Chemring H1 Profit Rises, FY View Unchanged; To Buy Cubica Group

Chemring Group PLC (CHG.L), a provider of technology products and services, reported Thursday that its first-half profit before tax was 24.3 million pounds, up from 19 million pounds last year.

Earnings per share were 7.4 pence, up from 5.6 pence a year ago.

Underlying profit before tax was 27.2 million pounds, compared to 24.2 million pounds a year ago. Underlying basic earnings per share were 8.3 pence, compared to 6.9 pence a year ago.

Revenue was 198.5 million pounds, up from 191 million pounds last year.

Further, the Board has declared an interim dividend in respect of the 2021 financial year of 1.6 pence per ordinary share which will be paid on September 10 to shareholders on the register on August 20.

Looking ahead for the year 2021, the Board’s expectations are unchanged. Approximately 92 percent of expected H2 revenue is in the order book as at 30 April 2021. Chemring’s long-term prospects remain strong.

Separately, the company announced the acquisition of Cubica Group, comprising Cubica Technology Limited and Q6 Holdings Limited. The financial terms of the deal were not disclosed.

Woking, Surrey -based Cubica is a research and development company specialising in artificial intelligence, machine learning, data fusion and autonomy.

Q6 is the majority shareholder of Vigil AI Limited, which has technology providing state-of-the-art solutions to enable online platforms to detect imagery relating to child sexual exploitation globally.

The consideration will be satisfied by a payment in cash on completion, funded from Chemring’s existing bank facilities, and a deferred consideration payable in Chemring 1p ordinary shares in two tranches on the second and third anniversary of completion.

Following the completion of the acquisition, the current owners of Cubica and Q6 will remain in employment with Chemring.

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