Chemring shares surged after it bagged Ministry of Defence contracts worth £31million.The defence engineer said annual profits would top £50million af
Chemring shares surged after it bagged Ministry of Defence contracts worth £31million.
The defence engineer said annual profits would top £50million after clinching the deals just before the end of its financial year.
Its UK subsidiary has been handed a £25.8million contract to make and supply decoy flares – such as those being fired from the fighter above – known as countermeasures, that can be used by the Royal Navy.
Hot shots: Chemring’s UK subsidiary has been handed a £25.8m contract to make and supply decoy flares known as countermeasures, that can be used by the Royal Navy
The flares are used to confuse heat-seeking missiles and guide them away from their original targets.
The same Chemring division was also handed a £5.5million deal to make air decoys.
The Hampshire-based company’s order book was worth £476million when its financial year closed on October 31 – ahead of the £449million it chalked up last year.
The firm believes profits will come in at £50million or more, also ahead of last year’s levels when it made £44million, and at the top end of its £47million to £53million range.
Chemring also makes ejector seats, parts for Nasa’s Mars Rover missions and sensor equipment that can detect bombs and dangerous chemicals.
It has also been helped by high levels of US defence spending and has been shielded from the Covid chaos by the fact it is at the head of the market for many of its niche technologies.