Defence cuts hit Chemring

City A.M. Reporter
MILITARY equipment maker Chemring yesterday warned that its results for the year would likely be at the lower end of its expectations as it restructures its business to cope with the uncertainty around defence budget cuts in the US.

Chemring had in January said it expected difficult market conditions to persist in 2013.

The firm posted a pre-tax loss of £8.8m for the six months to the end of April, on revenues 10.8 per cent lower at £297.4m.

Chief executive Mark Papworth said yesterday he expects the firm to endure “a pretty lean next few years”. Shares nonetheless closed up 0.34 per cent yesterday.