Chemring Group PLC, an international manufacturing and technology company specializing in high-reliability products for Defense, Security, and Space markets, has provided an update ahead of its Annual General Meeting. The Board's expectations for FY24 performance remain unchanged, with the company's niche products and services positioning it well for continued growth in an environment of heightened geopolitical uncertainty. The outlook for global defense markets is robust, and the Group's strong balance sheet provides the flexibility to invest for the future.
The order book at 30 January 2024 was £991m, indicating a significant increase from the previous year. The Sensors & Information sector, particularly Roke, has seen positive momentum with strong order intake, including notable wins in electronic warfare. The Countermeasures & Energetics sector has also experienced increasing demand, securing contracts for propellants and energetic materials, as well as orders from commercial space launch providers and defense entities such as the US Navy.
Severe winter weather conditions have impacted some of the company's manufacturing sites, leading to interruptions and delays in deliveries scheduled for the first quarter. However, the company expects to recover these delivery impacts in the second half of the year. Despite these challenges, the order cover for FY24 has increased to 87%, positioning the Group well for the future.
Chemring Group PLC will report its interim results for the six months ended 30 April 2024 on 4 June 2024. Michael Ord, Group Chief Executive, expressed confidence in the company's performance, stating, "The current financial year continues broadly to plan despite severe weather impacting operations at some of our manufacturing sites which has increased our H2 weighting." The strong order intake across both sectors has further increased the order cover for FY24 and continues to build order cover in the outer years, positioning the Group well for the future.