CHEMRING GROUP PLC
INTERIM RESULTS FOR THE HALF YEAR TO 30 APRIL 2012
HIGHLIGHTS
· Current order book up 14% at record high of £1 billion
· NIITEK finally awarded multi-year support contract at period end, significantly increasing the Group's second half weighting
· Revenue from continuing operations1 up 4% to £333.3 million (2011: £319.3 million)
· Disposal of Chemring Marine business announced - results excluded from all figures relating to continuing operations
· Non-NATO revenue up 31% to £101.6 million (2011: £77.5 million)
· 30% of revenue from non-NATO customers (2011: 24%)
· Underlying profit before tax1,2 down 21% to £39.2 million, principally due to delays in US defence orders, particularly the NIITEK contract
· Underlying earnings per share from continuing operations1,2 16.0p (2011: 20.9p)
· Interim dividend per ordinary share up 33% at 5.3p (2011: 4.0p)
Dr David Price, Chemring Group Chief Executive, commented:
"As expected, the Group's results for the first six months of the year were affected by the Continuing Resolution in the US and the US Government's delay in awarding the NIITEK $579 million multi-year support contract until the last day of the period.
Significantly, our order book grew by 14% to a new record of £1 billion, and remains the best leading indicator of our future growth. The order book at 30 April provides 94% cover for full year revenue
The second half has started well, with trading in May up over 50% year-on-year. The Board is confident that the Group will deliver a strong second half trading performance, with increased operating margins that will enable us to meet our full year expectations."
