(Sharecast News) – Aerospace, defence and security tech group Chemring said it remains on track to hit forecasts this year, but only as long as the US Department of Defense signs off a £25m order.
The company said it is waiting for the US DoD to approve certain countermeasure deliveries, that have already been manufactured but haven’t yet been recognised on the top line.
“The US DoD is expected to grant approval subject to determination of the quality of raw material provided by a third-party supplier that is outside of the control of the group. The group is supporting all parties in resolving this matter,” Chemring said in a trading update on Tuesday.
If that gets green lit, then Chemring should hit its adjusted operating profit target for the year to 31 October of £65.2m to £68.2m, slightly up from £64m the previous year.
Aside from the US DoD work, the company said the full year is now fully covered by the order book and recent contract wins provide “excellent visibility” over the next two financial years.
Chief executive Michael Ord said: “The growth in order intake across both sectors demonstrates customer confidence in Chemring to develop and supply highly effective solutions, builds our order cover for FY24, and positions the group well for the future.”