David Price, chief executive of Chemring, on Tuesday boarded a resilient tone about the company's future prospects while revealing the company’s full-year results.

He unveiled that Chemring's niche products will protect the company from the destructive effects generated as a result of defence spending cuts by the American and British governments.

Chemring's revenues reportedly rose to £503.9m in the year to October 31, 2009, with pre-tax profits gaining 66% to £95.8m. It is cited that the figures were propelled by a number of acquisitions last year, but revenues still rose 29pc excluding purchases.

In addition, he revealed that the company has planned to acquire US Company, The Allied Defence Group for $59m (£36m).

Mr. Price said the deal would "significantly enhance" Chemring's ammunition-related business.

The company is expected to posses around £60m available to spend on bolt-on acquisitions and Mr Price has indicated it is fully prepared to summon on shareholders to provide more if a major opportunity arose.

Although, Chemring has won many battles over the past 10 years, some speculate that it could face a defeat.

FFT claims that the rises in military expenditure in Iraq and Afghanistan have assisted the company grow rapidly, but one can’t ignore a triggering fear that it could face a struggling situation when the curtain on those conflicts comes down.