We know a couple of investors who once scratched their heads about the Chemring Group Plc. 2011 annual report (reporting date 31 October) and then decided to set a reminder alert for the next time when the general economic environment will show some signs of weakness. This should make sure that they do not miss out when companies start to go for some sort of Chemring’s “Weak-but-Strong” game again. Now, already with the publication of the 2017 and 2018 annual reports we could hear a soft chiming of this reminder alert. But – promised – we will see some louder ringing of the bells after the 2019 results are disclosed.
But one by one: what was the problem with the Chemring 2011 report? The UK-technology company that focuses on the aerospace and defence sector commented in its report about a worsening business environment. In particular the government spending cuts in Europe and the USA seemed to be a real challenge for the company as we could read in different parts of the report. Consequently, the company reacts by downward adjusting the targets for its management bonus plan.
