REG - Chemring Group PLC - £278m Contract Wins

ChemringAnnouncement

04/11/2024 07:00

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RNS Number : 7106K  Chemring Group PLC  04 November 2024

FOR IMMEDIATE RELEASE                                                                                          4 NOVEMBER 2024

 

CHEMRING GROUP PLC ("Chemring", the "Group" or the "Company")

 

£278M CONTRACT WINS

 

Chemring is pleased to announce that its Norwegian subsidiary, Chemring Nobel,
has signed a twelve-year framework agreement with Diehl Defence GmbH & Co.
KG ("Diehl Defence") for the supply of MCX energetic material. Under this
framework agreement Chemring Nobel also signed an initial purchase order
valued at €231m; deliveries under this contract will be over a five-year
period commencing in late 2026. In 2023, Diehl Defence and Nammo AS created an
industrial working group to supply the German Government with 155mm munitions
for the German Armed Forces and their allies and in July 2024 they received
their initial delivery order.  Under this order, production of 155mm
munitions will use Nammo's munitions technology for which Chemring Nobel is
the only qualified supplier of MCX material.

 

Chemring is also pleased to announce that its US subsidiary, Chemring
Energetic Devices ("CED"), has received an order valued at $106m for the
delivery of critical components for use in an undisclosed US missile
programme. Deliveries under this contract will be over a five-year period
commencing in 2026.

 

Further to the announcement on 17 October 2024, Group adjusted operating
profit for the year ended 31 October 2024 is expected to be in-line with
consensus expectations of £70.9m.

 

Michael Ord, Chief Executive of Chemring, commented:

"These significant contract wins illustrate the deep long-term relationships
that we have built with our customers.  It is further evidence of the
sustained and growing demand for our products and supports our investment
decisions to increase the capacity of our three energetics businesses, and
reinforces Chemring's position as a key supplier to NATO."

 

ENDS

 

 

For further information:

Rupert Pittman           Group Director of Corporate Affairs,
             01794 463401

                                       Chemring Group
PLC

 

James McFarlane        MHP
Group
                        07584 142665

Ollie Hoare
 
         07817 458804

 

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 FTSE250 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.com (http://www.chemring.com.)

 

 

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