Defence business Chemring’s (CHG) cybersecurity unit Roke is an underappreciated part of the business, but it may not go under the radar for too much longer. The company’s results for the year to 31 October revealed revenue from the division exceeded £100 million for the first time with order intake of £168 million, up 59% year-on-year.

Based on previous transactions in the cybersecurity space, which have valued companies at up to six times sales, Roke alone could account for a large part of Chemring’s £856 million market valuation. Chemring acquired Siemens’ UK defence electronics unit (then called Roke Manor Research) for £55 million in 2010. Since then, the company has increased its headcount and built up its expertise to incorporate the protection of networked systems, data analysis, artificial intelligence and connectivity. Annual revenue for the broader group was up 13% to £442.8 million with operating margins down just a touch at 14.5% from 14.6% a year earlier despite rising input costs and increased operating expenses at Roke. Order intake for the Countermeasures and Energetics arm – which sells products which protect against guided missiles and explosives – was up 40% to £356 million. Chemring also confirmed trading in the first weeks of its new financial year has been in line with expectations.

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