Chemring sees FY earnings 'slightly ahead' of consensus expectations

Chemring said on Thursday that results for the current year are set to be "slightly ahead" of consensus analyst expectations of £62.2m adjusted operating profit thanks to recent contract wins.

In an update on trading ahead of its annual meeting later in the day, the company said both sectors have performed well since the start of the current financial year, in line with management expectations.

It put its upgraded full-year expectations down to "recent positive order intake", including Roke's award of an £8m contract to supply electronic warfare equipment to the Swedish Ministry of Defence, which is expected to be partially delivered in FY22.

"The group continues to successfully manage the ongoing post-Covid-19 challenges with its supply chain, labour availability and other inflationary pressures," Chemring said. "The group has worked to pass through costs and to generate additional operational efficiencies, and as such does not expect there to be any material short-term financial impacts."

Chemring provides a range of technology products and services to the aerospace, defence and security markets.

At 0840 GMT, the shares were up 2.8% at 335.50p.