Chemring shares pulled up by Husky order

Pyrotechnics and military counter-measures specialist Chemring started Tuesday with a bang after announcing two new orders, one big and one small.

Its Chemring Countermeasures subsidiary has been awarded a five year agreement with the UK Ministry of Defence, worth an initial £21m, to supply infra-red and radar frequency decoy flares.

In the US, its Non-Intrusive Inspection Technology (NITEK) division has been awarded a contract for the ground penetrating radar, Husky mounted detection system. The contract ceiling is $579m with an initial order of $161m.

Try 6 free issues of MoneyWeek today

Get unparalleled financial insight, analysis and expert opinion you can profit from.

Start your trial

Sign up for MoneyWeek’s free twice-daily newsletter.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Join more than 165,000 subscribers and keep yourself informed with latest financial news, insights and expert analysis to help you understand what really matters when it comes to your finances.

Sign up

Chemring's Chief Executive, Dr David Price, said he was "delighted" with the order and added the detection system "continues to contribute to the safety of US and coalition forces".

Chemring's shares had jumped 16% on the news by 08:37, although the company has had a fraught 12 months, with its stock still down 43.5% since last May.

BS