(Alliance News) - Chemring Group PLC on Wednesday said business in the first half of financial 2020 was ahead of expectations due to a strong performance in both its segments and some positive timing differences.
The defence technology firm operates in sensors & information and countermeasures & energetics.
Chemring shares were up 24% at 264.14 pence each in London, the best performer in the FTSE 250 index.
The Romsey, Hampshire-based company reported 37% revenue growth in the six months to the end of April to GBP191.0 million from GBP139.3 million a year before, taking pretax profit up to GBP19.0 million from GBP4.3 million.
Chemring said it saw good progress in securing new business in the UK, US and Australia for the supply of global countermeasures.
First half revenue for the sensors & information division increased by 25% year-on-year to GBP67.3 million, while the countermeasures & energetics unit saw a 45% surge in revenue to GBP123.7 million.
Chemring increased its interim payout by 8% to 1.3 pence a share.
Looking forward, Chemring said all of its businesses have remained open despite the challenges presented by Covid-19. Its full-year expectations are unchanged, with about 95% of expected second-half revenue in the order book or delivered to date.
The order book at April 30 stood at GBP504 million, up from GBP494 million a year ago and GBP449 million at the end of financial 2019.
Chemring separately said it has appointed chartered geologist Fiona MacAulay as a non-executive director with immediate effect.
MacAulay currently serves as director of Ferrexpo PLC and Coro Energy PLC. She also is the chair of Independent Oil & Gas PLC. MacAulay was chief executive of Echo Energy PLC from 2017 to 2019.
By Tapan Panchal; tapanpanchal@alliancenews.com
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