Military decoy flares maker Chemring Group PLC (LON:CHG) said it has bagged two significant contracts down under.
Its Australian subsidiary has won an “undefinitised contract action” worth up to US$60.4mln and a further contract contract award worth US$6.5mln to supply countermeasures to the Royal Australian Air Force, US Navy and Foreign Military Sales in support of the F-35 Joint Strike Fighter and other platforms.
This award follows a multi-year effort to establish Chemring Australia as a qualified supplier for F-35 countermeasures, the group said.
UK RNS today #2 -
Chemring - insurance recoveries earlier than hoped means underlying op profit split now 30/70% between H1 and H2 from 15/85%
Brewin Dolphin - IMS showed only small net inflow of £0.8bn but EPS down 8.3%. Making acquisition in RoI being financed by a placing
— Chris Bailey (@Financial_Orbit) May 10, 2019
Chemring, which has been slowly repairing its reputation in the City since a profit warning in late 2015, said full-year expectations for 2019 are unchanged but will be less second-half weighted than previously indicated, thanks to the company receiving an insurance pay-out sooner than expected.
Previously, the company had indicated the full-year earnings split would be 15%/85% in favour of the second half; it now expects the split will now be more in the area of 30%/70%.