Chemring Group, a leading defense company based in the UK, has announced that its expectations for fiscal 2023 are on track, pending approval from the U.S. Defense Department for certain deliveries. These deliveries, already manufactured, are anticipated to generate approximately £25 million ($31.3 million) in revenue.
The company stated that it expects approval from the U.S. DoD, awaiting confirmation on the quality of raw materials provided by a third-party supplier that falls outside of their control.
Chemring also provided an update on its performance, revealing that progress up until August 31st has gone according to plan. Furthermore, revenue for the fiscal year ending October 31st is now fully covered by the order book. In terms of specific figures, the year-to-date order intake until August 31st reached £536 million, compared to £365 million in the previous year. Additionally, the order book currently stands at £829 million, up from £575 million in the previous year.
Looking ahead to fiscal 2024, Chemring noted that order cover is steadily increasing. Specifically, its countermeasures & energetics division boasts an 81% order cover of expected revenue, while the sensors & information sector has a 54% cover.
According to analysts’ forecasts for fiscal 2023, adjusted operating profit is expected to range between £65.2 million and £68.2 million, with a consensus of £66.9 million.
In conclusion, Chemring Group remains optimistic about its future prospects, pending approval from the U.S. Defense Department for their deliveries.
