Chemring takes a 20% hit on fresh alertComments Off on Chemring takes a 20% hit on fresh alert
Battered Chemring’s shares have been targeted again, shooting down 20% after the FTSE 250 weapons-maker blasted its latest profit warning.
The flares, decoys and IED detonators-maker is still suffering from Western nations’ reduced shopping list as troops withdraw from Iraq and Afghanistan.
Chemring racked up a £4 million loss in the half-year to April, from £1.3 million a year earlier.
And despite the defence giant striking a profit warning last October, then reiterating in March that it was not meeting City expectations, Chemring has added full-year results will be “slightly below expectations”.
Analysts were expecting annual operating profits to hit £48.7 million. That sent the shares down 28.1p to 111.7p, although boss Michael Flowers was keen to point out that revenues were up and there was a “growing sense of momentum across the business”.
The firm, which employs 2700 people worldwide, was forced into a rights issue early this year after facing a long delay on a big Middle Eastern export order. That fundraiser helped trim debt from £160 million to £114 million.
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