Chemring Group, a leading U.K. defense company, announced that its pretax profit for fiscal 2023 decreased due to higher costs. However, the company stated that its performance for the current year has been in line with the expectations of the board.
For the year ending October 31, pretax profit amounted to £44.1 million ($55.4 million), compared to £47.9 million in the previous year. This decline was partially attributed to a £18.5 million impairment of chemical detection assets.
Adjusted pretax profit, which excludes exceptional and one-off items, reached £67.9 million, up from £57.9 million.
The company experienced growth in revenue, with figures rising from £401 million to £472.6 million.
Chemring Group highlighted that 79% of the projected revenue for fiscal 2024 is already covered by the order book. As of October 31, the order book stood at £922 million, representing a significant increase from the previous year’s figure of £651 million. Out of this total, £403 million is expected to be recognized as revenue. The company expressed confidence in its ability to capitalize on various opportunities.
To reward shareholders, the board recommended a final dividend of 4.6 pence per share, resulting in a total dividend of 6.9 pence for the year, up from 5.7 pence in the previous year.
Chief Executive Michael Ord expressed optimism about the future, stating, “The outlook for global defence markets is increasingly robust, with continued growth expected over the next decade. This growing visibility gives us the confidence to continue to invest for the future, balancing near-term performance with longer-term growth and value creation.”
