(Alliance News) - Chemring Group PLC said at its annual general meeting on Wednesday that performance is meeting expectations in both business lines.
Engineering firm Chemring makes products such as sensors and countermeasure flares for military customers. It is headquartered in Romsey, Hampshire.
In Sensors & Information, Chemring is seeing increased demand in its Roke business. In Countermeasures & Energetics, its Australia operations have begun delivering the first batches of training countermeasures for the F-35 fighter jet in the US.
In the UK, output is ramping up again following an accident in 2018, Chemring added.
In August that year, one employee was killed and another injured in an accident at one of its UK countermeasure facilities in Salisbury. This resulted in a suspension of operations.
Coronavirus is not impacting operations in a material way, Chemring continued, while continued geopolitical unrest is supporting the need for governments around the world to spend on defence and national security.
As of February 29, Chemring's order intake stood at GBP132 million, compared to GBP120 million a year before. Expected revenue for its financial year ending September is now 88% covered, compared to 86% a prior year.
Chemring's net debt at February 29 was GBP85.9 million, broadly flat from the year before.
The company will report results for the six months to April on June 3. Shares were 0.4% higher on Wednesday morning at 251.50 pence each.
By George Collard; georgecollard@alliancenews.com
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Chemring (CHG)