Defence contractor Chemring reduced profit expectations for the financial year ended October 31st 2012 following delays and technical problems in a number of contracts.
In an update on current trading Chemring said a contract for the supply of vehicle based mortar systems for a Middle Eastern customer was experiencing delays in the granting of export licences for a limited number of parts. This delay the group believes is unlikely to be resolved in the near term and will continue into its new financial year.
Meanwhile, the group which makes pyrotechnics, explosives, munitions and countermeasures, said the receipt of a multi-year contract for the supply of aircraft countermeasures to a customer in the Middle East is now expected to be placed in its new financial year rather than the current.
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Furthermore technical problems on the development of a countermeasure have resulted in the product not being accepted by the customer until further acceptance tests have successfully taken place, it explained.
As a result of these three issues, the Chemring has reduced its expectations for its earnings per share for the financial year ended October 31st 2012 by 13p.
Chemring said it would provide a further update on trading.
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