Chemring Group - picking up new contracts with a certain flare
Sensors and information and countermeasures and energetics – those are the two strategic product segments of the high technology products group Chemring (LON:CHG).
It is a supplier of those products and services to the aerospace, defence and security markets.
At the same time as recently announcing
that it had picked up a £25.8m naval countermeasures contract, as well as a £5.5m air countermeasures contract, the group stated that its year to end October had closed robustly.
The finals, which are due on 15 December, are likely to be at the top end of market expectations. Its closing order book at £476m, compared to £449m last year, gives confidence and visibility. Even net debt has been reduced from £75.7m to £48m at the year end.
I remain a big fan of this group and rate its shares at 265p, after 285p at the end of October, as a good hold going into 2021.
(Profile 20.06.19 @ 177p set a Target Price of 300p)