Chemring reports record backlog ahead of annual meeting as higher defence spending benefits group

Aerospace and defence group Chemring has announced “unchanged” full-year expectations ahead of its AGM later today. However, the group also told investors its order backlog now stood at a record high.

The group, which produces countermeasures and sensors for global defence markets, reported a record-high order intake of £922m at the close of October last year, a number that had climbed to £991m at the end of January.

The increase in numbers and positive outlook comes despite weather conditions impacting manufacturing operations in certain locations, chief executive Michael Ord said, rest assuring the full year still “continues broadly to plan”.

“Our order book momentum has been maintained with the receipt of several significant orders, demonstrating continued customer confidence in Chemring’s market-leading products and services,” Ord added.

A “strong order intake” had increased the group’s full-year order cover to 87 per cent, up from 79 per cent at the start of the year, he continued.

The severe weather conditions, namely at the group’s northern Countermeasures & Energetics sites, had delayed deliveries in the first quarter, which the group expects to “be recovered” in the second half of the year.

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