One analyst described Chemring, the defence contractor that produces ammunition and countermeasures, as “a graveyard for reputations” in the past couple of years. It has been a torrid time; there have been production problems and delays on a significant contract to supply 40mm ammunition to a Middle East client, and there was an £81 million rights issue to reduce debt.
It has been suggested here that the new management has been playing down expectations. The half-way figures to April 30, though containing continuing losses at the headline level, indicate a company that is back on its feet. Revenues are up by 39 per cent to £249.6 million, helped by that Middle East contract feeding through. More significantly, the order book is in healthy shape with