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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Defence group Chemring looking smart after trading update

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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Our positive call on defence business Chemring (CHG) is off to steady start. On 14 September the company said its order book had risen in value, providing visibility for the rest of the year and instilling confidence that its results will meet analysts’ expectations.
Chemring’s cyber security subsidiary Roke, one of the key attractions for owning the shares, continues to do well, with further double-digit growth and strong margin performance expected.
This is supported by the June acquisition of machine learning specialist Cubica and investment in the Roke US arm.
Chemring also said its order book as of 31 August was worth £464 million, up from £450 million at the end of April.
The outcome for the financial year to 31 October is expected to be in line with current analyst expectations that range between £56 million and £59.6 million, with a consensus of £57.5 million.
Chemring added that order cover for the 2022 financial year was building. Countermeasures and energetics had 67% order cover of expected revenue and the shorter cycle sensors and information sector had 45% cover.
Berenberg commented: ‘Overall, this was a solid update demonstrating the group’s quality and ongoing resilience.’
SHARES SAYS: Still a buy
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