Chemring Group PLC said it has managed to get contracts worth £25.8mln over the line just before its financial year ends, prompting it to lift guidance.
Its UK subsidiary, Chemring Countermeasures UK (CCM UK), has been awarded the contracts by the UK Ministry of Defence (MOD) to develop and supply naval countermeasures in support of the Royal Navy.
Deliveries under these contracts will be made in fiscal 2021 through to fiscal 2023.
CCM UK has also received a £5.5mln contract from the MOD to manufacture air countermeasures in support of the UK armed forces. Deliveries under this contract will be made during fiscal 2021 and fiscal 2022.
The FTSE 250 company said with continued positive momentum across the group, the board’s expectations are for adjusted operating profit to be at the top end of current market expectations. The current range of analyst expectations for adjusted operating profit for the year just ended is £47mln to £53mln.
The closing order book of £476mlm, up from £449mln a year earlier, gives excellent visibility of revenue in the current year in both parts of the group’s business.