HAMPSHIRE defence group Chemring's pre-tax profits have risen by 13 per cent to £13.3m.

The company, which employs 800 people at its Whiteley HQ and sites in Portsmouth, Salisbury and Derby, specialises in making chaff to confuse missiles and stop them locking on to their targets.

The countermeasures business enjoyed a record year, with turnover up 23 per cent.

Chemring's US subsidiary Kilgore reported that its post-tax earnings doubled.

Ken Scobie, Chemring Group chairman, said: "Kilgore had an excellent year, demonstrating its singular ability as the volume producer of the industry. In the last two years Kilgore has delivered three and a half million flares to the US military and to export customers."

The only blot on the books was the under-performance of the group's marine electronics division.

Mr Scobie said: "The combined marine pyrotechnics and lights businesses performed well in the year, with the slightly weaker pyrotechnics performance offset by strong sales of lights.

"Major changes have now taken place in the marine division, including management restructuring, and a thorough review of its profitability, and investment is under way to enable the board to decide on the most profitable future strategy for the business."