At last, embattled defence group Chemring has a little ammunition to help stem its recent flow of bad news.
The group, whose shares have fallen 29 per cent over the last 12 months, said its order book at the end of July, at £665.9m, was 12.6 per cent higher than at April 30.
Chemring said the recent decline in sterling, particularly against the dollar, has helped to swell the value of its order book. The pound is still 12 per cent lower against the dollar than on the day of the EU membership referendum on June 23 and continues to trade at levels last seen in 1985.
Chemring said the weakness in the pound against the buck accounts for £50.5m of the growth in its order book.
However, a weak pound and a strong dollar also has a downside for the company: some of Chemring’s debt is denominated in dollars. Its net debt, at July 31, was £147m, up from £114.4m at the end of April. Just over £11m of that increase is due to the “translation of US dollar denominated debt”, the company said.
Currency moves aside, Chemring has made no further changes to full year expectations, having warned in June that annual results would be “slightly below” what the market was expecting at the time.
That warning in June followed a caution in March that the business was not meeting expectations and a profit warning in October last year.
Revenue in the three months to July 31 was £109.1m, Chemring said on Wednesday, up 20.2 per cent year-on-year.
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