Shares in Chemring saw an increase this morning following the announcement of a new deal with a US-based company for the supply of miniature radars.

The four-year contract, valued at £26m, will commence production at the FTSE 250 firm’s Hampshire headquarters in October, as reported by City AM.

By mid-morning, shares had risen by approximately three per cent. Through its subsidiary Roke, Chemring will supply Miniature Radar Altimeters (MRA) to a US Prime Contractor working directly with the government.

MRAs are utilised by missile systems and unmanned air vehicles, capable of measuring altitude at high speeds over land and sea. “This agreement with a major US Prime Contractor is another success in Roke’s strategy to grow revenues from their portfolio of world-leading defence products and systems,” said Mike Ord, Chemring’s chief executive.

He added: “It also demonstrates the critical role we play in multiple space and missiles programmes is not confined to our Energetics businesses. ” “Roke continues to see growing interest in its range of defence capabilities and has a significant medium-term pipeline of opportunities valued at more than £300m.”

Despite the defence industry profiting from rising geopolitical tension worldwide, Chemring shares have underperformed this year, falling 0.2 per cent since January. Shares took a hit in December despite the group’s order book reaching a record £1.04bn in 2024, as production and foreign exchange headwinds dented investor confidence.

Chemring, the defence company, is setting its sights on achieving £1bn in annual revenue by the end of the decade, as the global defence markets continue to show signs of robust growth.

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