22 June 2010
INTERIM RESULTS FOR THE SIX MONTHS TO 30 APRIL 2010
FINANCIAL HIGHLIGHTS
- Revenue from continuing operations up 10% to £255.9 million (2009: £233.5 million)
- Order book up 16% to £651 million (October 2009: £559 million)
- Order book today at new record high of £751 million, up 25% since June 2009
- Underlying operating profit* up 13% to £52.3 million (2009: £46.1 million)
- Underlying profit before tax* up 7% to £42.3 million (2009: £39.5 million)
- Underlying earnings per share* up 10% at 89p (2009: 81p)
- Profit before tax £25.3 million (2009: £29.9 million)
- Basic earnings per share 52p (2009: 61p)
- Interim dividend per ordinary share up 21% at 17p (2009: 14p)
DIVISIONAL HIGHLIGHTS
COUNTERMEASURES
- Steady growth in revenue, up 7% to £91.9 million (2009: £86.2 million)
- Strong performance from US businesses, revenue up 27% at Alloy Surfaces and up 23% at Kilgore
- Order book up 20% to £279 million from £232 million at last year end
- Order book at Kilgore up 121% compared to last year
PYROTECHNICS
- Revenue at similar level to 2009
- Increased sales of 40mm pyrotechnic rounds to US Army
- Some slippage of European orders into second half
- Encouraging contribution from new acquired Hi-Shear business
EOD
- Excellent first half performance from NIITEK
- Divisional revenues up 92% to £41.3 million (2009: £21.5 million)
- New $106 million US Army order for HMDS gives NIITEK record order book of $134 million
MUNITIONS
- Subdued first half revenue of £54.4 million (2009: £57.2 million)
- Operating profit up 27% to £10.9 million (2009: £8.6 million)
- Hi-Shear awarded $10 million contract for Patriot sub-system
- New US primary explosives facility completed and undergoing certification
RESULTS FOR THE HALF YEAR TO 30 APRIL 2010
|
2010
£m |
2009
£m |
| |
|
|
| Revenue |
255.9 |
233.5 |
| Underlying operating profit* |
52.3 |
46.1 |
| Net finance expense |
(10.0) |
(6.6) |
| Underlying profit before tax* |
42.3 |
39.5 |
| Profit before tax |
25.3 |
29.9 |
| Underlying earnings per share* |
89p |
81p |
| Basic earnings per share |
52p |
61p |
| Dividend per ordinary share |
17p |
14p |
* See Note 2 below
Ken Scobie, Chemring Group Chairman, commented:
“The first six months of this financial year demonstrated the growing strength and quality of the Group’s earnings, with revenue up 10% to £255.9 million (2009: £233.5 million) and underlying profit before tax* up 7% to £42.3 million (2009: £39.5 million). Underlying earnings per share* increased by 10% to 89p (2009: 81p). Our order book grew over the period by a further 16% to £651 million (October 2009: £559 million). As a result, we expect to see a stronger trading performance during the second half of the year and the Group remains on course to meet our full year expectations.
In recent years, your Group has powered ahead through organic growth and a focused acquisition policy, concentrating on its recognised areas of expertise, many in niche markets. We have balanced this growth with a sound financial basis of strong cash flow, conservative gearing and a long term debt profile. The Group has also been highly responsive to the requirements of shareholders in terms of earnings and dividend growth. This business strategy will continue to serve us well in the future. In spite of many commentators’ reservations about the immediate future for the defence industry, the Group’s order book has reached record levels across all our divisions, and the Board believes that we have the products, the services and the dynamism to secure continuing success both in the second six months of this year and in the future.”
Notes:
- All comparisons are for the half year to 30 April 2009.
- Excludes intangible amortisation arising from business combinations, loss on fair value movements on derivatives and acquisition related costs totalling £17.0 million (2009: £9.6 million). Underlying earnings per share* is reconciled to basic earnings per share in note 5 of the interim statement.
- The interim dividend of 17p per ordinary share will be paid on 6 August 2010 to shareholders on the register at 16 July 2010. The ex-dividend date will be 14 July 2010.
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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