Chemring Group (LSE:CHG) PLC said trading for the year to 31 October 2022 is expected to be in line with its forecasts despite the challenging macro-economic environment.
Expected full-year 2022 revenues are fully covered by the order book with the company noting that at 30 September, the order book was £678mln, up from £488mln at the end of April this year.
Some of the increase (£40mln) is attributable to FX translation arising from the stronger US dollar.
Order cover for full-year 2023 is building, the company said, with countermeasures and energetics having 93% order cover of expected revenue and the shorter cycle sensors and information sector having 60% cover.
Activity at Roke has remained extremely buoyant with order intake in the year to date at £156mlm, up 75% on last year, and as a result the group expects the business to achieve another record year in full-year 2022 with revenue exceeding £100mln for the first time.
In the countermeasures & energetics business the company highlighted a number of contract wins building on its existing order book which will provide strong manufacturing demand throughout 2023 and beyond.
“These significant order wins and growth in order intake across both sectors demonstrates customer confidence in Chemring to develop and supply highly effective solutions and builds on our order cover for full-year 2023, positioning the group well for the future,” Chemring said.
The balance sheet remains robust, with net debt throughout the period at less than 0.5x EBITDA , the company said, adding increasing interest rates are not expected to have a material impact on the group.