Chemring Group (LSE:CHG) held the line on its full-year guidance and upped its interim dividend 4% as it reported a record first-half order book of £1.3 billion despite a slowdown for its sensors division, partly blamed on the delayed UK Strategic Defence Review (SDR).
The provider of defence and security countermeasures, sensors and cyber intelligence solutions reported revenue of £234.3 million for the half-year to April 2025, up 5% on the previous year, as overall order intake rose 42% to £488 million.
Underlying operating profit increased 8% to £27.1 million, while statutory operating profit jumped 69% to £29.5 million.
Overall revenue growth was supported by 20.4% growth at its Countermeasures & Energetics division.
The Sensors & Information arm saw order intake fall to £70 million from £96 million a year ago, with revenue down 12% to £92.6 million, as largely expected.
The publication of the UK Ministry of Defence's SDR was delayed until yesterday and Chemring said that while it has "seen no evidence" of programmes for its Roke electronic warfare subsidiary either being lost or cancelled, but "the rate of new order placement has slowed and there has been an increase in project extensions".
However, overall, chief executive Michael Ord said the positive momentum from 2024 "has continued into this year", with the record order intake and an order book evidence of "robust demand and trading environment" that keeps expectations for the full year unchanged.
He said 85% of the expected 2025 revenue has already been delivered or was in the order book by the period end.
An interim dividend of 2.7p per share was declared, while £3.3 million was deployed under the company’s £40 million share buyback programme.