BRITISH defence specialist Chemring is set to report bumper profits in its results next week, as rising geopolitical tension around the world prompts a surge in the government's defence spending.

Analysts have forecast the Hampshire-headquartered firm will report an adjusted operating profit in the range of £67m for the year.

Shares are up nearly 11 per cent in 2023 on consistently strong demand. Chemring reported a surge in orders in the first half of this year, as Western governments shell out on weapons amid the war in Ukraine and rising geopolitical tensions globally.

Chief executive Mick Ord said at the time he had witnessed a "fundamental change in the security landscape" over the last 18 months, as Chemring's order book reached a record £750m. Since the announcement, fresh conflict has broken out in the Middle East between Israel and Hamas.

Fellow defence companies BAE Systems and Lockheed Martin have reported bumper profits this year. BAE netted £1.23bn in its half-year results in August.

(c) 2023 City A.M., source Newspaper