Chemring Group PLC has released its interim results for the six months ending on April 30, 2024. The company reported a record order book of £1,040.6 million, marking a 39% increase from the previous year. Additionally, the order intake for the same period was £344.5 million, representing a 2% increase. The revenue for the first half of 2024 stood at £223.4 million, an 8% growth from the previous year.
The company's underlying EBITDA was £35.5 million, showing a 1% increase, while the underlying operating profit was £25.0 million, reflecting a 5% decrease. Chemring's underlying profit before tax was £22.7 million, down by 10% from the previous year. The interim dividend per share increased by 13% to 2.6p. The net debt at the end of the period was £75.3 million, a significant increase from the previous year, primarily due to the decision to invest in capex.
Key highlights from the report include a record order intake and order book, strong revenue growth driven by performance in specific business segments, and improved cash conversion. The company was awarded £90 million of grant funding to support capex investment, and it plans to increase overall investment in its Energetics capacity expansion plan from £120 million to £200 million, targeting increased revenues and operating profit in 2028.
Chemring's CEO, Michael Ord, expressed confidence in the company's future, stating, "The increase in geo-political tensions around the world is driving a fundamental rearmament upcycle which is expected to last for at least the next decade." The company aims to increase annual revenue to approximately £1 billion by 2030.
The report also highlighted the company's strong long-term prospects, underpinned by robust activity levels, leading technological offerings, and investments in its business. The Board's expectations for 2024 remain unchanged, with a heavier second-half weighting of operating profit. Approximately 93% of expected second-half revenue was in the order book at the end of April 2024.
In conclusion, Chemring Group PLC's interim results reflect a robust performance, with record order intake and a strong order book, positioning the company well for future growth and expansion.