27 Jun 2006

Chemring Group PLC today announces its interim results:

  • Profit before tax on continuing operations up 64% to £11.8 million (2005*: £7.2 million)
  • Strong cash inflow generated from operations of £13.4 million (2005*: £2.0 million outflow)
  • Basic earnings per share up 81% at 26.02p (2005*: 14.38p)
  • Adjusted earnings per share** up 90% at 27.74p (2005*: 14.62p)
  • Interim dividend per ordinary share up 50% at 4.80p (2005*: 3.20p)
DIVISIONAL HIGHLIGHTS
  • COUNTERMEASURES
    • Current order book of £121 million (2005: £106 million)
    • Record growth in turnover and profit at Alloy Surfaces
    • Strong first half at Kilgore, meeting all our expectations
  • ENERGETICS
    • New acquisitions performing well and exceeding management targets
    • Current order book of £65 million (2005: £9 million)
  • MARINE
    • McMurdo lights business divested for £2.85 million
    • Divestment plans for remaining businesses ongoing
RESULTS FOR THE HALF YEAR TO 30 APRIL 2006
20062005*% increase
£m£m
Continuing operations:
Revenue82.648.072
Operating profit 14.48.569
Finance expense (2.6)(1.3)
Profit before tax 11.87.264
Basic earnings per share 26.02p14.38p81
Adjusted earnings per share** 27.74p14.62p90

Ken Scobie, Chemring Group Chairman, commented:

“In recent reports I have predicted buoyant prospects for the Group, which the executive management have successfully delivered. The Group’s Countermeasures division still commands more than 50% of the world market for expendable countermeasures and has continued to see a considerable increase in profits. This, combined with the solid start to the year seen in the Energetics division, has helped deliver very strong and encouraging operational and financial performances in the first half. I anticipate that the full year results will demonstrate further the Group’s potential, our growing presence in the defence industry worldwide, and our ability to generate value for our shareholders.”

* See Note 1 below
** See Note 3 below

Notes:

  1. All comparisons are for the half year to 30 April 2005 as restated for IFRS.
  2. The interim dividend of 4.80p per ordinary share will be paid on 15 August 2006 to holders on the register at 28 July 2006. The ex-dividend date will be 26 July 2006.
  3. Adjusted earnings per share is reconciled to basic earnings per share in note 5 of the interim statement.


For further information:

David Price
Chief Executive, Chemring Group PLC
0207 930 0777

Paul Rayner
Finance Director, Chemring Group PLC
0207 930 0777

Rupert Pittman
Cardew Group
0207 930 0777

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