Chemring sales rocket in Q4

17th Nov 2010 08:21

The coalition government's strategic defence review is broadly neutral for military decoy flares and mine detection firm Chemring, which today uncovered a 42% increase in revenue for the fourth quarter.In 2011, the UK will only represent 15% of group revenue, it said. The addition of 12 Chinook helicopters could cause an uptick in demand for expendable decoys, going some way to offsetting the removal of the RAF Harrier fleet which will knock £1m a year off countermeasures sales.And demand for flares to support the twenty two new A400m transport aircraft should outweigh the negative impact of the withdrawal of C130 aircraft.Market conditions haven't changed much since the interim results in mid-September, though the anticipated rise in revenue during the three months to 31 October has been confirmed at £218m, up from £154m a year ago.Total revenue rose 18% to £597m, a "satisfactory" rate of growth as strength in the US, Middle East and Far East cancel difficult European market conditions. The government's "commitment to the Afghanistan mission and the emphasis on Special Forces will maintain demand for improved pyrotechnic and counter-improvised explosive device (C-IED) products that better meet our customers' operational requirements".Full-year results are due on 18 January.