Defence contractor Chemring (LON:CHG) swung back to profit during the six months ended 30th April, despite revenues being 8% lower than in the same period of the prior year. The company said that improved first-half revenue weighting had been key to the development, despite a negative impact from recent foreign exchange movements.
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Chief Executive Micheal Flowers said: “Market conditions and business performance in the first half of 2018 have continued to strengthen, with margins and earnings improving across the Group. We expect this trend to continue as the impact of significant increases to the US Defense budget start to flow through“. Management said their full-year expectations were unchanged despite the improved performance during the first half. Shares in Chemring were 220.50p at 13:30 BST, a 1.61% improvement over the open.