Chemical attacks raise stakes for defence contractor Chemring
Defence specialist Chemring on Thursday said it expects a boom in demand for its products following the use of chemical weapons in Syria and the UK.
The FTSE firm said the Douma attack in April and the use of a nerve agent on Yulia Skripal and her father has highlighted the need for its detection products.
Chief executive Michael Flowers said: “Chemical and biological warfare is something that in the Eighties and Nineties was not really on the agenda. That has changed. People are starting to talk more about the threat posed by chemical and biological warfare agents.” But Flowers believes it will be at least three years “before any money is committed”.
The defence equipment maker posted a 5% rise in first-half pre-tax profit to £14.8 million on revenues of £229.3 million. The shares rose 1% to 219.3p.
The company and its rivals are hoping to profit from a bounce in defence spending by US president Donald Trump, who has called for a bigger and stronger military.
The Senate passed a $716 billion defence policy bill this week.
