Defence group Chemring hit by military spending cuts
DEFENCE group Chemring says it is yet to see more demand for its equipment despite rising tensions around the world as annual profits were shot down after military spending cuts.
The FTSE 250 company has been offloading businesses such as its European munitions operations to relieve pressure on its finances and to focus on its defence technology.
Underlying pre-tax profit fell 41 per cent to £30.3million on revenue of £474.9million, down from £624.9million last year. Chief executive Michael Flowers said: “The global defence market remains subdued and US operational funding continues to reduce.
“There has been growth in some markets, notably the Middle East, but these regions are still modest in scale when compared with Nato defence spending.
“Current geopolitical tensions have led to claims that defence spending will increase. We are not yet witnessing any wholesale rise in demand.”
