Chemring shares jumped on Tuesday after the defensive and aerospace company’s order book swelled. The Group benefited from increased defence spending in reaction to European geopolitical events.
Chemring’s order intake rose 81% to £338.2m with solid demand for Countermeasures & Energetics and Sensors & Information.
The Group’s cybersecurity business Roke enjoyed a 44% increase in revenue to £78m, and order intake up 41% to £82m.
Revenue fell in the first half due to contract delays, but the company is set for a solid second half.
Michael Ord, Chemring Group Chief Executive, commented:
“It has been a period of heightened activity across the Group as we adapt to changing customer spending priorities. In response to increased global uncertainty and competition, demand for both technology-driven solutions and a resurgent demand for traditional defence capabilities, has resulted in record H1 order intake and an order book at its highest level for over a decade.”
Chemrings shares were over 8% higher at the time of writing.
“While profits fell in its latest half-year results due to contract delays, investors seem to like the fact that Chemring is one of many companies experiencing stronger prospects thanks to the Russia-Ukraine war encouraging governments around the world to spend more on defence,” said Russ Mould, investment director at AJ Bell.
“It is also worth noting that Chemring’s cybersecurity arm Roke continues to see fast revenue growth as companies and governments boost their digital defences.”