BRITISH defence firm Chemring a manufacturer of detectors of pyrotechnic, ammunition and improvised explosive devices, yesterday announced a 66 per cent rise in pre tax profits.
Reporting total pre-tax profits of £95.8m for the year, Chemring said its niche products – such as products that help fighter planes avoid missiles – would be unaffected by swingeing cuts in defence budgets.
“The board believes that the majority of our niche markets will be unaffected and our strategy for growth remains unchanged. The conflict in Afghanistan ensures pyrotechnics has priority funding,” according to chief executive David Price.
Chemring is also set to acquire US firm Allied Defense Group (ADG) in an all cash transaction amounting to £36m.
ADG generated revenue of $140m last year and has a strong presence in the Middle East.
The acquisition will also provide Chemring with “an internal customer for its propellants, explosives and fuses,” said Price. He said it was a “desirable purchase”. The deal is expected within 90 days.