Trading Update

RNS Number : 7524C

Chemring Group PLC

19 November 2009

 



FOR IMMEDIATE RELEASE                                                                                               19 NOVEMBER 2009

CHEMRING GROUP PLC

PRE-CLOSE TRADING UPDATE

Chemring Group PLC ("Chemring" or "the Group") today provides an update on trading before entering the close period in respect of its preliminary results for the year ended 31 October 2009, which are expected to be announced at the end of January 2010.

Trading

The Group performed strongly in the second half of the year, and the earnings for the year are in line with management's expectations. Cash flow was strong in the last quarter, with gearing reducing to approximately 45%, significantly lower than the 66% reported at the end of April 2009. 

Energetics

The acquisition of NIITEK in December 2008 has proved particularly successful, with over forty four of its mine detection systems sold in the year. NIITEK is pursuing a number of opportunities for its mine detection products with various NATO countries.

Simmel Difesa produced an excellent year end result, with significant year on year growth. 

The acquisition of Hi-Shear Technology Corporation, announced on 16 September 2009, is expected to complete by the end of November. The acquisition will help create a strong platform for growth in space and missile defence markets.

Countermeasures

The Countermeasures division performed well in the year, and delivered strong organic growth. This growth was achieved despite the delay in receipt of several key orders at Kilgore until late in the financial year, which resulted in Kilgore's revenue being below expectations, although its order book is now at a record level. 

Board succession

Chemring's current Chairman, Ken Scobie, was appointed in 1997 and is now seventy one years of age. The Board advises that the process of finding a suitable candidate to succeed Mr Scobie when he retires is underway.

Outlook

The Group's order book now stands at £559 million, up 37% since October 2008. The Board continues to be confident that the outlook for 2010 remains in line with its expectations. 

For further information:

Dr David Price	Chief Executive, Chemring Group PLC	01489 881880
Paul Rayner	Finance Director, Chemring Group PLC	01489 881880
Rupert Pittman	Cardew Group	020 7930 0777

 

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