Global aerospace and defence manufacturer Chemring is expecting profits to rise for the financial year ending 2020 despite a “challenging” trading environment.
The company, which has a site at Stevenson in Ayrshire, said in its latest trading update it anticipates annual adjusted operating profit to be at the top end of between £47m and £53m.
According to the group, order intake to 31 August was up four per cent on the same period last year and the company had an order book of £452m – up from £449m in October 2019.
Chemring said its growth was driven by a “strong performance” in the sensors and information sector, with order intake up 32% compared to the same period last year.
It also said performance across the countermeasures and energetics sector was progressing in line with the board’s expectations.
Delivery targets across all product lines within Chemring’s global countermeasures business are also being met, according to the company.
Chemring chief executive Michael Ord said: “This has been a busy period in which the resilience of the group has been demonstrated as we continue to make good progress despite the challenges presented by Covid.”
He added: “We have good momentum as we near the end of FY20 and move into FY21 and, despite the near-term uncertainty that Covid-19 presents, I remain confident that our leading technologies, deep long-term customer relationships and sole-source or market-leading positions mean Chemring’s long-term prospects remain strong.”
Chemring said all its facilities remained open and were operating in line with UK Government guidelines.