.
Roke revenue exceeded £100 million for the first time and the company noted that, with order intake up 59% to £168 million, the division is ‘well positioned to continue its growth trajectory in what continues to be a buoyant market’.
As of 31 October the company’s total order book stood at £650.9 million, up 30% year-on-year. The shares were unmoved on the results at 301.5p, perhaps reflecting mild disappointment at a lack of upgrades to 2023 guidance.
‘AN IMPRESSIVE PERFORMANCE’
Chief executive Michael Ord said: ‘Trading since the start of the current financial year has been in line with expectations. With 86% of the 2023 financial year expected revenue covered by the order book, the board's expectations for 2023 financial year performance are unchanged.’
Analysts at Peel Hunt commented: ‘Given the moving parts in the demand profile and production challenges we see this as an impressive performance. The global political landscape and focus areas of defence and security spending underpin our confidence in the story.’
