By Chemring Group, a leading U.K. defense company, has announced that its adjusted operating profit for the fiscal year is anticipated to surpass market expectations. Furthermore, the company’s long-term growth outlook remains robust.
Explosive hazard detection, one of Chemring’s key businesses, will be treated as a discounted operation in 2023. As a result, the company will record a non-cash impairment of goodwill associated with its 2009 acquisition and other assets, amounting to £31 million ($37.9 million).
Following a strategic review of its U.S. Sensors business, Chemring Group has identified a promising opportunity in the biological detection and security markets. By focusing on these areas, the company aims to maintain strong margins and achieve significant growth.
Notably, Chemring Nobel, the company’s Norway-based subsidiary, has secured orders worth over £40 million in October. Additionally, the U.S.-based subsidiary has won a substantial $46 million order.
To support its expansion plans, Chemring anticipates investing approximately £120 million to increase its capacity. This investment is projected to generate around £85 million in increased revenue and deliver an additional operating profit of approximately £21 million over the next three years.
Analyst forecasts indicate that the company’s adjusted operating profit for the year ending on October 31st is expected to reach £67 million.
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