Aerospace and defence contractor Chemring Group (LSE:CHG) increased its revenues by 8% to £223.4 year on year in the first half of 2024, but operating profit suffered a 24% decline to £17.5 million.
Margins were impacted by “operational challenges” at Chemring’s Tennessee Countermeasures business, where production was disrupted due to adverse weather conditions and delays in the development of the site’s automated facility.
Order intake in the first half reached £344.5 million, a 2% increase from the previous year, contributing to a record order book of £1.04 billion, marking the highest order book in Chemring's history.
The interim dividend per share was increased by 13% to 2.6p. Chemring has also deployed £28 million in a £50 million share buyback programme announced in August 2023.
Net debt rose to £75.3 million, largely due to strategic investments in capital expenditure and ongoing share buybacks.
Chief executive Michael Ord stated: "The momentum seen in 2023 has continued with another period of record order intake and an order book of over £1bn, the highest in Chemring's history.
“This strong order intake across both sectors has further increased our order cover for the second half of 2024 to 93% and the Board's expectations for the full year are unchanged."
Chemring aims to increase its annual revenue to approximately £1 billion by 2030.