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Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.

While companies and their investors often look at underlying figures to get a sense of the health of the business, it's important to still consider at one-off items
Thursday 25 Jan 2018 Author: David Stevenson

Chemring’s (CHG) reported 30% increase in underlying pre-tax profit to £44.1m may sound like great news.

However, one-off items or exceptionals take £40.1m off the figure or 90.9% of the total.

This means that at a statutory level, pre-tax profit slumped by half, from £8m in 2016 to £4m last year.

The one-off items include acquisition and disposal costs as well as business restructuring.

One cost that is likely to recur for the current financial year is the write-down of patents and licenses which came in at £15m for 2017 and £14.8m in 2016.

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