23 June 2009
INTERIM RESULTS FOR THE SIX MONTHS TO 30 APRIL 2009
FINANCIAL HIGHLIGHTS
- Revenue from continuing operations up 55% to £233.5 million (2008: £150.2 million)
- Record order book of £603 million, up 42% since June 2008
- Underlying operating profit from continuing operations* up 64% to £46.1 million (2008: £28.2 million)
- Underlying profit before tax from continuing operations* up 67% to £39.5 million (2008: £23.6 million)
- Underlying earnings per share* up 56% at 81p (2008: 52p)
- Profit before tax up 44% to £29.9 million (2008: £20.7 million)
- Basic earnings per share up 36% at 61p (2008: 45p)
- Interim dividend per ordinary share up 40% at 14p (2008: 10p)
DIVISIONAL HIGHLIGHTS
ENERGETICS
- Revenue increased by 86% to a record £147.3 million and operating profit more than doubled to £28.8 million
- Order book £353 million, up 21% since June 2008
- Excellent performance by Simmel Difesa
- Margin improvement at Chemring Defence and Chemring Marine
- Strong contribution from Niitek in the period since acquisition
COUNTERMEASURES
- Good growth in the first half, with revenue up 22% to £86.2 million and operating profit up 25% to £23.7 million
- Order book £250 million, up 87% since June 2008
- $82.8 million decoy contracts received by Alloy Surfaces in June
- Capital projects valued at £25 million commenced in Salisbury and Australia
RESULTS FOR THE HALF YEAR TO 30 APRIL 2009
|
2009
£m |
2008
£m |
| Continuing operations: |
|
|
|---|
| Revenue |
233.5 |
150.2 |
|---|
| Underlying operating profit* |
46.1 |
28.2 |
|---|
| Finance expense |
(6.6) |
(4.7) |
|---|
| Share of post-tax results of associate |
- |
0.1 |
|---|
| Underlying profit before tax* |
39.5 |
23.6 |
|---|
| Profit before tax |
29.5 |
20.7 |
|---|
| Underlying earnings per share* |
81p |
52p |
|---|
| Basic earnings per share |
61p |
45p |
|---|
| Dividend per share |
14p |
10p |
|---|
* See Note 2 below
Ken Scobie, Chemring Group Chairman, commented:
“It is a pleasure to report further significant growth in the first half of the year, with revenue up 55% to £233.5 million (2008: £150.2 million) and underlying profit before tax* up 67% to £39.5 million (2008: £23.6 million). Underlying earnings per share* increased 56% to 81p (2008:52p).
These are excellent results and reflect the significant progress made in increasing our Energetics market share, as well as substantially improving our first half operating margins.
The strength of our countermeasures business around the world and the opportunities for growth - both organic and acquisitive - demonstrated by our now larger Energetics division, combined with the Group’s strong cash flow, suggest that we can maintain above average growth in the immediate future. The Board’s judgment is based on the successful, consistent business strategy of the Group.
I am confident therefore that I will be able to report to shareholders in January 2010 on another very successful year.”
Notes:
- All comparisons are for the half year to 30 April 2008.
- Excludes intangible amortisation arising from business combinations and loss on fair value movements on derivatives of £9.6 million (2008: £2.9 million). Underlying earnings per share is reconciled to basic earnings per share in note 5 of the interim statement.
- The interim dividend of 14p per ordinary share will be paid on 7 August 2009 to holders on the register at 17 July 2009. The ex-dividend date will be 15 July 2009.
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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