DEFENCE firm Chemring is hoping to pull its performance up in the second half of this year, after blaming prolonged negotiations and delays in the Middle East for a poor showing in the six months to 30 April.
The group posted a £15.1m loss in the first half, compared with a £5.1m pre-tax profit in the same period of last year. Revenue also fell, from £208.8m to £161.7m, however the dividend was flat at 2.4p per share.
Chemring acknowledged the “significant reduction” in profit during the six months, and said it arose out of delays in order receipts and customer acceptance.
However, the company said its full year expectations were unchanged.
Group boss Michael Flowers said the receipt of orders exceeding £50m since the end of the first half, as well as “further significant orders expected to be won” and certain operational issues being resolved, would give rise to a strong second half performance.
“We are taking the necessary steps to enable delivery of these orders to commence in the current financial year,” he said.
“We are making good strategic and operational progress, and look forward with increasing optimism to the longer-term potential of the group being delivered.”
Shares in Chemring closed trading yesterday up by 3.65 per cent.