UK 20:06 Sunday, 4 October 2026
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Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.
With events in Iraq, Syria and Ukraine continuing to rumble on, you would have thought that a defence company would be an ideal investment – especially one with strong global market positions in pyrotechnics and countermeasures plus developing exposure in the growing sensors/electronics areas. Chemring (CHG) has been a volatile investment, however, and at the time of writing is once again below 200p a share having been at 285p as recent as March. I noted an opportunity in Chemring shares back in January and enjoyed the sharp rise, but now the shares are back to the multi-year low levels of last November.
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Comments
Papworth's Got A Brand New Bag - The Sack
I wondered if we’d see an article on CHG. I used to work for them, if only by accident. They went from one CEO, Price, who was all about expanding outwards without pausing to think about why, to another, Papworth, who was all about cost saving and retreating to a core function. He was put there to do just that, so his role there was always finite, but obviously he’s gone early on the results. Who knows what Flowers will do but they can’t really afford to have another internal shakeup or change of direction; it was thoroughly painful to be a part of.
It’s a difficult business to understand, inevitably at the mercies of defence spending, and many elements to it are still crap. That said, I did think Papworth and his new managerial appointments were taking the company in the right direction; namely to a more structured business and one a step removed from the boom & bust of making consumables that go bang in a war. It just could have been done better.
I don’t buy defence companies and was displeased to find myself working for one, so I’m out, but I suspect once it bottoms out it’s got potential for a strong recovery play within a year or so.