Chemring reports widening losses

Defence manufacturer parts company with chief executive on the back of half-year results

Defence manufacturer Chemring has reported pre-taxed losses of £72 million for the six months to 30 April 2014, up from losses of £9.2 million in the same period of 2013.

Hampshire-based Chemring, which specialises in sensors and countermeasures, said its revenue fell by 7% to £277.4 million. Its total order book reduced by 13% in the six-month period to £591.1 million.

Chairman Peter Hickson said: “The group has made important progress in the period, re-focusing its operations and strengthening the balance sheet to create greater flexibility to invest for growth. The divestment of the European munitions business was a key milestone for Chemring and concludes the disposal processes stemming from the 2013 strategic review.

“While end markets remain challenging and customer behaviour difficult to predict, we will continue to drive operational efficiencies. We are also pursuing growth opportunities, particularly in non-NATO and commercial markets.”

Chemring's group chief executive Mark Papworth left the company following the results announcement and has been replaced by Michael Flowers who has been with the company since 2006.

Earlier this year Chemring acquired 3D-Radar, a subsidiary of Curtiss-Wright Corporation, for £1.8 million. It disposed of its European munitions business in May for £134.5 million.