Business
Trading update and contract wins
Trading update and contract wins.
About this update from Chemring Group Plc
[{"type":"text","content":"\n\n \nFOR IMMEDIATE RELEASE 12 SEPTEMBER 2023\n \nCHEMRING GROUP PLC\nFY23 TRADING UPDATE AND CONTRACT WINS\n \nChemring Group PLC (\"Chemring\" or \"the Group\") today issues a scheduled trading update for the period to 31 August 2023.\n \nCurrent trading and outlook\nTrading in the period has progressed as planned, with continued strong order intake a notable highlight. This provides excellent visibility out to FY25. Expected FY23 revenue is now fully covered by the order book and the outturn for the year ending 31 October 2023 remains in line with the Board's and current analyst expectations*. Achieving full year expectations is subject to US Department of Defense (\"US DoD\") approval of certain countermeasure deliveries, representing c.£25m of revenue, that have already been manufactured and will be recognised once approval is received. The US DoD is expected to grant approval subject to determination of the quality of raw material provided by a third-party supplier that is outside of the control of the Group. The Group is supporting all parties in resolving this matter.\n \nThe Group has received a number of significant orders during the period, detailed below. As at 31 August 2023, order intake for the year to date was £536m (31 August 2022: £365m) and the order book was £829m (31 August 2022: £575m). Encouragingly, order cover for FY24 is building, with Countermeasures & Energetics having 81% order cover of expected revenue and the shorter cycle Sensors & Information sector having 54% cover. \n \nContract awards - Sensors & Information\n \nRoke\n \nIn the Sensors & Information sector our specialist consulting and technology business, Roke, has received a significant award valued at £40m to deliver the next two years of Project ZODIAC for the UK Ministry of Defence (\"UK MOD\"). ZODIAC is the backbone of the British Army's Land ISTAR Programme, and will deliver an integrated intelligence, surveillance, t...