Archived article
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.
Chemring’s cybersecurity hidden jewel is starting to shine

AJ Bell is an easy to use, award-winning platform Open an account
We've accounts to suit every investing need, and free guides and special offers to help you get the most from them.
You can get a few handy suggestions, or even get our experts to do the hard work for you – by picking one of our simple investment ideas.
All the resources you need to choose your shares, from market data to the latest investment news and analysis.
Funds offer an easier way to build your portfolio – we’ve got everything you need to choose the right one.
Starting to save for a pension, approaching retirement, or after an explainer on pension jargon? We can help.
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 business Chemring’s (CHG) cybersecurity unit Roke is an underappreciated part of the business, but it may not go under the radar for too much longer. The company’s results for the year to 31 October revealed revenue from the division exceeded £100 million for the first time with order intake of £168 million, up 59% year-on-year.
Based on previous transactions in the cybersecurity space, which have valued companies at up to six times sales, Roke alone could account for a large part of Chemring’s £856 million market valuation. Chemring acquired Siemens’ UK defence electronics unit (then called Roke Manor Research) for £55 million in 2010. Since then, the company has increased its headcount and built up its expertise to incorporate the protection of networked systems, data analysis, artificial intelligence and connectivity. Annual revenue for the broader group was up 13% to £442.8 million with operating margins down just a touch at 14.5% from 14.6% a year earlier despite rising input costs and increased operating expenses at Roke. Order intake for the Countermeasures and Energetics arm – which sells products which protect against guided missiles and explosives – was up 40% to £356 million. Chemring also confirmed trading in the first weeks of its new financial year has been in line with expectations.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.
Our website uses cookies to give you a better browsing experience.
You can choose to accept all cookies, or control which we use by clicking 'Manage cookies'. To learn more, read our cookie policy.