Chemring Q3 revenues up as order book grows

Chemring reported a jump in revenue for the third quarter and said its expectations for the full year remain unchanged.

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In a trading update for the three months to the end of July, the company said revenue rose 20.2% to £109.1m.

In addition, Chemring said trading on the 40mm ammunition contract to an end user in the Middle East is progressing in line with its expectations.

During the period, the group received a $3.1m research and development contract for the US Next Generation Chemical Detection (NGCD) Program of Record. It has now progressed to the prototype phase on all three variants of this long-term programme.

Chemring’s order book stood at £665.9m at the end of July, up 12.6% from 30 April, with the recent weakening of sterling, principally against the US dollar, accounting for £50.5m of the growth.

Net debt at the end of July was £147m versus £114.4m at the end of April.

At 0915 BST, Chemring shares were up 0.6% to 141.90p.