24 Jun 2008
Interim Results for the six months to 30 April 2008
FINANCIAL HIGHLIGHTS
- Revenue from continuing operations up 41% to £150.2 million (2007: £106.8 million)
- Record order book of £425 million, up 45% since June 2007
- Underlying operating profit from continuing operations* up 21 % to £28.2 million (2007: £23.3 million)
- Underlying profit before tax from continuing operations* up 17% to £23.6 million (2007: £20.2 million)
- Profit after tax up 29% to £14.5 million (2007: £11.2 million)
- Underlying earnings per share* up 24% at 52p (2007: 42p)
- Basic earnings per share from continuing operations up 10% at 45p (2007: 41p)
- Interim dividend per ordinary share up 39% at 10.0p (2007: 7.2p)
- £60 million equity issue announced today
DIVISIONAL HIGHLIGHTS
-
ENERGETICS
- Divisional revenue increased by 64% and underlying operating profit* by 44%
- Order book more than doubled to £291 million at June 2008 (2007: £140 million)
- Organic growth of over 20% achieved over a twelve month period
- Simmel Difesa restart successfully completed
- Continued strong performance from both Technical Ordnance and Chemring Defence
- Conditional acquisition of Martin Electronics, Inc. announced today
-
COUNTERMEASURES
- Divisional revenue increased by 21%
- Chemring Countermeasures (UK) increased revenue by 54%
- Success for Alloy Surfaces and Kilgore Flares in securing significant new five year contracts
RESULTS FOR THE HALF YEAR TO 30 APRIL 2008
|
2008
£m |
2007
£m |
% increase |
| Continuing operations: |
|
|
|
|---|
| Revenue |
150.2 |
106.8 |
41 |
|---|
| Underlying operating profit* |
28.2 |
23.3 |
21 |
|---|
| Finance expense |
(4.7) |
(3.1) |
|
|---|
| Share of post-tax results of associate |
0.1 |
- |
|
|---|
| Underlying profit before tax* |
23.6 |
20.2 |
17 |
|---|
| Profit after tax |
14.5 |
11.2 |
29 |
|---|
| Underlying earnings per share* |
52p |
42p |
24 |
|---|
| Basic earnings per share (continuing) |
45p |
41p |
10 |
|---|
| Dividend per share |
10.0p |
7.2p |
39 |
|---|
* See Note 2 below
Ken Scobie, Chemring Group Chairman, commented:
"The prospects for both of our divisions remain excellent. The Group order book has now grown to a record level of £425 million, up 45% compared with this time last year. 36% of the current order book is for delivery in the second half of the year. Historically, our full year revenue has been split 40%/60% between the two halves and, given the status of our order book, the Board is confident that this trend is likely to be repeated.
The strong organic growth achieved in both divisions and the impact of the latest acquisitions continues to give confidence in the future performance of the Group.
With an unchanged strategy, clear direction, responsibility and accountability at each business, and a record order book, I look forward to the Group delivering a substantial increase in performance in the next six months."
Notes:
- All comparisons are for the half year to 30 April 2007.
- Excludes intangible amortisation arising from business combinations of £2.9 million (2007: £0.7 million). Underlying earnings per share is reconciled to basic earnings per share in note 5 of the interim statement.
- The interim dividend of 10.0p per ordinary share will be paid on 29 August 2008 to holders on the register at 8 August 2008. The ex-dividend date will be 6 August 2008.
For further information:
| David Price |
Chief Executive, Chemring Group PLC |
020 7930 0777 |
| Paul Rayner |
Finance Director, Chemring Group PLC |
020 7930 0777 |
| Rupert Pittman |
Cardew Group |
020 7930 0777 |
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