Chemring expects a tough market in 2013
Military equipment maker’s 2012 profit down 42 percent
By CFOWorld.co.uk staff | CFO UK | Published 11:38, 24 January 13
UK-listed military equipment manufacturer Chemring has posted a 42 percent dip in its 2012 profit.
In a statement on Thursday, the company, which endured a difficult year marred by profit warnings, said 2013 would be a tough year as rising expectations for defence cuts in the UK and US was likely to sap market confidence.
In figurative terms, Chemring’s pre-tax profit dipped to £70.1 million in the year ended 31 October, from £120.2 million a year ago. Corporate revenue rose 2 percent to £740.3 million, the company said. It has reduced its final dividend to 4.2 pence per share.
Last year, Chemring issued two profit warnings between August and November and ousted chief executive David Price. He has since been replaced by Mark Papworth who has vowed to simplify Chemring’s management structure and prioritise cash and cost management.
Earlier this month Steve Bowers, previously a finance director at Umeco, was appointed as group FD at Chemring. He replaced interim CFO Nigel Young.
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