Chemring Wins Strategically Important UK Missile Defence Contract
Why we think this is very good
This contract award is a significant positive for Chemring. The £251m, six-year framework contract with the UK Missile Defence Centre represents a substantial revenue opportunity, worth around 25% of the company's market cap. The contract is with a blue-chip government customer, providing multi-year revenue visibility and positioning Roke as a trusted partner in developing next-generation missile defence capabilities. There are no major risks or drawbacks identified, making this a very positive development for the company.
Key Points
- Roke wins £251m, six-year UK Missile Defence Centre contract
- Contract to see Roke lead UK industry collaborative effort on missile defence
- Contract positions Roke as trusted partner in UK missile defence capabilities
- Significant revenue opportunity worth around 25% of Chemring's market cap
Summary
Chemring has announced that its subsidiary Roke has won a £251m, six-year framework contract with the UK Ministry of Defence's Missile Defence Centre. The contract, known as STORM, will see Roke lead a UK industry collaborative effort to provide missile defence capabilities. The contract is a strategically important one for Chemring, positioning Roke as a trusted partner at the heart of the UK's missile defence ecosystem. Recent broker targets have been positive, with several 'Buy' recommendations and price targets suggesting further upside.