Sales surge for British arms maker amid Russian threat

SALES at British arms maker Chemring have boomed as countries buy antimissile flares amid a growing threat from Russia. Vladimir Putin’s invasion of Ukraine marks the end of the postcold war “rules-based international order, and is likely to have a long-term catalytic effect on defence and security spend as countries look to deter aggression and protect their international interests”, the company said.

“Chemring has the opportunity to benefit from elements of the ensuing demand,” it added.

Sales for the first half of the year rose 11pc to £220m, while pre-tax profits gained 22pc to £33.1m.

Shares in the FTSE 250-listed company dropped after it did not upgrade forecasts for the full year, yet remain up by a third since the war in Ukraine. It comes as more countries acquire American F-35 fighter jets for which Chemring provides anti-missile flares.

Chemring said plans by Canada, Finland and Germany to buy the fifth generation aircraft, made by a group of companies led by Lockheed Martin, will help to further boost its sales.

It also pointed to countries such as Germany, which is among seven EU countries to have committed to spending an additional $130bn (£104bn) on defence in coming years, it estimates.

Chemring, however, cautioned that some of the spending announcements may take time to reach its bottom line. “Whilst the outlook for the global defence market is increasingly positive, with strong growth predicted over the next decade, the customary time lag between announcement and budget increases translating into new orders can be expected,” it said.

Separately, industrial conglomerate Melrose, which owns aerospace company GKN, said it would buy £500m of its own shares, which it believes to be undervalued. It sent shares up 9pc.

The move comes after the company cashed in on the return to the office earlier this week as it sold its Ergotron business, which makes equipment such as desks, for $650m.