(Alliance News) - Chemring Group PLC on Friday said it was well positioned for further growth, despite bad weather disrupting deliveries in the first quarter of the financial year.
In an update ahead of Friday's annual general meeting, the Hampshire, England-based provider of technology products and services to aerospace, defence and security markets said its expectations for the financial year were unchanged.
Chief Executive Michael Ord said: "The current financial year continues broadly to plan despite severe weather impacting operations at some of our manufacturing sites".
Chemring disclosed severe winter weather conditions had led to manufacturing operations being interrupted, resulting in delays to some deliveries scheduled in the first quarter.
Delivery impacts are expected to be recovered in the second half of the year, it added.
Ord said this has increased our second half weighting.
Ord also highlighted order book momentum has been maintained with the receipt of several significant orders, "demonstrating continued customer confidence in Chemring's market leading products and services".
"The strong order intake across both sectors has further increased our order cover for [financial year 2024] to 87% and continues to build our order cover in the outer years, positioning the group well for the future," he added.
Chemring said the order book at January 30 was GBP991 million, up 52% from GBP654 million last year.
Chemring said the outlook for global defence markets is "increasingly robust", with continued growth expected over the next decade.
This growing visibility together with the group's strong balance sheet gives the company confidence to continue to invest for the future, Chemring said.
Chemring said both business sectors are in areas of increased activity and budgets. Customers are also investing in digital and electronic capabilities such as active-cyber-defence, electronic warfare, and open-source intelligence, the firm noted.
In the Sensors & Information business, Roke has continued its positive momentum with strong order intake, Chemring noted.
In Countermeasures & Energetics the firm said it continues to see increasing levels of demand for propellants and energetic materials.
Chemring said interim results for the six months ended April 30 will be released on June 4.
Shares in Chemring fell 1.2% to 358.00 pence in London on Friday morning.
By Jeremy Cutler, Alliance News reporter
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Chemring (CHG)