22 Jun 10. Chemring announce interim figures for six months to 30 APRIL 2010.
FINANCIAL HIGHLIGHTS
* Revenue from continuing operations up 10% to £255.9m (2009: £233.5m)
* Order book up 16% to £651m (October 2009: £559 m)
* Order book today at new record high of £751m, up 25% since June 2009
* Underlying operating profit* up 13% to £52.3m (2009: £46.1m)
* Underlying profit before tax* up 7% to £42.3m (2009: £39.5m)
* Underlying earnings per share* up 10% at 89p (2009: 81p)
* Profit before tax £25.3m (2009: £29.9m)
* Basic earnings per share 52p (2009: 61p)
* Interim dividend per ordinary share up 21% at 17p (2009: 14p)
DIVISIONAL HIGHLIGHTS
COUNTERMEASURES
* Steady growth in revenue, up 7% to £91.9m (2009: £86.2m)
* Strong performance from US businesses, revenue up 27% at Alloy Surfaces and up 23% at Kilgore
* Order book up 20% to £279m from £232m at last year end
* Order book at Kilgore up 121% compared to last year
PYROTECHNICS
* Revenue at similar level to 2009
* Increased sales of 40mm pyrotechnic rounds to US Army
* Some slippage of European orders into second half
* Encouraging contribution from new acquired Hi-Shear business
EOD
* Excellent first half performance from NIITEK
* Divisional revenues up 92% to £41.3m (2009: £21.5m)
* New $106m US Army order for HMDS gives NIITEK record order book of $134m
MUNITIONS
* Subdued first half revenue of £54.4m (2009: £57.2m)
* Operating profit up 27% to £10.9m (2009: £8.6m)
* Hi-Shear awarded $10m contract for Patriot sub-system
* New US primary explosives facility completed and undergoing certification
RESULTS FOR THE HALF YEAR TO 30 APRIL 2010
2010 £m 2009 £m
Revenue
255.9 233.5
Underlying operating profit*
52.3 46.1
Net finance expense
(10.0) (6.6)
Underlying profit before tax*
42.3 39.5
Profit before tax
25.3 29.9
Underlying earnings per share*
89p 81p
Basic earnings per share
52p 61p
Dividend per ordinary share
17p 14p
* See Note 2 below
Ken Scobie, Chemring Group Chairman, commented:
“The first six months of this financial year demonstrated the growing strength and quality of the Group’s earnings, with revenue up 10% to £255.9m (2009: £233.5m) and underlying profit before tax* up 7% to £42.3m (2009: £39.5m). Underlying earnings per share* increased by 10% to 89p (2009: 81p). Our order book grew over the period by a further 16% to £651m (October 2009: £559m). As a result, we expect to see a stronger trading performance during the second half of the year and the Group remains on course to meet our full year expectations. In recent years, your Group has powered ahead through organic growth and a focused acquisition policy, concentrating on its recognised areas of expertise, many in niche markets. We have balanced this growth with a sound financial basis of strong cash flow, conservative gearing and a long term debt profile. The Group has also been highly responsive to the requirements of shareholders in terms of earnings and dividend growth. This business strategy will continue to serve us well in the future. In spite of many commentators’ reservations about the immediate future for the defence industry, the Group’s order book has reached record levels across all our divisions, and the Board believes that we have the products, the services and the dynamism to secure continuing success both in the second six months of this year and in the future.”

24 Jun 10. On 19 January 2010, Chemring Group PLC announced that it had entered into a conditional agreement to acquire the entire issued stock capital of The Allied Defense Group, Inc., a US public company traded on the NYSE AMEX, for a cash consideration of $7.25 per share equating to $59m (£40m). On the same day as Chemring’s announcement, ADG received a subpoena from the US Department of Justice requesting that ADG produce documents relating to its dealings with foreign governments. ADG also became aware that day that an emp