Chemring business booms, sees more strong growth

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LONDON, Jan 22 (Reuters) - British military equipment maker Chemring Group Plc (CHG.L) posted a 57 percent rise in underlying annual profit on Tuesday and said 2008 should be another year of strong growth, underpinned by a record book.

"Record demand for our decoys continues to be driven principally by the threat from shoulder-launched missiles to the helicopters and transport aircraft used by the U.S., UK and other coalition forces in Iraq and Afghanistan," Chemring said.

Chemring, which also makes explosives and medium- and large-calibre ammunition, said continuing operations made a pretax profit of 49.8 million pounds ($97 million) in the year to end-October, on revenue up 36 percent to 255 million pounds.

The final dividend was set at 17.8 pence, making the total dividend 56 percent higher at 25 pence.

Chemring said its current order book stood at 401 million pounds, up 35 percent since its financial year end.

"We look forward to the 2008 financial year and are confident that it will be another year of strong performance," Chairman Ken Scobie said.

Chemring shares, which have risen sevenfold in the past five years, closed at 1,905 pence on Monday to value the business at 659 million pounds. The stock has outperformed other London-listed aerospace and defence companies .FTASX2710 by 14 percent over the past 12 months. (Reporting by Dan Lalor; editing by Rory Channing)