Chemring hit by defence squeeze
DEFENCE group Chemring was hit by a 7.5 per cent fall in revenues in the three months from May to July after a spending slump from its main Nato customers.
Revenues fell in all four of its divisions
Sales dropped from £165.1million to £142.8million, in line with the board’s expectations, as the firm dealt with “ongoing deterioration” in defence spending from the US in particular. Orders fell 23 per cent to £701.1million.
Revenues fell in all four of its divisions, but countermeasures, which protects planes and ships against missile attack, took the hardest hit.
Broker Liberum Capital expected western intervention in Syria to cause increased demand for some of the firm’s aircraft-related products.