StockMarketWire.com - Chemring said all of its businesses remained open, and the defence company conceded the duration and impact of Covid-19 across its home markets was at this stage unknown.

In the US, the UK and Norway, Chemring's operations had been designated as critical to the defence and national security industrial base, and in Australia the risk of business interruption was considered 'to be low,' the company said.

Given the uncertainty surrounding the length of the Covid-19 pandemic, the company said had taken various actions to protect profitability and to conserve cash.

'Operational expenditure has been reduced and all discretionary spending is tightly controlled as we seek to ensure the Group is well placed to navigate the current challenges,' Chemring said. 'The already established enhanced focus on working capital management, in particular the reduction of intra-period net debt volatility, is proving beneficial and the group is focusing on ensuring working capital disciplines are maintained in these challenging times,' it added.

The company reiterated a 'strong' order book with order cover for the 2020 financial year of almost 90% as disclosed in its trading update on 4 March 2020.

Since that announcement order placement had continued including the recent receipt of a $17m order to supply countermeasures for the F-35 joint strike fighter programme, with work under this contract to be carried out at its facilities in Tennessee and Australia, Chemring said.


At 8:55am: [LON:CHG] Chemring Group PLC share price was +4.75p at 207.75p



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