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Defence contractor group Chemring swung to an annual profit on slightly better-than-expected performance, led by 'strong' sensors & information sector performance.
For the year ended 31 October, the company reported a pre-tax profit of £26.7m, compared with a loss of £22m on-year, and revenue rose 12.7% to £335.2m.
The return to profit was driven by 'strong performance in its sensors & information segment, as deliveries commenced on the HMDS IDIQ contract and Roke enjoyed a strong year,' the defence contractor said.
Revenue for sensors & information increased by 51% to £131.9m.
'Overall performance slightly ahead of our initial expectations, reflecting strong Sensors & Information sector performance,' it added.
The order book as of 31 October stood at £449m, of which £287m was currently expected to be recognised as revenue in 2020.
The company declared a final dividend of 2.4p per ordinary share, taking the total dividend to 3.6p a share for the year, up 9%.
Trading since the start of the current financial year had been in line with expectations across all businesses and the board's expectations for the group's 2020 performance remained unchanged, Chemring said.