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Countermeasures maker boosted by US government demand

Key Points
  • Chemring Group saw particular strength in "countermeasures division".
  • US government made majority of purchase orders.
  • Expectation for year ended 31 October remain unchanged.
Raphye Alexius | Blend Images | Getty Images

U.K. military supplier says its sales have been swollen by strong demand from the U.S. government.

Chemring makes grenades, battlefield pyrotechnics, detonators, IED detection systems, bomb-disposal tools as well as missile and space-systems.

The firm employs around 2,700 people worldwide at sites in the United States, Norway, Australia and the United Kingdom.

In a trading update Tuesday, Chemring posted revenue of £156.7 million ($200 million) in the six months to the end of August, a 13.4 percent rise on the same period in 2016.

The division which focuses on technology designed to identify and repel military threat was described as "particularly strong", with orders totaling £56.6 million received.

"The majority of these orders were from the U.S. Government for a range of requirements," read the update.

Although revenues rose, the order book as of 31 August was £541.1 million, a fall of a round £15 million from the end of April. The company claimed however that recently placed orders, due to be delivered in 2018, gave it confidence for the near-term.

Correction: This story's headline has been updated to reflect that Chemring Group is a countermeasures manufacturing company.

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