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The transaction comes just over a week after the company announced it had acquired Erasmus Antiquariaat en Boekhandel, a Netherlands-based supplier of books and journals to academic libraries and government institutions across Northern Europe, for �1.5m. Cashmore said at the time: "We are delighted to have completed another strategic bolt-on acquisition, which is an excellent addition to our books business. "Erasmus extends our Northern European academic business and accelerates our expansion plans. The group will benefit from an increase in scale and a stronger sales presence in Northern Europe."
Chairman Peter Hickson said: "These difficult market conditions are expected to remain in place in 2013, with defence spending in the US, UK and Europe likely to remain under significant pressure." Chemring is now undergoing a five-point 24-month recovery plan, which includes simplified management structure; integration of operations; operational improvement; business development; prioritise cash. Mark Cashmore, the Chief Executive Officer of Smiths News, a newspaper, magazine and book wholesaler, has generated �360,152 on the sale of 219,605 shares sold at 164.00p a time.
The Chief Executive Officer of defence products group Chemring doubled his stake in the company on Thursday, just one week after the company revealed a 'disappointing' set of results for 2012. Mark Papworth, who only joined the board back in October, purchased 50,000 shares at 279.99p each for a total of �139,995. He now holds a 100,000 shares, equal to a 0.052% interest, in the company. On January 24th, the firm, which develops pyrotechnics for the aerospace and military defence sectors, reported a 35% decline in its underlying operating profit, while revenues increased by just 2.0%, as its performance continued to be affected by "uncertainty in key markets and operational issues".
sell...
trades coming out,now coming in...
Chemring Group (CHG) Director name: Ms Sarah Ellard Amount sold: 9,567 @ 279.00p Value: 26,692
Chemring Group (CHG) Director name: Mr Peter Hickson Amount purchased: 20,000 @ 281.80p Value: �56,360
"Chemring continues to provide reliable JSLSCADs to the US Army, and we are proud to support the production of this critical equipment," Mark Papworth, Chief Executive of Chemring, said. "This award is especially important in light of the current international chemical threats. The JSLSCAD offers a unique capability that provides excellent long range, chemical agent detection for the Armed Forces." Chemring Detection Systems is a major provider of stand-off chemical detection to the US Department of Defense.
Chemring Group said Tuesday its US arm Chemring Detection Systems was awarded another contract to supply chemical detection systems to the US Army. The agreement is for a $28.5m delivery order against a multi-year indefinite delivery/indefinite quantity contract. The Edgewood Contracting Division of the US Army Contracting Command-APG ordered more than 100 joint services lightweight standoff chemical agent detectors (JSLSCAD), which identifies chemical warfare agents at ranges up to 5.0km. The systems will be installed in the Stryker Nuclear Biological Chemical Reconnaissance Vehicle.
CHEMRING GROUP PLC CHEMRING DETECTION SYSTEMS AWARDED $28.5 MILLION CONTRACT Chemring Group PLC ("Chemring") is pleased to announce that its US subsidiary, Chemring Detection Systems, has been awarded a $28.5 million delivery order against a multi-year IDIQ contract to supply chemical detection systems to the US Army. The Edgewood Contracting Division of the US Army Contracting Command-APG has ordered more than 100 Joint Services Lightweight Standoff Chemical Agent Detectors ("JSLSCAD"). The JSLSCAD remotely detects and identifies multiple chemical agent vapour clouds at ranges up to 5km. These systems will be installed in the Stryker Nuclear Biological Chemical Reconnaissance Vehicle. Mark Papworth, Chief Executive of Chemring, said, "Chemring continues to provide reliable JSLSCADs to the US Army, and we are proud to support the production of this critical equipment. This award is especially important in light of the current international chemical threats. The JSLSCAD offers a unique capability that provides excellent long range, chemical agent detection for the Armed Forces." -ENDS-
Chemring Group: UBS takes target price from 360p to 380p and retains a buy recommendation. JP Morgan ups target price from 255p to 300p staying with its overweight rating. Espirito Santo increases target price from 320p to 360p, while its buy recommendation is maintained.
Chemring: Investec takes price target from 280p to 335p and leaves its buy recommendation unchanged.
Investec has lifted its price target for defence technology group Chemring from 280p to 335p and reiterated its 'buy' rating for the stock, saying that the business is on the 'road to recovery'. The broker said that Chemring's full-year results are in line with expectations, however this "counts as a positive given the recent history". Revenues rose 2.0% to £740m, down 2.0% on an organic basis, while operating profits dropped 35% to £88.3m. Investec highlighted that the company's five-point 24-month recovery plan is now underway, which includes: simplified management structure; integration of operations; operational improvement; business development; prioritise cash. The broker said: "We make only minor positive adjustments to our forecasts, consistent with the board's guidance, given the uncertainty and early stages of the turnaround plan. "However, the results provide reassurance that group profitability can start to be recovered despite challenging end markets."
Investec has lifted its price target for defence technology group Chemring from 280p to 335p and reiterated its 'buy' rating for the stock, saying that the business is on the 'road to recovery'. The broker said that Chemring's full-year results are in line with expectations, however this "counts as a positive given the recent history".
I'm taking a punt and buying ahead of the update later this month. Fingers crosseed...
Looks like I called this one wrong. Looks like the city likethe new finance guy.
I expect a drop on the interims but think that it will present a good buying opportunity. Appears they've had a few delays on expected contracts that will be reflected in the next update but seem to be fairing pretty well overall.
Watch, look after interims late Jan.
Chemring Group: Espirito Santo cuts target price from 350p to 320p, while reiterating a buy recommendation.
Profit warnings usually come in threes, the old stock market saying goes. This implies that Chemring, which has issued two this year, may have another one up its sleeve. Even so, shares in the defence group already appear to be discounting Armageddon.There is no guarantee that the group will not suffer from government budget cuts for many years to come. However, The company´s new Chief Executive, Mark Mr Papworth, will present his initial views on Chemring’s future and his operational priorities at the full-year results presentation on January 24th. This should be a positive catalyst for the shares. The company is expected to remain profitable and there is no indication yet of a potential dividend cut. Questor thinks that the valuation of the shares is particularly undemanding – despite the substantial risks that could lie ahead. They are now a buy for the more speculative part of your portfolio – although investors should be prudent with the amount of cash invested, the newspaper adds. (Questor Telegraph)
About the best news from Chemring Group’s latest trading statement was that there wasn’t any more bad news,” wrote The Times´s Tempus column on Wednesday morning. That came after the outfit´s latest profit warning, on November 1st, which was its fourth over the past year or so and led to a potential bidder, Carlyle Group, walking away. The latest update rather suggests that the board, including Mark Papworth, the new chief executive, spent the past three weeks or so trying to find something positive to say. Amongst the company´s ills is the scarce forward visibility for US defence, ahead of the resolution of the “fiscal cliff.” Likewise, defence procurement in Britain and on the Continent is going to be held back. Furthermore, a Middle East client has had an export licence delayed because of the Arab Spring. “I suspect this is the nadir of Chemring’s fortunes, but it is hard, in the absence of any further bid activity, to see much catalyst for improvement. A speculative punt, no more,” Tempus adds.
Chemring: Investec reduces target price from 500p to 280p, buy recommendation maintained.
Multiple profit warnings and the decision by Carlyle not to proceed with the takeover have driven the sp way down over the past 12-18 months. I think this is over-sold and perhaps the recent rise is due to the fact that investors are recognising this. Yes, the outlook appears bleak but the company is very cheap at the moment and today's RNS indicates that the CEO will be bringing a new approach so perhaps some optimism for the future. The statement which stands out to me is "There was a significant operating cash inflow in the final quarter that resulted in net debt at the year end of approximately £250 million. (2011: £262.7 million)." I think people were concerned by the possibility that the divi will be cut. Hopefully the improved cashflow situation means that may not happen.
Chemring says 2012 performance "extremely disappointing" 27 November 2012 08:10 Nov 27 (Reuters) – Military equipment maker Chemring Group <CHG.L> said its performance over the year had been "extremely disappointing" and that it was trading in line with the expectations it laid out early this month. At the time, Chemring had issued its second profit warning in less than three months, cutting its full-year profit outlook by more than a quarter after it was hit by delays to contracts, and technical problems. [ID:nL3E8M13JE] "Chemring's operational performance has been weak, and management of investors' expectations over the past year has also been poor," the company said in its first statement to the market since takeover talks with private equity firm Carlyle Group <CG.O> fell through. Chemring, which makes flares, equipment to detect improvised explosive devices and mechanisms used in ejection seats, has had a difficult year. The company disclosed in August that it was the target of a highly preliminary expression of interest from Carlyle, prompting investors to pile into Chemring shares. However, since then the company's stock has slid 45 percent as investor faith was tested following two profit warnings and repeated extensions to the Carlyle merger deadline. The company last month replaced Chief Executive David Price with Mark Papworth, credited with leading a turnaround at oil industry services company John Wood Group Plc <WG.L>, indicating Chemring was preparing for life as an independent company. Carlyle eventually decided to walk away from buying the company after trying to reach a deal for nearly three months, saying the situation with Chemring had gone on long enough. [ID:nWEN8560] The company's shares were up 5 percent at 240.3 pence at 0807 GMT on the London Stock Exchange.
Expectations for the Group’s trading performance for the financial year ended 31 October 2012 remain in line with the trading update issued on 1 November 2012. The following further detail is subject to final audit. Trading in the final quarter was impacted by the issues set out in the 1 November 2012 trading statement that principally affected the Countermeasures and Munitions business segments. As a result, turnover for the financial year ended 31 October 2012 is expected to be approximately £740 million (2011: £725 million). The year end order book of approximately £760 million compares to £878.3 million at the prior year end. Financial position There was a significant operating cash inflow in the final quarter that resulted in net debt at the year end of approximately £250 million. (2011: £262.7 million).