Chemring receives U.S. DoD approvals for countermeasures deliveries

17th Oct 2023 08:10

(Sharecast News) - America's Department of Defense granted Chemring the majority of the approvals needed in order to proceed with the delivery of certain countermeasures.

As a result, the defence engineering and manufacturing group reiterated its financial forecasts for the year ending on 31 October, which it said was also in line with current analysts' estimates.

Chemring put the latter at £66.2m in the case of its adjusted operating profits for the year.

Nonetheless, while it could now proceed to recognise the approximately £25m in associated revenues and related profits, the delays to shipments incurred might result in the funds not being received before 31 October.

If so, they would fall into early in the 2024 fiscal year.

On 12 September, Chemring had cautioned that meeting its full-year expectations was dependant on "certain" approvals from the U.S. DoD for countermeasures linked to the quality of raw materials from a third-party that were "outside of the control of the group".