Chemring Group PLC on Tuesday reported a marked improvement in full-year profitability, despite modest sales growth, supported by a step up in operating margin.
Romsey, Hampshire-based Chemring is a manufacturing and technology firm involved in the security and aerospace sectors.
Pretax profit soared 31% to £67.7 million in the financial year to October 31 from £51.8 million the year prior, with underlying operating profit up 5.6% to £73.5 million from £69.6 million.
Underlying operating profit margin of 14.8%, improved from 14.3% a year ago, reflecting Energetics expansion programmes delivering ahead of schedule.
Revenue rose 1.9% to £497.5 million from £488.3 million, or by 3% at constant currency.
Continued strong momentum in Countermeasures & Energetics was offset by softness in Sensors & Information due to short-term delays in UK government spending, the firm explained.
Chemring highlighted a record order book of £1.35 billion, providing ‘excellent medium-term revenue visibility’ and said the outlook for sustained defence spending ‘remains strong.’
‘Growing geopolitical uncertainty is driving increased expenditure across our target markets, particularly within NATO, and Chemring is well positioned to capitalise on this demand, which we expect to persist well into the next decade,’ said Chief Executive Michael Ord.
Ord said Chemring remains committed to an ambition of doubling annual revenue to £1 billion by 2030.
For financial 2026, expectations for operating performance remain unchanged, with around 76% of expected revenue already covered by the order book.
Chemring declared a final dividend of 5.3 pence per share, up from 5.2p a year ago, taking the total payout to 8.0p, up 2.6% from 7.8p.
Shares in Chemring were down 0.9% at 476.00 pence each in London on Tuesday.
Copyright 2025 Alliance News Ltd. All Rights Reserved.
