Chemring growth 'encouraging'

18th Jan 2011 08:07

A stronger second half at Chemring was behind a 14% increase in underlying profits at the military decoy flares and mine detection firm.Profit before tax, acquisition related costs, intangible amortisation and the impact of derivatives rose to £116.8m from £102.6m. It had risen 7% to £42.3m in the first half.Revenue for the 12 months to 31 October was up 18% at £597.1m, as flagged in November alongside a 42% surge in fourth quarter sales. Interim revenue had grown 10% to £255.9m."Two thirds of our growth was organic, which is very encouraging," said chairman Peter Hickson. "Our current order book of £902m, our solid balance sheet and our proven strategy for growth provide clear visibility of the prospects for 2011 and should provide the foundation for further growth in the future."The counter-IED division did well. Its NIITEK unit, which supplies US troops in Afghanistan with hi-tech ground penetrating radar systems capable of finding deadly improvised explosion devices, grew revenue by 124% to £102m.There were all big gains in munitions where revenue leapt 35% to £115.9m and at countermeasures, up 7% to £196.3m.