Chemring locks in on target despite weather

Military decoy specialist Chemring has radioed in a 5% increase in trade during the four months to the end of February at constant currency despite taking a hit from snow storms in both the UK and US.

It said deliveries were affected in January and February as bad weather disrupted production in most of its US and UK subsidiaries, although the impact will be recovered in the next two to three months.

The company, whose shares have rallied 70% since last August, boasts a record order book, up 17% from last year at £653m, and is confident that the outlook for 2010 remains in line with its expectations.

Pre-tax profits for the year to 31 October climbed to £95.8m from £57.7m on sales up to £503.9m from £354.2m.

Higher than expected order intake levels at Kilgore Flares helped the US countermeasures businesses perform well this time. It's won deals with the Department of Defence to supply decoy flares used to protect B-52s and F-22 Raptor aircraft from the threat of infra-red guided missiles.

Over at the Energetics division, strong growth has been generated by US subsidiary, Non-Intrusive Inspection Technology, with "considerable" interest being shown by NATO and other coalition forces in Chemring's Husky Mounted Detection System ground penetrating radar.

With the acquisition of US space and defence business Hi-Shear and seasonal working capital outflows, net debt at 28 February grew to £265m, but is expected to fall in the coming months.