Chemring is set to record its highest profit in about a decade, after the war in Ukraine prompted a flurry of defence spending.
The FTSE 250-listed company, whose results are out next week, is expected to have made £65 million in the financial year to October, according to estimates from Refinitiv, a provider of financial market data.
Chemring’s business has been boosted by a rise in Western governments’ defence spending following Russia’s invasion of Ukraine and heightened geopolitical tensions in the Asia-Pacific region.
Record profits: Chemring’s business has been boosted by a rise in Western governments’ defence spending following Russia’s invasion of Ukraine
The company, whose order book was at record levels earlier this year, makes materials and components for missile systems, explosives and propellants.
It announced a £50 million share buyback programme in August.
Chemring’s shares have risen by 11 per cent this year and it is now valued at more than £900 million. Fellow London-listed defence firms including BAE Systems have also seen profits soar.
