Profits rise at defence firm Chemring as US spending grows

Ammunitions manufacturer Chemring Group has reported a five per cent rise in profits due to increased defence spending by the US government.

Underlying operating profits at the firm rose to £18.1m in the six months ending 30 April, which is a 5.2 per cent rise on the £17.2m raised a year earlier.

Read more: Chemring nabs ex-Royal Navy officer from BAE Systems to take over top job

Large contracts in the Middle East for ammunition have also previously fueled profit growth for the Hampshire-based firm, which specialises in making military gear such as anti-missile flares and landmine detection technology.

The company also said that the total amount of its current orders was £442m, falling from £478m the previous year.

Michael Flowers, chief executive of Chemring, said: “Market conditions and business performance in the first half of 2018 have continued to strengthen, with margins and earnings improving across the Group. We expect this trend to continue as the impact of significant increases to the US Defense budget start to flow through.”

Read more: Serious Fraud Office opens criminal probe into defence firm Chemring

The news comes several months after Chemring caught the headlines when the Serious Fraud Office launched a criminal investigation into the aerospace and defence giant in relation to two “historic” contracts at one of its UK-based subsidiaries.