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Chemring Group HY Loss Widens

Chemring Group plc. (CHG.L) reported that its loss after tax for half year ended 30 April 2018 widened to 14.8 million pounds from last year's 2.2 million pounds in the prior year. Loss per share was 5.3 pence, compared to a loss of 1.2 pence in the prior year.

Underlying operating profit was 18.1 million pounds up from 17.2 million pounds last year.

Statutory profit before tax was 4.3 million pounds, compared to a loss of 6.8 million pounds last year, as a result of improved underlying performance and reduced level of non-underlying business restructuring costs from the first-half of 2017.

Underlying earnings per share were 4.0 pence, up from 3.1 pence in the prior year.

Revenue at constant currency decreased 2% hurt by lower deliveries of 40mm ammunition to customers in the Middle East. Reported revenue declined to 229.3 million pounds from 249.6 3 million pounds in the prior year.

The Board has also declared an interim dividend in respect of 2018 of 1.1p per ordinary share which will be paid on 14 September 2018 to shareholders on the register on 31 August 2018. In accordance with accounting standards this dividend has not been recorded as a liability as at 30 April 2018.

"Approximately 80% of expected H2 revenue is in the current order book or has been delivered to date. The bulk of orders awaited are small routine orders for products or services, with no significant contracts required to be finalised for full year delivery," the company said.

Based on this, current exchange rates and combined with improved operational delivery and improvements being made under the Operational Excellence Programme, the Board's expectations for fiscal year 2018 remain unchanged.

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