Austerity-hit government defence budgets around the world meant Chemring, maker of ejector seats and flares, saw revenues from its munitions business slide by a fifth in the first three months of this year.
The defence giant won a string of deals for its bomb-detection business, including a contract signed last month to supply counter-chemical terrorist attack equipment to the US Army. That helped revenues for the unit to rise 33% in the first quarter.
But munitions, where Chemring’s 40mm grenades and rocket motors bring in average annual sales of £228 million, saw first-quarter revenues fall 22% on the same time a year earlier.
Chemring said the munitions business “continues to be impacted by delays in the placing of major contracts and by the granting of export licences”. Revenues at the defence firm were £136.1 million against £132.4 million a year earlier.
In the face of a “general decline in current NATO defence spending”, Chemring, where Mark Papworth replaced David Price as chief executive last autumn, added that its order book stood at £756.7 million, slightly down on October’s £760.9 million.
