We must apparently add Chemring to the long list of companies affected by the low oil price. It makes countermeasures such as chaff to protect aircraft from missiles and against improvised electronic devices and other defence equipment. This is mentioned twice in the results as a possible source of uncertainty, as budgets of its oil-producing clients come under pressure.
It has not happened yet, the company admits. There were three factors that affected 2015 figures to October 31 adversely — two known and one unknown. The knowns were the end of a contract to supply the US military with non-standard ammunition and delays in supplying a Middle Eastern client with anti-IED equipment.
Indications from the US defence budget suggest stability and some uptick in spending.