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Chemring FY profit seen ahead of expectations
1st Nov 2019 07:41
(Sharecast News) - Chemring struck an upbeat note on full-year profits on Friday as it announced a contract win.
The defence company said trading for the year to the end of October ended "robustly". As a result, it now expects adjusted operating profit to be slightly ahead of expectations. With lower interest and taxation charges, adjusted earnings per share are also set to be ahead of expectations.
"The continued focus on the management of working capital, cash generation and the reduction of intra period net debt volatility has delivered positive results," it said, adding that net debt at year-end is now expected to be about £76m.
Chemring also said it had secured a further contract with the US Department of Justice to supply 75 units of its chemical agent detector. The units are expected to be delivered in the 2020 financial year.
At 1030 GMT, the shares were up 3.2% at 207.50p.
The defence company said trading for the year to the end of October ended "robustly". As a result, it now expects adjusted operating profit to be slightly ahead of expectations. With lower interest and taxation charges, adjusted earnings per share are also set to be ahead of expectations.
"The continued focus on the management of working capital, cash generation and the reduction of intra period net debt volatility has delivered positive results," it said, adding that net debt at year-end is now expected to be about £76m.
Chemring also said it had secured a further contract with the US Department of Justice to supply 75 units of its chemical agent detector. The units are expected to be delivered in the 2020 financial year.
At 1030 GMT, the shares were up 3.2% at 207.50p.