Chemring Group (CHG)

Sector:

Defense and Aeronautics

Index:

FTSE Small Cap

193.60p
   
  • Change Today:
    -1.40p
  • 52 Week High: 203.50p
  • 52 Week Low: 137.60p
  • Currency: UK Pounds
  • Shares Issued: 280.05m
  • Volume: 36,139
  • Market Cap: £542.18m
  • RiskGrade: 158

Chemring says FY results will be more significantly weighted to H2

By Michele Maatouk

Date: Thursday 21 Mar 2019

LONDON (ShareCast) - (Sharecast News) - Chemring backed its full-year expectations on Thursday but warned that revenue, underlying operating profit and cash will be more significantly weighted to the second half due to operational disruption at some of its manufacturing sites.
In a statement ahead of its annual general meeting, the company said: "While there are a number of variables including increased operational execution risk, Brexit and associated international trade licensing, exchange rates and insurance recoveries in respect of the UK Countermeasures incident which occurred last August, expected deliveries in the second half are well covered by the group's current order book."

Chemring said the financial performance of the countermeasures and energetics sector in the first half is expected to be hit by both planned and unplanned operational disruption at some sites.

The phased restart programme for the UK Countermeasures site remains on track with chaff and naval decoy lines now operational. In addition, returning spectral and MTV lines to operation in the third quarter is progressing as planned, with the overall site scheduled to be at steady state manufacturing by the end of the current financial year.

Meanwhile, the Australian site has been offline to enable the change-over to F-35 Lightning II countermeasures manufacturing. The Tennessee and Norwegian sites both experienced the failure of manufacturing equipment, the causes of which have been fully investigated and necessary rectification has taken place.

Chemring said both sites are now operational and plans to recover lost production are in place for the remainder of the year.

"The order book provides excellent short-term revenue coverage for the current financial year and the multi-year nature of some contracts provides good medium-term visibility," it said.

In the sensors and information sector, progress continues to plan on the long-term US Department of Defence Programs of Record with the group maintaining its position in the explosive hazard detection, chemical detection and biological detection major programs.

"The order book, which by the nature of the segment is shorter cycle, provides good visibility of current year revenue," it said.

At 1000 GMT, the shares were down 4% to 148.80p.

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Chemring Group Market Data

Currency UK Pounds
Share Price 193.60p
Change Today -1.40p
% Change -0.72 %
52 Week High 203.50p
52 Week Low 137.60p
Volume 36,139
Shares Issued 280.05m
Market Cap £542.18m
RiskGrade 158

Chemring Group Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
80.66% below the market average80.66% below the market average80.66% below the market average80.66% below the market average80.66% below the market average
23.08% below the sector average23.08% below the sector average23.08% below the sector average23.08% below the sector average23.08% below the sector average
Price Trend
57.89% above the market average57.89% above the market average57.89% above the market average57.89% above the market average57.89% above the market average
7.69% above the sector average7.69% above the sector average7.69% above the sector average7.69% above the sector average7.69% above the sector average
Income
83.43% below the market average83.43% below the market average83.43% below the market average83.43% below the market average83.43% below the market average
80% below the sector average80% below the sector average80% below the sector average80% below the sector average80% below the sector average
Growth
54.84% below the market average54.84% below the market average54.84% below the market average54.84% below the market average54.84% below the market average
38.46% below the sector average38.46% below the sector average38.46% below the sector average38.46% below the sector average38.46% below the sector average

What The Brokers Say

Strong Buy 2
Buy 1
Neutral 1
Sell 0
Strong Sell 0
Total 4
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Chemring Group Dividends

  Latest Previous
  Interim Final
Ex-Div 29-Aug-19 04-Apr-19
Paid 13-Sep-19 18-Apr-19
Amount 1.20p 2.20p

Trades for 14-Oct-2019

Time Volume / Share Price
09:42 217 @ 193.60p
09:42 313 @ 194.00p
09:42 397 @ 194.00p
09:42 68 @ 194.00p
09:42 682 @ 194.00p

Chemring Group Key Personnel

Chair Carl-Peter Forster
Finance Director Andrew Davies

Top of Page