Current defence spending continues to be driven by the need to replace obsolete warship classes, both in terms of surface and submarine fleets, alongside US pressure for NATO allies to increase defence spending.
In November 2020, the UK government announced an additional £16.5 billion in military spending over the next four years, representing the largest increase in real terms since the end
of the Cold War.
Notwithstanding the coronavirus pandemic and contraction in economic output during 2020, global defence-spending has remained resilient with growth matching the higher levels achieved in 2019.
CSC is the leading supplier of high-pressure gas storage systems to NATO member state navies and has long-term contracts to supply bespoke products and services for conventional and nuclear submarine and surface ship programmes in the UK and overseas.
Although the phasing of defence project milestones and contract revenues can fluctuate significantly between and within financial years, there is good medium and long-term visibility of vessel construction programmes and planned defence expenditure from navies and their prime contractors.
CSC is the principal provider of inspection and testing services to the UK MoD for through-life cylinder performance and safety management on various classes of nuclear submarine.
PMC secured its first orders for defence related components in FY21 and expects to increase its defence order book further in FY22 in collaboration with CSC.