Trading Statement

RNS Number : 5395I

Chemring Group PLC

20 November 2008

 



FOR IMMEDIATE RELEASE                                                                                                 20 NOVEMBER 2008

CHEMRING GROUP PLC

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 2008, which are expected to be announced at the end of January 2009.

Trading

The Group performed strongly in the second half of the year, and the earnings for the year remain in line with management's expectations. Cash flow was particularly encouraging, with a commensurate reduction in net debt. The Group's gearing has now reduced to approximately 50%, significantly lower than the 80% level reported at the end of October 2007.     

Energetics

The Energetics division had an excellent second half, with strong organic growth and operating margins significantly higher than in the first half of the year. The newly acquired businesses, Titan, Scot and Martin Electronics, all performed well in the last quarter and are expected to make strong contributions during 2009. Simmel Difesa had an excellent second half with sales exceeding expectations.

Energetics is now the largest division in revenue terms, and generated operating profit broadly equivalent to that generated by the Countermeasures division.  

Countermeasures

The Countermeasures division also performed well in the second half, with sales reaching record levels. Both Chemring Countermeasures and Kilgore enjoyed a record year, with revenues significantly higher than in 2007. Kilgore was, however, affected by delays in customer testing of certain products, which resulted in some revenue and margin being deferred into the first quarter of the 2008/09 financial year. Alloy Surfaces was impacted by slightly lower margins.    

Outlook

The order book for the Group now stands at £409 million, up 26% since October 2007. Despite recent economic events, the strength and visibility of the Group's order book, together with the stability of its customer base, enable the Board to remain confident that the prospects for the Group in 2009 are excellent. 

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

 

END

 

 

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