Shares in Chemring saw an increase this morning following the announcement of a new deal with a US-based company for the supply of miniature radars.
The four-year contract, valued at £26m, will commence production at the FTSE 250 firm’s Hampshire headquarters in October, as reported by .
By mid-morning, shares had risen by approximately three per cent. Through its subsidiary Roke, Chemring will supply Miniature Radar Altimeters (MRA) to a US Prime Contractor working directly with the government.
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MRAs are utilised by missile systems and unmanned air vehicles, capable of measuring altitude at high speeds over land and sea. "This agreement with a major US Prime Contractor is another success in Roke’s strategy to grow revenues from their portfolio of world-leading defence products and systems," said Mike Ord, Chemring’s chief executive.
He added: "It also demonstrates the critical role we play in multiple space and missiles programmes is not confined to our Energetics businesses. " "Roke continues to see growing interest in its range of defence capabilities and has a significant medium-term pipeline of opportunities valued at more than £300m."
Despite the defence industry profiting from rising geopolitical tension worldwide, Chemring shares have underperformed this year, falling 0.2 per cent since January. Shares took a hit in December despite the group’s order book reaching a record £1.04bn in 2024, as production and foreign exchange headwinds dented investor confidence.
Chemring, the defence company, is setting its sights on achieving £1bn in annual revenue by the end of the decade, as the global defence markets continue to show signs of robust growth.