Chemring Group (LSE:CHG) PLC shares dropped after the defence technology group announced a 19% increase in the interim dividend and kept its expectations for the full year unchanged.
The shares, which had risen by over a third since the start of the invasion of Ukraine, dropped 6.3% to 343.07p as the FTSE 250-listed company reported 8% growth in revenue to £220.4mln for the six months to end-April.
Adjusted profit before tax was up 18% to £33.1mln and the half-year dividend was upped to 1.9p.
Noting that 85% of expected second-half revenue is in the order book at the end of April 2022 or has been delivered, the board's expectations for 2022 were said to be unchanged.
Cost inflation from utility bills, discretionary investment in sensors business Roke and “adverse US order timing” are all expected to combine to offset current currency tailwinds and an expected improved first-half weighting in 2022, it said.
Chief executive Michael Ord said: “Current geo-political uncertainty, brought about by Russia's invasion of Ukraine, has highlighted the need for increased defence expenditure, particularly amongst European members of NATO. More broadly it has highlighted the need for countries to re-equip and modernise their defence capabilities to meet the threat of peer-on-peer conflict.”