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Chemring reports wider losses amid production halt at UK countermeasures site

By BFN News | 10:36 AM | Thursday 17 January, 2019


Shares of Defence contractor Chemring Group inched higher Thursday despite reporting a wider pre-tax loss as performance was hurt after halted production was halted following an incident at its UK countermeasures facility. � 
 For year ended 31 December, the company reported a loss before before tax of £22m from a loss of £7m a year earlier, and underlying operating profit was flat at £31m, ?reflecting the impact of the incident at our UK Countermeasures site in August offsetting growth in US countermeasures,' the company said. The company proposed a final dividend of 2.2p a share, giving a total dividend of 3.3p a share, up from 3.0p. Group capital expenditure on 2019 is expected to be in the range of £40m to £50m. The company's expectations for 2019 performance remained unchanged, with a significant second-half weighting amid plans to resume production at its UK countermeasures site. But revenue and operating profit contribution from the site is still expected to be lower than expected before the incident took place, the company confirmed. ?We are working with the appropriate regulatory authorities to agree a phased restart plan across the different activities on site. As such, 2019 is planned to be a year where the site progressively gets back to being fully operational, the company said. 'For 2019 our current assumption is that the site will contribute approximately £30m of revenue and break even after accounting for insurance recoveries and remediation costs. Further investment in automation at the Salisbury site is being evaluated.' 'We ended 2018 in line with our revised expectations. Our trading since the start of the current financial year has been in line with the Board's expectations across all businesses,' At 10:36am: (LON:CHG) Chemring Group PLC share price was +1.2p at 158.8p Story provided by StockMarketWire.com

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