Chemring boss: Pandemic has highlighted ‘risk’ of biological security threats
The coronavirus pandemic has educated the world about the potential threat that biological warfare could pose in the future, Chemring’s chief executive said this morning.
Speaking to City A.M., Michael Ord said that biological security was set to become far more important as a result of this year’s unparalleled upheavals.
“The whole area of biosecurity is going to be increasingly important now that we’ve seen the crippling effect of the pandemic”, he said.
“The risk of a biological event like a pandemic was on people’s registers, but for many it was a black swan event where people thought there was such a low probability of it happening.
“But the education that we’ve had over the last 12 months has demonstrated the possibility that of that risk increasing in the future.”
Ord was speaking as Chemring posted a 31 per cent increase in profit before tax as the defence firm beat expectations despite the pandemic.
The company, which provides high-tech equipment for weapons systems, has a division in the US which has developed cameras capable of identifying biological threats.
Ord added that the pandemic would add further uncertainty to a world increasingly beset by security concerns.
In this context, he welcomed the UK’s recent £16.5bn boost in defence spending, and said that Chemring would be well positioned to take advantage of the bump in expenditure.
The Romsey-based firm also develops cyber, artificial intelligence, and electronic warfare equipment – three areas highlighted in the new spending plans.
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And in the US, from where Chemring derives 54 per cent of its revenue, lawmakers have recently authorised a new $740bn defence budget.
“We’re well positioned to benefit from the rise in spending on both sides of the Atlantic. The world is becoming a more volatile and uncertain place, with governments facing increasing challenges and threats across the board”, he said.
Chemring profit jumps as firm beats expectations
The FTSE 250 firm said that an increase in orders and revenue at tech arm Roke, including a first US government order for its Resolve technology, had boosted the company.
Profit at the Romsey-based firm rose to £51.7m over the last financial year, up a third from the £39m it booked the year before.
Chemring also saw its revenue jump to £402.5m, 20 per cent higher than the £335m it recorded in 2019.
It added that it had made good progress on securing new orders for its missile protection systems, including a $107m deal to supply the F-35 fighter jet.
Chief executive Michael Ord said: “Our focus in recent years has been on putting in place the foundations on which to build a stronger, higher quality business.
“The resilience of the Group in response to the coronavirus pandemic is a consequence of the dedication and commitment of all our people and clearly demonstrates the significant progress that we have made.
“We set ourselves demanding goals and our teams across the group have risen to those challenges, delivering a financial performance that was ahead of the board’s expectations.”
Despite the coronavirus pandemic, Chemring managed to keep all of its businesses open and running through the year’s lockdowns.
The firm added that it was sticking to its guidance for the new financial year, with approximately 78 per cent of revenue already covered by its order book.