Update on Countermeasure Deliveries

Chemring Group PLC

17 October 2023

 

FOR IMMEDIATE RELEASE                                                                                    

17 OCTOBER 2023

CHEMRING GROUP PLC

("Chemring", the "Group" or the "Company")

UPDATE ON COUNTERMEASURE DELIVERIES

On 12 September 2023 the Group issued a trading update in which it noted that achieving current full year expectations was subject to US Department of Defense approval of certain countermeasure deliveries, representing c.£25m of revenue, that had already been manufactured and would be recognised once approval had been received.

The delay in approval concerned the quality of raw material provided by a third-party supplier that was outside of the control of the Group.

The Group is pleased to report that the majority of the necessary approvals have now been received and associated deliveries can now be made. Whilst the revenue and profit associated with these deliveries can subsequently be recognised, the delay in shipment may leave insufficient time for the cash to be received from the customer prior to 31 October 2023 and as such these cash receipts may fall into early FY24.

The outturn for the year ending 31 October 2023 remains in line with the Board's and current analyst expectations*.

-ENDS-

*The Group believes the consensus of analyst forecasts for adjusted operating profit for the year ended 31 October 2023 is £66.2m.

For further information:

Rupert Pittman           Group Director of Corporate Affairs,                        01794 463401

                                       Chemring Group PLC             

James McFarlane        MHP Communications                                                020 3128 8100

Ollie Hoare

Cautionary statement

This announcement contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Chemring's plans and objectives, to differ materially from those expressed or implied in the forward-looking statements. There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are: increased competition, the loss of or damage to one or more key customer relationships, changes to customer ordering patterns, delays in obtaining customer approvals for engineering or price level changes, the failure of one or more key suppliers, the outcome of business or industry restructuring, the outcome of any litigation, changes in economic conditions, currency fluctuations, changes in interest and tax rates, changes in raw material or energy market prices, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects. Chemring undertakes no obligation to revise or update any forward-looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save as required by law and regulations.

Notes to editors

·   Chemring is a FTSE-250 listed global business that specialises in the manufacture of high technology products and the provision of services to the aerospace, defence and security markets

·   Employing approximately 2,600 people worldwide, and with production facilities in four countries, Chemring meets the needs of customers in more than fifty countries

·   Chemring is organised under two strategic product segments: Sensors & Information and Countermeasures & Energetics

·   Chemring has a diverse portfolio of products that deliver high reliability solutions to protect people, platforms, missions and information against constantly changing threats

·   Operating in niche markets and with strong investment in research and development ("R&D"), Chemring has the agility to rapidly react to urgent customer needs

www.chemring.co.uk 

 

END