REG - Chemring Group PLC - Interim Results
03/06/2025 07:00
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RNS Number : 1076L Chemring Group PLC 03 June 2025
3 JUNE 2025
CHEMRING GROUP PLC
("Chemring" or "the Group" or "the Company")
INTERIM RESULTS FOR THE SIX MONTHS TO 30 APRIL 2025
Record order book, full year expectations unchanged, strong long-term
prospects
As reported At H1 2024 exchange rates
H1 2025 Change H1 2025 Change H1 2024
Continuing operations
Order book (£m) 1,303.8 +25% 1,327.9 +28% 1,040.6
Order intake (£m) 488.0 +42% 496.6 +44% 344.5
Revenue (£m) 234.3 +5% 236.0 +6% 223.4
Underlying EBITDA(*)(£m) 39.8 +12% 40.4 +14% 35.5
Underlying operating profit(*) (£m) 27.1 +8% 27.5 +10% 25.0
Underlying profit before tax(*) (£m) 24.1 +6% 24.6 +8% 22.7
Underlying diluted earnings per share(*) (pence) 6.8 +3% 7.0 +6% 6.6
Statutory operating profit (£m) 29.5 +69% 29.9 +71% 17.5
Interim dividend per share (pence) 2.7 +4% 2.6
Net debt at 30 April (£m) 93.3 +24% 93.6 +24% 75.3
Key highlights
· Record H1 order intake of £488m and order book of £1,304m, the highest
in Chemring's history, providing excellent medium-term revenue coverage
· H1 2025 was in line with the Board's expectations:
- Revenue growth of 5%, driven by strong performance within Countermeasures
& Energetics, up 20.4%
- Underlying operating profit margin improving to 11.6% (H1 2024: 11.2%)
· Good progress made on organic growth projects to date, with £46.1m of
capex spent in total during the period
· Net debt was £93.3m (H1 2024: £75.3m), with the increase as expected
given the investment in growth capex. Net debt to underlying EBITDA of 0.95
times (H1 2024: 0.85 times)
· Interim dividend per share of 2.7p, up 4% (H1 2024: 2.6p)
· £3.3m deployed into the £40m share buyback programme announced on 26
February 2025
· The Board's expectations for 2025 are unchanged, with a similar H2
weighting of operating profit to last year (as previously guided).
Approximately 85% (H1 2024: 96%) of expected 2025 revenue was delivered or in
the order book at 30 April 2025
· The Group's longer-term growth prospects are strong, underpinned by
robust customer demand for our market-leading products and services, high
barriers to entry across our market segments, and a high quality pipeline of
organic and inorganic growth opportunities
Michael Ord, Chemring Group Chief Executive, commented:
"Our 2024 momentum has continued into this year with another period of record
order intake and an order book of over £1.3bn, increasing 2025 order cover to
85%. With this robust demand and trading environment the Board's expectations
for the full year are unchanged.
"Operational and trading performance has been in line with our expectations,
with improving returns for our shareholders underpinned by solid cash
conversion. Both sectors benefitted from the receipt of several significant
orders in the period, evidencing confidence in our market leading products and
services.
"With growing geopolitical uncertainty resulting in increased defence
expenditure, particularly across NATO, the Group is well positioned, with a
strong and sustainable platform to increase revenue to £1bn by 2030."
Notes:
* All profit and earnings per share figures in this news release relate to
underlying business performance (as defined below) from continuing operations
unless otherwise stated.
The principal Alternative Performance Measures ("APMs") presented are the
underlying measures of earnings which exclude the amortisation of acquired
intangibles, gain or loss on the movement on the fair value of derivative
financial instruments, exceptional items and the associated tax impact of
these. The directors believe that these APMs assist with the comparability of
information between reporting periods as well as reflect the key performance
indicators used within the business to measure performance. The term
underlying is not defined under IFRS and may not be comparable with similarly
titled measures used by other companies.
EBITDA is defined as operating profit before interest, tax, depreciation and
amortisation. Reference to constant currency relates to the re-translation of
H1 2025 financial information at the H1 2024 exchange rates to reflect the
movement excluding the impact of foreign exchange. The exchange rates applied
are disclosed in note 12.
A reconciliation of underlying measures to statutory measures is provided
below:
Group - continuing operations: Underlying Non-underlying Statutory
EBITDA (£m) 39.8 3.1 42.9
Operating profit (£m) 27.1 2.4 29.5
Profit before tax (£m) 24.1 2.4 26.5
Tax charge on profit (£m) (5.2) (0.5) (5.7)
Profit after tax (£m) 18.9 1.9 20.8
Basic earnings per share (pence) 7.0 0.7 7.7
Diluted earnings per share (pence) 6.8 0.7 7.5
Group - discontinued operations:
(Loss)/profit after tax (£m) (0.3) (0.1) (0.4)
Segments - continuing operations:
Sensors & Information EBITDA (£m) 19.5 (2.3) 17.2
Sensors & Information operating profit (£m) 16.1 (2.6) 13.5
Countermeasures & Energetics EBITDA (£m) 29.7 - 29.7
Countermeasures & Energetics operating profit (£m) 20.4 (0.4) 20.0
The adjustments comprise:
· amortisation of acquired intangibles of £0.7m (H1 2024: £1.0m, 2024:
£2.0m)
· gain on the movement in the fair value of derivative financial
instruments of £5.5m (H1 2024: £1.1m gain, 2024: £2.0m loss)
· exceptional items of £2.4m (H1 2024: £7.6m, 2024: £9.0m), comprising:
o acquisition expenses of £0.8m (H1 2024: £1.7m, 2024: £3.4m), relating to
deferred consideration accounted for as a post-acquisition expense under IFRS
2 and professional fees incurred in relation to the Group's mergers and
acquisition activity in the period
o expense of £0.1m (H1 2024: £5.0m, 2024: £7.5m) in relation to the
ongoing costs incurred for the defined benefit pension buy-in process which
will eventually conclude with a buy-out of the scheme
· costs relating to a restructuring within the Sensors & Information
segment of £1.5m (H1 2024: £nil, 2024: £nil)
· tax impact of adjustments of £0.5m charge (H1 2024: £1.3m credit,
2024: £1.7m credit)
· discontinued operations in respect of the Explosive Hazard Detection
("EHD") business, net of tax, of £nil profit (H1 2024: £4.7m profit, 2024:
£4.5m profit) an increase in disposal provision relating to a discontinued
operation of £0.1m (H1 2024: £nil, 2024: £6.4m).
Further details are provided in note 3.
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 global business that specialises in the manufacture of
high technology products and the provision of services to the defence,
security and aerospace markets
· Employing approximately 2,700 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)
Analyst meeting
An analyst meeting will take place at 09.00 (UK time) on Tuesday 3 June 2025
at the offices of Investec Bank plc, 30 Gresham St, London EC2V 7QP. To
confirm attendance please contact MHP Group: chemringplc@mhpgroup.com.
Presentation
The presentation slides and a live audio webcast of the presentation to
analysts will be available at the Chemring Group results centre
www.chemring.com/investors/results-centre
(http://www.chemring.com/investors/results-centre) at 09.00 (UK time) on
Tuesday 3 June 2025.
Photography
Original high resolution photography is available to the media by contacting
MHP Group: chemringplc@mhpgroup.com .
INTERIM MANAGEMENT REPORT
Group overview
H1 2025 performance was in line with the Board's expectations. Revenue was up
5% to £234.3m (H1 2024: £223.4m, 2024: £510.4m), driven by strong
performance in Countermeasures & Energetics, offset by a weaker period in
Sensors & Information as the new UK Government administration finalises
its spending plans, as previously guided.
Order intake for H1 2025 was strong, up 42% to £488m (H1 2024: £345m, 2024:
£673m) and has contributed to a record order book at 30 April 2025 of
£1,304m (H1 2024: £1,041m, 2024: £1,038m), the highest in Chemring's
history.
Underlying operating profit was up 8% to £27.1m (H1 2024: £25.0m, 2024:
£71.1m) resulting in an underlying operating margin of 11.6% (H1 2024: 11.2%,
2024: 13.9%). The slightly improved margin primarily reflects the operational
efficiencies at Energetics offset by the weaker period at Roke.
Total finance expense was higher at £3.0m (H1 2024: £2.3m, 2024: £4.8m)
reflecting the increase in net debt following continued investment in growth
capex.
Underlying profit before tax was £24.1m (H1 2024: £22.7m, 2024: £66.3m).
The effective tax rate on the underlying profit before tax increased to 21.6%
(H1 2024: 18.9%, 2024: 18.6%), as we have guided, as it trends toward the UK
corporation tax rate. The underlying diluted earnings per share was up 3% to
6.8p (H1 2024: 6.6p, 2024: 19.3p).
Net debt has increased since the year end to £93.3m (H1 2024: £75.3m, 2024:
£52.8m) primarily due to the strategic decision to invest in capex to
increase capacity in our specialist energetic materials businesses to meet
growing market demand.
Underlying operating cash inflow of £32.0m (H1 2024: £29.4m, 2024: £96.0m)
represented 80% (H1 2024: 83%, 2024: 102%) of underlying EBITDA. The operating
cash performance reflects our continued focus on commercial contracting and
working capital management. Our two-year rolling average cash conversion has
been 99%, showing the ongoing focus on working capital improvements is
delivering long-term, sustainable positive results.
Of the Group's £1,304m order book at 30 April 2025, approximately £221m is
scheduled for delivery during the second half of 2025. This represents cover
of approximately 85% (H1 2024: 96%) of expected 2025 revenue, leaving
£1,083m of order book to be delivered in 2026 and beyond. At this stage, in
Countermeasures & Energetics this provides approximately 86% (H1 2024:
90%) cover of expected 2026 revenue and approximately 64% cover of expected
2027 revenue.
Statutory operating profit was £29.5m (H1 2024: £17.5m, 2024: £58.1m) and
after statutory finance expenses of £3.0m (H1 2024: £2.3m, 2024: £4.8m),
statutory profit before tax was £26.5m (H1 2024: £15.2m, 2024: £53.3m).
The statutory profit after tax from continuing operations was £20.8m (H1
2024: £12.2m, 2024: £42.7m) giving a statutory basic earnings per share from
continuing operations of 7.7p (H1 2024: 4.4p, 2024: 15.7p).
A reconciliation of underlying to statutory profit measures is provided in
note 3. The non-underlying costs relate to the amortisation of acquired
intangibles, the gain on the movement in the fair value of derivative
financial instruments and exceptional items, plus the tax impact associated
with these adjustments.
Markets
Global attention on defence spending remains high, fuelled by uncertainty
around US support for NATO, the ongoing events in Ukraine and the Middle East,
as well as enduring tensions in the Asia-Pacific region. These deep-rooted
geopolitical dynamics will drive a positive outlook for defence and security
spending for the foreseeable future. In response to this elevated threat
environment, several countries continue to announce defence budget increases,
with the urgent need to restock their national arsenals and upgrade their
capabilities combining to present significant growth opportunities for the
Group.
With the Russia-Ukraine war now in its fourth year, defence spending is rising
right across Europe, for both NATO and non-NATO member countries. Furthermore,
as European nations respond to the challenge of security increasingly becoming
their own responsibility, they also aim to significantly increase their
reliance on the continent's own defence contractors.
The European Defence Industrial Strategy ("EDIS") sets out a clear long-term
vision to achieve defence industrial readiness in the European Union ("EU"),
with the Readiness 2030 initiative (was the ReArm Europe Plan) aiming to
increase defence investment and defence capabilities quickly and
significantly. Readiness 2030 aims to mobilise up to €800 billion to
enhance Europe's military infrastructure by i) unlocking the potential of
public defence funding at the national level, ii) creating a new €150
billion loan instrument - Security Action For Europe ("SAFE") for joint
procurement, iii) the potential redirection of cohesion funds, and iv) by
expanding European Investment Bank support. The recent UK-EU Security and
Defence Partnership potentially initiates a pathway for UK businesses to
ultimately access SAFE re-armament funds, and we are currently working with
our stakeholders to identify opportunities where Chemring can access product
demand and funding opportunities.
UK Defence is undergoing significant reforms aimed at both enhancing national
security and bolstering the country's global presence. The UK Strategic
Defence Review ("SDR"), initiated in July 2024 and announced yesterday, sets
the path for the next decade to transform defence and make the UK secure at
home and strong overseas by ensuring the nation is equipped to address the
emerging threats, global security challenges, and technological advancements
of the twenty-first century. Importantly, the SDR has been conducted in the
context of a clear cross-party governmental commitment to increase defence
spending over time, presenting potential opportunities for growth and
investment for Chemring.
Roke's specialist capabilities and advanced technologies make it well placed
to support multiple priorities identified in the SDR including the development
of the United Kingdom Ministry of Defence's ("MOD") new "digital targeting
web" - a major initiative aimed at enhancing battlefield connectivity and
decision-making, backed by an investment of over £1 billion. Additionally,
the establishment of the new Cyber and Electromagnetic Activities ("CEMA")
Command to oversee the UK's defensive and active cyber activities, alongside
electronic warfare ("EW") efforts, will also create significant opportunities
for Roke.
The SDR also commits to investing £1.5 billion in an "always on" pipeline for
munitions and building at least six new factories in the UK to produce
munitions and energetics, which are key components of weapons, including
propellants, explosives, and pyrotechnics. It also commits to building up to
7,000 UK-built long-range weapons to strengthen Britain's Armed Forces. The
Group is well placed to benefit from these opportunities.
The UK Government recently announced the largest sustained increase in defence
spending since the Cold War, with budgets set to rise to 2.5% of GDP by 2027
and to 3% in the following Parliament. Delivering on NATO commitments and
ensuring a resilient nuclear deterrent are among the core priorities for this
spend. Industrially, this is expected to be accompanied by a significant
amount of capability re-shoring, and stockpile production, to ensure national
self-sufficiency. The ensuing resilient and scalable UK industrial base will
provide growth, high quality jobs and innovation to the national economy.
The UK MOD has also outlined a broad set of capability priorities, emphasising
the integration of emerging technologies such as artificial intelligence
("AI"), autonomous systems, cyber and space capabilities, advanced materials,
quantum computing, and next-generation air systems.
The US remains the world's largest defence market, with the Trump
administration focused on deterring adversaries by maintaining overwhelming
military superiority. In its recent budget proposal, the White House is
requesting a total of US$1.01trillion in national defence spending for FY26.
The expected capability focus for this budget will be on countering the
threats posed by China's large missile inventories, growing attack-submarine
force and sophisticated cyberattack capabilities. As a key supplier into the
space and missiles sector, this represents a growing opportunity for Chemring.
The Group's significant capabilities position it well to contribute to both
current and emerging defence and security requirements across multiple
markets.
Strategy
Chemring is a technology-driven mid-tier defence and security company
operating in specialised, high-barrier to entry markets where our
differentiated capabilities provide a clear competitive advantage. Our growth
strategy is built around three core strategic pillars - Grow, Accelerate, and
Protect - designed to drive long-term value creation, scale our presence in
key markets, and strengthen our position as a trusted partner in defence and
national security.
Since Russia's illegal invasion of Ukraine in February 2022 and the broader
decline in geopolitical stability, demand for our specialised Energetics
capabilities is exceptionally strong and enduring. Alongside our customers, we
are investing in increased production capacity and the advancement of
manufacturing technologies across the Group to meet this demand. In the
Countermeasures domain, we anticipate steady demand for our air and naval
products over the next decade - even without active force deployment. The
introduction of new platforms such as the F-47 in the US and the Future Combat
Air System and Global Combat Air Programmes in Europe and Japan, all of which
will require expendable countermeasures, represent enduring long-term demand
for our products. To meet this, we are continuing to drive modernisation and
automation throughout our facilities. Wherever possible, we also encourage
technology sharing and a commitment to manufacturing excellence across the
Group.
The Sensors & Information sector represents a further strategic growth
area for Chemring. Our advanced capabilities align closely with evolving
customer priorities, addressing increasingly complex and diverse threats. We
are expanding our offerings across data science, software engineering,
sensors, secure communications, cyber, and AI - areas where our deep customer
relationships, mission expertise, and integration capabilities create clear
differentiation. This positions us well to deliver enhanced value to defence,
national security, and other critical customers, supporting long-term,
sustainable growth.
The Group remains committed to pursuing strategy-led, bolt-on acquisitions,
guided by a disciplined capital allocation framework and clearly defined
criteria approved by the Board. M&A represents an important lever for
accelerating growth in high-priority defence and national security segments -
including cyber, information advantage, and US space and missile sub-systems.
For these market areas we have a live pipeline of technology and capability
targets which we are actively evaluating against our robust acquisition
criteria.
Segmental review - Countermeasures & Energetics
Performance
In Countermeasures & Energetics, order intake was £418m, up 68% (H1 2024:
£249m, 2024: £523m) with multi-year orders received across the sector.
In the Energetics sector we continue to see increased levels of activity and
demand in the propellants and energetic materials markets as customers
re‐evaluate their operational usage and stockpile requirements associated
with traditional defence capabilities. As a result, our specialist energetic
materials businesses, which design and manufacture high precision engineered
devices and specialist materials, have seen strong customer demand with order
intake increasing by 154% to £394m against an elevated comparative number in
the prior period (H1 2024: £155m, 2024: £348m).
At the start of the financial year our Norwegian subsidiary, Chemring Nobel,
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. Chemring Nobel also signed a three-year supply
agreement with SAAB Switzerland for the supply of HMX. This contract, valued
at £36m, will see deliveries being made in 2028-2030.
In the UK, our Scotland based business received an order valued at £23m for
the delivery of critical components used in the Next Generation Light
Anti‐Tank Weapon system ("NLAW"). This award is a follow-on to the £43m
contract received from SAAB in March 2023. The Group expects to see deliveries
under this contract commencing in 2026 and continuing into 2027. The business
continues to make excellent progress in the construction of its new
propellants manufacturing facility which remains on schedule, with costs in
line with the plan. Construction of the new buildings is now complete,
equipment is being installed, and the commissioning and licencing process is
underway. Once live production starts in early 2027 this new facility will
provide increased capacity and throughput in a safe and modern manufacturing
environment.
We have also seen growing demand for precision engineered devices for space
and missile applications, with our Chicago business receiving a significant
level of orders in the period. This included 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, with continuous flow manufacturing made possible by the
additional 45,000 sq. ft. facility that commenced operations in April 2024.
Order intake for our Countermeasures business was £24m (H1 2024: £94m, 2024:
£175m) as focus turned to execution of multi-year orders received in prior
years. Our UK Countermeasures business ("CCM UK") continued to see strong
order intake with notable awards including a £11m order from the UK MOD for
the supply of various air countermeasures in support of current and future
operations. All work under this contract will be performed at CCM UK's
facility near Salisbury, with deliveries being made during FY27 and FY28. As
at 30 April 2025, the Countermeasures order book was £314m (H1 2024: £380m,
2024: £354m), providing strong order coverage in the medium term
Revenue for Countermeasures & Energetics was up by 20% to £141.7m (H1
2024: £117.7m, 2024: £298.4m) driven by growth across the whole segment.
Underlying operating profit increased to £20.4m (H1 2024: £11.8m, 2024:
£46.5m) and the underlying operating margin increased to 14.4% (H1 2024:
10.0%, 2024: 15.6%). The improvement in profitability was primarily due to
improved operational performance in the period.
Opportunities and outlook
The Countermeasures & Energetics segment focus remains on maintaining and
growing the Group's market-leading positions, in particular in the growing
markets for specialist energetic materials and precision engineered energetic
devices, and in countermeasures where we see sustained demand for our air and
naval decoy products, particularly within our UK countermeasures business. Our
focus on seeking to achieve appropriate margins, mindful of financial
constraints from our customers, will continue.
The improved market conditions for our Energetics businesses reflected in our
order intake and order book has presented a strong organic growth opportunity
to expand capacity at these sites and in 2023 we announced a £200m investment
programme to capitalise on this long-term demand. In 2024 our Norwegian
business was awarded grant funding of £90m in support of our expansion
projects, meaning the net investment required by the Group is £110m in total.
To date we have spent c£70m and received £24m of grant funding in support of
these expansion projects. All projects are on track, and we expect to increase
revenue by £100m per annum and operating profit by £30m per annum from 2028.
In October 2024, the Norwegian Government announced that, in partnership with
Chemring Nobel, it had launched a feasibility study into the establishment of
a new production facility to further increase the production of military
explosives, as they view Chemring Nobel as the producer in Europe and North
America that can establish increased production the fastest. This co-funded
feasibility study investigated the geographic location, infrastructure
requirements and environmental considerations of building a new production
facility. The study also considered the role and the levels of any financial
contribution made by the Norwegian Government. Phase I, which focused on
technical feasibility, the energetics market, cost/benefits to the local
community and the overall business case, concluded in January, and the
Norwegian Government is currently evaluating whether to proceed to Phase II.
This would expand further on the technical feasibility and commercial
arrangements, possibly by Q1 2026. We will provide a further update as and
when appropriate.
As part of the twelve-year framework agreement with Diehl Defence (referenced
above) Chemring is exploring options to perform the blending stage of the
manufacturing process in Germany. Similarly, the Group has completed a
feasibility study with the UK Government into the development of further
manufacturing capacity at our site in Scotland.
Alongside these investments in expanding our capacities we continue to invest
in new product development to ensure that our product portfolio remains highly
relevant to our customers and will continue the process of operational
alignment to share technology and manufacturing excellence across the Group.
The Countermeasures & Energetics order book at 30 April 2025 was £1,222m
(H1 2024: £883m, 2024: £933m) of which approximately £181m is currently
expected to be delivered in the second half of 2025, representing 96% (H1
2024: 99%) of expected 2025 revenue. Coverage for 2026 and 2027 respectively
is approximately 86% and 64% of expected revenue.
Segmental review - Sensors & Information
Performance
Order intake in the period was down at £70m (H1 2024: £96m, 2024: £150m)
and revenue decreased by 12% to £92.6m (H1 2024: £105.7m, 2024: £212.0m),
as expected. There have been delays in the publication of the SDR in the UK
and whilst we have seen no evidence of Roke programmes either being lost or
cancelled, the rate of new order placement has slowed and there has been an
increase in project extensions. During the period we took action to match
Roke's cost base with current demand and integrated our Futures business unit
within our Defence business unit, which resulted in c.50 redundancies and has
been recorded as a non-underlying restructuring cost. Having taken this
action, and with the SDR now announced, Roke is now well positioned to
capitalise upon the expected upturn in demand in the second half of the year.
Roke has continued to make significant strategic progress in its Defence
products business where it has a significant (>£300 million) five-year
international sales pipeline.
In January 2025 Roke signed a multi-year strategic agreement with a major US
Prime Contractor for the supply of its high-speed Miniature Radar Altimeter
("MRA"). With a value of at least £26m (US$32m) over four years with
deliveries commencing in October 2025, this agreement demonstrated the
critical role Chemring plays in multiple space and missiles programmes is not
confined to our Energetics businesses. Roke's MRA is the smallest and lowest
mass radar altimeter of its type currently available for use in missile
systems and uncrewed air vehicles.
In April 2025 it was announced that Roke will lead a UK sovereign industry
collaborative effort to provide security to the UK, and its allies. Known as
Science & Technology Oriented Research & development in Missile
defence ("STORM"), this framework contract encompasses a broad spectrum of
missile defence activities and capabilities. Partnering with the United
Kingdom Missile Defence Centre ("UK MDC") Roke will lead a UK sovereign
industry collaborative effort to provide security to the UK, and its allies,
by countering current and future threats, including ballistic and hypersonic
missiles. Valued at £251m over six years, the STORM framework will see Roke
enhance its role as a trusted partner to the UK MDC, informing critical UK
defence decision making and enabling Roke to play a key role in developing
next-generation missile defence capabilities. As the overall Prime Contractor
Roke will self-deliver elements of the contract and will also manage industry
partners as they deliver the significant majority of contract value.
Roke continues to win contracts as the prime contractor and therefore order
intake and revenue contains an element of "pass-through". For H1 2025,
"pass-through" order intake was £2m (H1 2024: £7m, 2024: £16m) and revenue
was £13.5m (H1 2024: £17m, 2024: £28m). Excluding Roke "pass-through"
revenue, the underlying operating margin for Sensors & Information would
have been 20.4% (H1 2024: 24.4%, 2024: 22.5%).
In the US, the Enhanced Maritime Biological Detection System ("EMBD") Full
Rate Production ("FRP") contract continued as planned with a further $15m
order received in the period. On the Joint Biological Tactical Detection
System ("JBTDS") programme, which last year benefitted from a Low Rate Initial
Production contract that completed in 2024, we are now supporting the US Army
in their field testing and acceptance trials ahead of the expected FRP
contract award in FY26.
These sole source positions with the United States Department of Defence ("US
DoD") provide an excellent opportunity to penetrate international markets with
these products sold under Foreign Military Sales ("FMS") and direct commercial
sales agreements to key strategic allies of the US Government.
Underlying operating profit in Sensors & Information decreased, as
expected, by 26% to £16.1m (H1 2024: £21.6m, 2024: £41.4m) and the
underlying operating margin decreased to 17.4% (H1 2024: 20.4%, 2024: 19.5%).
Opportunities and outlook
The focus for Sensors & Information continues to be on expanding the
Group's product, service and capability offerings to government and commercial
customers in the technology-driven areas of national security, AI and machine
learning, tactical EW, information security and biological detection.
In the UK, the national security and defence markets are being increasingly
shaped by a rapidly changing threat environment with AI, EW, and data
proliferation of particular focus. This is driving increased investment as
customers look to modernise their capabilities at pace.
Roke will continue to focus its efforts on growing across all its business
areas, delivering research, design, engineering and advisory services using
its high-quality people and capabilities. New product launches and strategic
partnerships form an integral part of this work. In the period Roke launched
EM-Vis Deceive, a new portable EW system that brings electromagnetic attack
capabilities directly to troops on the ground. It also signed a strategic
partnership with Kagai Corporation to deliver advanced technologies to the
Japanese market.
With strong positions in markets with high barriers to entry and where
customers have unique profiles, we remain on track to organically grow Roke's
revenues to greater than £250m by 2028, while maintaining strong margin
performance. We will also continue to explore further bolt-on, strategy-led,
acquisitions that can accelerate our growth strategy for Roke. However, any
acquisition must meet a strict set of criteria, enhance shareholder value and
fit in with our wider growth plans.
The order book for Sensors & Information at 30 April 2025 was £82m
(H1 2024: £158m, 2024: £105m) driven by delays in the publication of the
SDR in the UK (as previously guided). Of this, £40m is expected to be
delivered in the second half of 2025, providing 67% cover of expected 2025
revenue (H1 2024: 91%).
Retirement benefit obligations
On 28 November 2023 the trustees of the Group's legacy UK defined benefit
pension scheme, the Chemring Group Staff Pension Scheme (the "Scheme"),
entered into a buy-in contract with an insurer, Pension Insurance Corporation.
In the period to 30 April 2025 we have paid £0.2m in funding and expect to
provide further funding for the rectification of certain members' benefits and
to meet the costs associated with the eventual buy-out of the Scheme over the
next six to nine months.
On completion of the full buy-out of the Scheme, the defined benefit assets
and matching defined benefit liabilities will be derecognised from the Group
balance sheet.
Board of Directors
Andrew Davies, who had been a non-executive director of Chemring since May
2016 and the Senior Independent Director since May 2020, retired from the
Board on 31 January 2025, having approached the end of his nine-year term. As
previously indicated in the 2023 annual report, Fiona MacAulay, who has been a
non-executive director since June 2020, succeeded Andrew as the Senior
Independent Director.
In a separate announcement the Board has today confirmed the appointment of
Pete Raby as an independent non-executive director. He will join the Board on
1 September 2025. Pete is currently CEO of Morgan Advanced Materials plc, the
FTSE-250 listed global manufacturer of advanced carbon and ceramic materials.
Pete has been in this role for ten years and is due to retire on 1 July 2025.
Upon joining the Board, Pete Raby will become a member of the Audit,
Nomination and Remuneration committees.
Dividends
At the Annual General Meeting on 26 February 2025 the shareholders approved a
final dividend in respect of the year ended 31 October 2024 of 5.2p per
ordinary share. This was paid on 11 April 2025 to shareholders on the register
on 21 March 2025.
The Board continues to recognise that dividends are an important component of
total shareholder returns. The Board's objective is for a growing and
sustainable dividend and continues to target a dividend cover of c.2.5 times
underlying EPS, subject inter alia to maintaining a strong financial position.
Therefore, the Board has declared an interim dividend in respect of the 2025
financial year of 2.7p (H1 2024: 2.6p) per ordinary share which will be paid
on 5 September 2025 to shareholders on the register on 15 August 2025.
Share buyback programme
On 26 February 2025 the Group announced that it had commenced a share buyback
programme of up to a maximum consideration of £40m. The sole purpose of the
buyback programme is to reduce the Company's share capital with the ordinary
shares purchased under the programme being cancelled. The buyback programme
will end no later than the 2027 AGM.
As at 30 April 2025 0.9m shares have been purchased under the buyback
programme at a cost of £3.3m.
RCF refinancing
On 28th April, the Group refinanced its revolving credit facility. The Group
now has available revolving credit facilities of £180m running until December
2028, of which three further one-year extensions are available at the banks'
discretion. The Group also continues to have a $20m overdraft facility for use
in the US and a UK Export Finance loan facility for up to £80m, meaning total
facilities of £275m are currently available to the Group.
Outlook - full year and longer term
The Board's full year expectations are unchanged, supported by order coverage
at 30 April 2025 of 85% of expected 2025 revenue, and with a similar H2
weighting of operating profit to last year as previously communicated in
February 2025.
The Group has previously communicated certain medium term financial objectives
and assumptions. The material elements of these are:
- Group - targeting mid-single digit % growth in the near term,
accelerating to low double digit % growth as new capacity comes online
- S&I - targeting mid-single digit % growth, from double digit growth
in Roke, and US Sensors expected to be flat with a subsequent step change in
growth as the JBTDS Program of Record commences FRP
- C&E - targeting low single digit % growth in Countermeasures, with
a step change in growth in Energetics as additional capacity is commissioned
- Group targeting mid-teen return on sales in the medium term, with some
operational leverage expected longer term
The market backdrop for defence is increasingly robust. The Group's
longer-term growth prospects are strong, underpinned by robust activity
levels, our leading technological offerings, our people, our order book and
pipeline of further opportunities, high barriers to entry, the investments we
continue to make in our strong, high-quality business and the potential for
further bolt-on opportunities over time.
The Group remains on track to achieve its ambition to increase the Group's
annual revenue to c.£1bn by 2030. This makes certain assumptions regarding
market sizes, inclusion of some bolt-on M&A and is at current FX rates.
The Group will continue to focus on cash generation and maintaining a robust
and deployable balance sheet to enable opportunities for further growth.
With market-leading innovative technologies and services that are critical to
our customers the Board is confident that Chemring will continue to deliver
both robust organic and inorganic growth, balancing near-term performance with
longer-term growth and value creation.
STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for the maintenance and integrity of the Company
website.
Legislation in the United Kingdom governing the preparation and dissemination
of financial information differs from legislation in other jurisdictions.
Responsibility statement
We confirm that to the best of our knowledge:
a) the Condensed Set of Financial Statements has been prepared in accordance with
IAS 34 Interim Financial Reporting as adopted for use in the UK;
b) the Interim Management Report includes a fair review of the information
required by:
- DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being
an indication of important events that have occurred during the first six
months of the financial year and their impact on the condensed set of
financial statements; and a description of the principal risks and
uncertainties for the remaining six months of the year; and
- DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being
related party transactions that have taken place in the first six months of
the current financial year and that have materially affected the financial
position or performance of the entity during that period; and any changes in
the related party transactions described in the last annual report that could
do so.
By order of the Board
Michael Ord James Mortensen
Group Chief Executive Chief Financial Officer
3 June 2025 3 June 2025
CONDENSED CONSOLIDATED INCOME STATEMENT
for the half year to 30 April 2025
Note Unaudited Unaudited Audited
Half year to Half year to Year to
30 April 2025 30 April 2024 31 Oct 2024
£m £m £m
Continuing operations
Revenue 2 234.3 223.4 510.4
Operating profit 2 29.5 17.5 58.1
Finance expense (3.0) (2.3) (4.8)
Profit before tax 26.5 15.2 53.3
Tax charge on profit 5 (5.7) (3.0) (10.6)
Profit after tax for the period 20.8 12.2 42.7
Discontinued operations
(Loss)/profit after tax from discontinued operations 13 (0.4) 4.2 (3.2)
Profit after tax for the period 20.4 16.4 39.5
Earnings per ordinary share
Continuing operations
Basic 6 7.7p 4.4p 15.7p
Diluted 6 7.5p 4.3p 15.3p
Continuing operations and discontinued operations
Basic 6 7.5p 6.0p 14.5p
Diluted 6 7.4p 5.8p 14.2p
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the half year to 30 April 2025
Unaudited Unaudited Audited
Half year to Half year to Year to
30 April 2025 30 April 2024 31 Oct 2024
£m £m £m
Profit after tax attributable to equity holders of the parent 20.4 16.4 39.5
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the defined benefit pension schemes (0.2) (2.1) (1.3)
Movement on deferred tax relating to pension schemes (0.1) 0.5 0.5
(0.3) (1.6) (0.8)
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations (6.0) (6.6) (12.0)
Tax on exchange differences on translation of foreign operations (0.7) - 0.1
(6.7) (6.6) (11.9)
Total comprehensive income attributable to equity holders of the parent 13.4 8.2 26.8
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the half year to 30 April 2025
Unaudited half year to 30 April 2025
Share Share Special Translation Retained Total
capital premium capital reserve earnings £m
£m account reserve £m £m
£m £m
At 1 November 2024 2.7 309.0 13.0 (20.7) 52.3 356.3
Profit after tax - - - - 20.4 20.4
Other comprehensive loss - - - (6.0) (0.2) (6.2)
Tax relating to components of other comprehensive loss - - - (0.7) (0.1) (0.8)
Total comprehensive (loss)/income - - - (6.7) 20.1 13.4
Ordinary shares issued - 0.1 - - - 0.1
Share-based payments (net of settlement) - - - - 3.0 3.0
Dividends paid - - - - (14.2) (14.2)
Purchase of own shares - - - - (6.1) (6.1)
At 30 April 2025 2.7 309.1 13.0 (27.4) 55.1 352.5
Unaudited half year to 30 April 2024
Share Share Special Translation Retained Total
capital premium capital reserve earnings £m
£m account reserve £m £m
£m £m
At 1 November 2023 2.8 308.7 12.9 (8.8) 62.9 378.5
Profit after tax - - - - 16.4 16.4
Other comprehensive loss - - - (6.6) (2.1) (8.7)
Tax relating to components of other comprehensive loss - - - - 0.5 0.5
Total comprehensive (loss)/income - - - (6.6) 14.8 8.2
Ordinary shares issued - 0.3 - - - 0.3
Share-based payments (net of settlement) - - - - 2.9 2.9
Dividends paid - - - - (12.5) (12.5)
Purchase of own shares (0.1) - 0.1 - (26.5) (26.5)
At 30 April 2024 2.7 309.0 13.0 (15.4) 41.6 350.9
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the half year to 30 April 2025
Audited year to 31 October 2024
Share Share Special Translation Retained Total
capital premium capital reserve earnings £m
£m account reserve £m £m
£m £m
At 1 November 2023 2.8 308.7 12.9 (8.8) 62.9 378.5
Profit after tax - - - - 39.5 39.5
Other comprehensive loss - - - (12.0) (1.3) (13.3)
Tax relating to components of other comprehensive loss - - - 0.1 0.5 0.6
Total comprehensive (loss) / income - - - (11.9) 38.7 26.8
Ordinary shares issued - 0.3 - - - 0.3
Purchase of own shares (0.1) - 0.1 - (38.4) (38.4)
Share-based payments (net of settlement) - - - - 8.7 8.7
Dividends paid - - - - (19.6) (19.6)
At 31 October 2024 2.7 309.0 13.0 (20.7) 52.3 356.3
CONDENSED CONSOLIDATED BALANCE SHEET as at 30 April 2025
Note Unaudited Unaudited Audited
As at As at As at
30 April 2025 30 April 2024 31 Oct 2024
£m £m £m
Non-current assets
Goodwill 97.3 99.4 98.5
Development costs 18.9 17.5 18.6
Other intangible assets 27.9 8.5 10.0
Property, plant and equipment 303.8 261.0 287.8
Retirement benefit surplus - 0.8 0.1
Deferred tax 9.6 6.4 7.3
457.5 393.6 422.3
Current assets
Inventories 150.5 124.2 127.1
Trade and other receivables 115.5 86.4 91.0
Cash and cash equivalents 11 22.6 4.6 45.0
Current tax 1.0 - -
Derivative financial instruments 8 2.3 0.6 0.9
291.9 215.8 264.0
Assets classified as held for sale 13 5.7 6.0 5.8
Total assets 755.1 615.4 692.1
Current liabilities
Borrowings 11 (3.4) (14.3) (43.0)
Lease liabilities 11 (2.8) (1.0) (2.1)
Trade and other payables (207.0) (147.1) (163.3)
Provisions (3.4) (5.4) (3.2)
Current tax - (5.3) (8.8)
Derivative financial instruments 8 (0.7) (1.1) (1.5)
(217.3) (174.2) (221.9)
Non-current liabilities
Borrowings 11 (98.0) (59.1) (43.7)
Lease liabilities 11 (11.6) (5.4) (8.9)
Government grants (35.5) - (24.0)
Provisions (16.3) (11.3) (16.7)
Deferred tax (23.7) (14.3) (17.6)
Derivative financial instruments 8 (0.1) (0.1) (2.9)
Preference shares 11 (0.1) (0.1) (0.1)
(185.3) (90.3) (113.9)
Total liabilities (402.6) (264.5) (335.8)
Net assets 352.5 350.9 356.3
Equity
Share capital 2.7 2.7 2.7
Share premium account 309.1 309.0 309.0
Special capital reserve 13.0 13.0 13.0
Translation reserve (27.4) (15.4) (20.7)
Retained earnings 55.1 41.6 52.3
Total equity 352.5 350.9 356.3
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
for the half year to 30 April 2025
Note Unaudited Unaudited Audited
Half year to Half year to Year to
30 April 2025 30 April 2024 31 Oct 2024
£m £m £m
Cash flows from operating activities
Cash generated from underlying operations 10 32.0 29.4 96.0
Cash impact of non-underlying items (1.5) (1.1) (2.5)
Cash (utilised in)/generated from discontinued underlying operations (0.3) (0.6) (1.5)
10
Cash impact of discontinued non-underlying items 10 (0.3) (1.4) (1.5)
Cash flows from operating activities 29.9 26.3 90.5
Employer contributions to defined benefit pension scheme (0.2) (2.0) (3.0)
Tax paid (11.5) (5.2) (6.5)
Net cash inflow from operating activities 18.2 19.1 81.0
Cash flows from investing activities
Purchases of intangible assets (5.5) (0.9) (4.8)
Purchases of property, plant and equipment (40.6) (34.2) (64.8)
Grant funding 12.9 - 22.0
Net cash outflow from investing activities (33.2) (35.1) (47.6)
Cash flows from financing activities
Dividends paid 7 (14.2) (12.5) (19.6)
Purchase of own shares (6.4) (29.7) (41.0)
Proceeds for transactions in own shares - 0.5 0.9
Paid accrued dividends on shares (0.3) (0.2) (0.2)
Finance expense paid (0.7) (1.7) (4.0)
Capitalised facility fees paid - (0.3) (0.8)
Drawdown of borrowings 105.0 75.0 100.0
Repayments of borrowings (50.0) (30.1) (70.1)
Payment of lease liabilities (1.3) (0.7) (2.5)
Net cash inflow/(outflow) from financing activities 32.1 0.3 (37.3)
(Increase)/Decrease in cash and cash equivalents 17.1 (15.7) (3.9)
Cash and cash equivalents at beginning of period/year 2.0 6.4 6.4
Effect of foreign exchange rate changes 0.1 (0.4) (0.5)
Cash and cash equivalents at end of period/year* 19.2 (9.7) 2.0
11
* Cash and cash equivalents of £19.2m (31 October 2024: £2.0m) is net of
current borrowings of £3.4m (31 October 2024: £43.0m).
NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS
1. ACCOUNTING POLICIES
Basis of preparation
The condensed set of financial statements do not constitute statutory accounts
as defined by section 434 of the Companies Act 2006 and were approved by the
Board of Directors on 3 June 2025.
Full accounts for the year ended 31 October 2024, which include an unqualified
audit report, did not include a reference to any matters to which the auditors
drew attention by way of emphasis without qualifying the report and did not
contain statements under section 498(2) or (3) of the Companies Act 2006, have
been delivered to the Registrar of Companies. These were prepared in
accordance with UK-adopted international accounting standards ("UK-adopted
IFRS") in conformity with the requirements of the Companies Act 2006.
Whilst the financial information included in this announcement has been
computed in accordance with International Financial Reporting Standards
("IFRSs"), this announcement does not itself contain sufficient information to
comply with IFRSs. This condensed set of financial statements has been
prepared in accordance with IAS 34 Interim Financial Reporting as adopted for
use in the UK.
As required by the Disclosure Guidance and Transparency Rules of the Financial
Conduct Authority, the condensed set of financial statements has been prepared
applying the accounting policies and presentation that were applied in the
preparation of the company's published consolidated financial statements for
the year ended 31 October 2024 except for income tax and any new and amended
standards as set out below.
The preparation of financial statements in conformity with generally accepted
accounting principles requires the use of estimates and assumptions that
affect the reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during
the reporting period. Although these estimates are based on management's best
knowledge of the amount, event or actions, actual results ultimately may
differ from those estimates.
Going concern
The directors believe the Group is well placed to manage its business risks
successfully. The Group's forecasts and projections, taking account of
reasonably possible changes in trading performance, show that the Group should
be able to operate within the level of its current committed facilities.
As part of their regular assessment of the Group's working capital and
financing position, the directors have prepared a detailed bottom-up two-year
trading budget and cash flow forecast for the period through to October 2026,
being at least twelve months after the date of approval of the interim
financial statements. This is in addition to the Group's longer-term strategic
planning process. In assessing the forecast, the directors have considered:
· trading risks presented by the current economic conditions in the
defence market, particularly in relation to government budgets and
expenditure;
· the impact of macroeconomic factors, particularly inflationary
pressures, supply chain challenges, interest rates, tariffs and foreign
exchange rates;
· the status of the Group's financial arrangements and associated covenant
requirements;
· progress made in developing and implementing operational improvements;
· the availability of mitigating actions available should business
activities fall behind current expectations, including the deferral of
discretionary overheads and restricting cash outflows; and
· the long-term nature of the Group's business which, taken together with
the Group's order book, provides a satisfactory level of confidence to the
Board in respect of trading.
Additional detailed sensitivity analysis has been performed on the forecasts
to consider the impact of severe, but plausible, reasonable worst case
scenarios on the covenant requirements. These scenarios, which sensitised the
forecasts for specific identified risks, modelled the reduction in anticipated
levels of underlying EBITDA and the associated increase in net debt. These
scenarios included significant delays to major contracts and considered the
principal risks and uncertainties referred to in note 16. These sensitised
scenarios show headroom on all covenant test dates for the foreseeable future.
After consideration of the above, the directors have a reasonable expectation
that the Group has adequate resources to continue in operational existence for
the foreseeable future. Thus, they continue to adopt the going concern basis
in preparing the half-yearly condensed financial statements.
Alternative Performance Measures ("APMs")
In the analysis of the Group's financial performance and position, operating
results and cash flows, APMs are presented to provide readers with additional
information. The principal APMs presented are underlying measures of earnings
including underlying operating profit, underlying profit before tax,
underlying profit after tax, underlying EBITDA, underlying earnings per share,
and underlying operating cash flow. In addition, EBITDA, net debt, and
constant currency are presented which are also considered to be non-IFRS
measures. These measures are consistent with information regularly reviewed by
management to run the business, including planning, budgeting and reporting
purposes and for its internal assessment of the operational performance of
individual businesses.
The directors believe that the use of these APMs assist in providing
additional information on the underlying trends, performance and position of
the Group. APMs are used to improve the comparability of information between
reporting periods by adjusting for items that are non-recurring or otherwise
non-underlying. Management consider non-underlying items to be:
· amortisation of acquired intangibles;
· material exceptional items, for example relating to acquisitions and
disposals, business restructuring costs, impairments and legal costs;
· material exceptional items from changes in legislation;
· gains or losses on the movement in the fair value of derivative
financial instruments; and
· the tax impact of all of the above.
Our use of APMs is consistent with the prior year and we provide comparatives
alongside all current period figures.
Accounting policies
The accounting policies applied by the Group in this half-yearly financial
report are the same as those applied by the Group in its consolidated
financial statements for the year ended 31 October 2024 with the exception of
income tax which is detailed below. In addition, there have been no
significant changes in accounting judgements or key sources of estimation
uncertainty as disclosed in the consolidated financial statements for the year
ended 31 October 2024.
Income tax expense is recognised at an amount determined by multiplying the
profit before tax for the interim reporting period by management's best
estimate of the weighted-average annual income tax rate expected for the full
financial year.
Recent accounting developments
The following International Financial Reporting Committee ("IFRIC")
interpretations, amendments to existing standards and new standards were
adopted in the period ending 30 April 2025 but have not materially impacted
the reported results or the financial position:
· Classification of liabilities as Current or Non-current
(Amendments to IAS 1);
· Non-current liabilities with covenants (Amendments to IAS 1);
· Supplier finance (Amendments to IAS 7 and IFRS 7); and
· Financial instrument disclosures (Amendments to IFRS 17).
2. SEGMENTAL ANALYSIS - CONTINUING OPERATIONS
Half year to 30 April 2025 (unaudited)
Sensors & Information Countermeasures & Energetics Unallocated* Group
£m £m £m £m
92.6 141.7 - 234.3
Revenue
Segment result before depreciation, amortisation and non-underlying items 19.5 29.7 (9.4) 39.8
Depreciation (2.8) (8.9) - (11.7)
Amortisation (0.6) (0.4) - (1.0)
Segmental underlying operating profit 16.1 20.4 (9.4) 27.1
Amortisation of acquired intangibles (0.3) (0.4) - (0.7)
Non-underlying items (2.3) - 5.4 3.1
Segmental operating profit 13.5 20.0 (4.0) 29.5
Half year to 30 April 2024 (unaudited)
Sensors & Information Countermeasures & Energetics Unallocated* Group
£m £m £m £m
105.7 117.7 - 223.4
Revenue
Segment result before depreciation, amortisation and non-underlying items 24.5 19.4 (8.4) 35.5
Depreciation (2.2) (7.6) - (9.8)
Amortisation (0.7) - - (0.7)
Segmental underlying operating profit 21.6 11.8 (8.4) 25.0
Amortisation of acquired intangibles (0.4) (0.6) - (1.0)
Non-underlying items (1.7) - (4.8) (6.5)
Segmental operating profit 19.5 11.2 (13.2) 17.5
Year ended 31 October 2024 (audited)
Sensors & Information Countermeasures & Energetics Unallocated* Group
£m £m £m £m
212.0 298.4 - 510.4
Revenue
Segment result before depreciation, amortisation and non-underlying items 47.3 63.2 (16.8) 93.7
Depreciation (4.6) (16.4) - (21.0)
Amortisation (1.3) (0.3) - (1.6)
Segmental underlying operating profit 41.4 46.5 (16.8) 71.1
Amortisation of acquired intangibles (0.8) (1.2) - (2.0)
Non-underlying items (3.2) 2.8 (10.6) (11.0)
Segmental operating profit 37.4 48.1 (27.4) 58.1
* Unallocated items are specific corporate level costs that cannot be
allocated to a business segment.
3. ALTERNATIVE PERFORMANCE MEASURES
The principal Alternative Performance Measures ("APMs") presented are the
underlying measures of earnings which exclude exceptional items, gain or loss
on the movement on the fair value of derivative financial instruments, and the
amortisation of acquired intangibles. The directors believe that these APMs
improve the comparability of information between reporting periods. The term
underlying is not defined under IFRS and may not be comparable with similarly
titled measures used by other companies.
Reconciliation from underlying to statutory performance:
Unaudited Unaudited
Half year to 30 April 2025 Half year to 30 April 2024
Underlying Non-underlying Statutory Underlying Non-underlying Statutory
performance items Total performance items Total
£m £m £m £m £m £m
Continuing operations
Revenue 234.3 - 234.3 223.4 - 223.4
Operating profit 27.1 2.4 29.5 25.0 (7.5) 17.5
Finance expense (3.0) - (3.0) (2.3) - (2.3)
Profit/(loss) before tax 24.1 2.4 26.5 22.7 (7.5) 15.2
Taxation (5.2) (0.5) (5.7) (4.3) 1.3 (3.0)
Profit/(loss) after tax 18.9 1.9 20.8 18.4 (6.2) 12.2
Discontinued operations
(Loss)/profit after tax from discontinued operations (0.3) (0.1) (0.4) (0.5) 4.7 4.2
Profit after tax 18.6 1.8 20.4 17.9 (1.5) 16.4
Earnings per ordinary share
Continuing operations
Basic 7.0p 7.7p 6.7p 4.4p
Diluted 6.8p 7.5p 6.6p 4.3p
Continuing operations and discontinued operations
Basic 6.9p 7.5p 6.5p 6.0p
Diluted 6.7p 7.4p 6.4p 5.8p
Audited
Year to 31 October 2024
Underlying Non-underlying Statutory
performance items Total
£m £m £m
Continuing operations
Revenue 510.4 - 510.4
Operating profit 71.1 (13.0) 58.1
Finance expense (4.8) - (4.8)
Profit/(loss) before tax 66.3 (13.0) 53.3
Taxation (12.3) 1.7 (10.6)
Profit/(loss) after tax 54.0 (11.3) 42.7
Discontinued operations
(Loss)/profit after tax from discontinued operations (1.3) (1.9) (3.2)
Profit after tax 52.7 (13.2) 39.5
Earnings per ordinary share
Continuing operations
Basic 19.8p 15.7p
Diluted 19.3p 15.3p
Continuing operations and discontinued operations
Basic 19.3p 14.5p
Diluted 18.8p 14.2p
Breakdown of non-underlying items:
Unaudited Unaudited Audited
Half year to 30 April 2025 Half year to Year to
30 April 2024 31 Oct 2024
£m £m £m
Gain/(Loss) on the movement in the fair value of derivative financial 5.5 1.1 (2.0)
instruments
Acquisition expenses (0.8) (1.7) (3.4)
Defined benefit pension buy-in and buy-out transaction (0.1) (5.0) (7.5)
Change in senior management positions - (0.9) (1.2)
Business restructuring (1.5) - -
Decrease in legal and disposal provisions - - 3.1
Impact of non-underlying items on EBITDA 3.1 (6.5) (11.0)
Intangible amortisation arising from business combinations (0.7) (1.0) (2.0)
Impact of non-underlying items on operating profit and profit before tax 2.4 (7.5) (13.0)
Tax impact of non-underlying items (0.5) 1.3 1.7
Impact of non-underlying items on continuing profit after tax 1.9 (6.2) (11.3)
Non-underlying discontinued operations after tax (0.1) 4.7 (1.9)
Impact of non-underlying items on profit after tax 1.8 (1.5) (13.2)
Underlying profit after tax 18.6 17.9 52.7
Statutory profit after tax 20.4 16.4 39.5
Derivative financial instruments
Included in non-underlying items is a £5.5m gain (H1 2024: £1.1m gain, 2024:
£2.0m loss) on the movement in fair value of derivative financial
instruments. This is excluded from underlying earnings to ensure the
recognition of the gain or loss on the derivative matches the timing of the
underlying transaction.
Acquisition expenses
Included in non-underlying items is £0.8m (H1 2024: £1.7m, 2024: £3.4m) of
acquisition expenses. This includes £0.7m (H1 2024: £1.6m, 2024: £3.2m)
relating to deferred consideration contingent on continued employment of the
former owners of Cubica and Geollect which has been accounted for as
equity-settled share-based payments under IFRS 2 Share-based Payments. We have
classified this cost as a non-underlying item as it relates to the cost of
acquiring the respective businesses as opposed to representing a market rate
cost for ongoing employment of the former owners. The remaining expense of
£0.1m (H1 2024: £0.1m, 2024: £0.2m) primarily includes professional fees
incurred in relation to the Group's mergers and acquisitions activity during
the period. The acquisition expenses are not reflective of the underlying
costs of the Group and therefore, in order to provide an explanation of
results that is not distorted by the costs of acquiring a business rather than
organically developed, these costs have been excluded from the underlying
measures.
Defined benefit pension buy-in and buy-out transaction
Included in non-underlying items is an expense of £0.1m (H1 2024: £5.0m,
2024: £7.5m) in relation to the ongoing costs incurred for the defined
benefit pension buy-in process which will eventually conclude with a buy-out
of the scheme. The buy-in and buy-out transaction is considered a
non-recurring event by nature and the expense relating to it is material in
size, therefore these costs have been excluded from the underlying measures.
Change in senior management positions
Included in non-underlying items are costs of £nil (H1 2024: £0.9m, 2024:
£1.2m) relating to the change of senior management positions within the
Group, including the Group Chief Financial Officer and the President of the
Group's US operations. The non-underlying costs include costs incurred during
handover periods. Costs incurred of this nature are considered exceptional
given their significance comparative to general recruitment and remuneration
activities across the Group, therefore these costs have been excluded from the
underlying measures.
Business restructuring
Included in non-underlying items are costs of £1.5m (H1 2024: £nil, 2024
£nil) relating to business restructuring. During the period the Group took
mitigating action to match Roke's cost base with current demand, and we have
integrated our Futures business unit within our Defence business unit. As
such, these costs are not reflective of the underlying costs of the Group and
have been excluded from the underlying measures.
Legal and disposal provisions
Included in non-underlying items is a £nil (H1 2024: £nil, 2024 £3.1m)
release of legal provisions, relating to the 2018 incident at our UK
countermeasures facility in Salisbury. The HSE prosecution was closed in 2024.
Amortisation of acquired intangibles
Included in non-underlying items is the amortisation charge arising from
business combinations of £0.7m (H1 2024: £1.0m, 2024: £2.0m). Amortisation
of acquired intangibles arising from business combinations is associated with
acquisition costs under IFRS 3 Business Combinations. IFRS requires
intangibles to be recognised on acquisition that would not have been
capitalised had the business grown organically under Chemring's ownership. As
such, these costs are not reflective of the underlying costs of the Group and
therefore, in order to provide an explanation of results that is not distorted
by the history of business units being acquired rather than organically
developed, have been excluded from the underlying measures.
Tax
In the period to 30 April 2025, the tax impact of non-underlying items
comprises a £0.5m tax charge (H1 2024: £1.3m credit, 2024: £1.7m credit)
on the above non-underlying items.
Discontinued operations
Included in discontinued non-underlying items is a £nil profit (H1 2024:
£4.7m profit, 2024: £1.9m loss) in respect of the Explosive Hazard Detection
("EHD") business, and a £0.1m loss relating to an increase in provision for a
previously disposed European munitions business. See note 13 for further
details.
4. SEASONALITY OF REVENUE
Revenue in the Countermeasures & Energetics segment is expected to be
weighted towards the second half of the financial year. This second half
weighting arises due to customer behaviours in the defence marketplace, the
timing of expected contract activity, public holidays, planned facility
maintenance work programmes, and the acceptance testing of products by
customers.
Revenue in the Sensors & Information segment normally is more evenly
weighted across the first and second half of the year, with revenue at Roke
driven by the UK Government budget year.
5. TAX - CONTINUING OPERATIONS
Unaudited Unaudited Audited
Half year to
Half year to
Year to
30 April 2025
30 April 2024
31 October 2024
£m £m £m
Underlying tax charge 5.2 4.3 12.3
Tax impact of non-underlying items 0.5 (1.3) (1.7)
Total statutory tax charge 5.7 3.0 10.6
Income tax charge is recognised at an amount determined by multiplying the
profit before tax for the interim reporting period by management's best
estimate of the weighted-average annual income tax rate expected for the full
financial year.
The effective tax rate on underlying profit before tax for the period is a
charge of 21.6% (H1 2024: 18.9%, 2024: 18.6%). The effective tax rate is
higher than the 2024 effective tax rate, in line with our expectation, as it
trends toward the UK corporation tax rate .
6. EARNINGS PER SHARE
Earnings per share is based on the average number of shares in issue,
excluding own shares held, of 270,743,454 (H1 2024: 273,990,325, 2024:
272,875,033). Diluted earnings per share has been calculated using a diluted
average number of shares in issue, excluding own shares held, of 276,142,462
(H1 2024: 280,604,559, 2024: 279,133,292).
The earnings used in the calculations of the various measures of earnings per
share are as follows:
Unaudited Unaudited
Half year to 30 April 2025 Half year to 30 April 2024
£m Basic EPS (pence) Diluted EPS (pence) £m Basic EPS (pence) Diluted EPS (pence)
Underlying profit after tax 18.9 7.0 6.8 18.4 6.7 6.6
Non-underlying items 1.9 (6.2)
Profit from continuing operations 20.8 7.7 7.5 12.2 4.4 4.3
Profit/(loss) from discontinued operations (0.4) 4.2
Total profit after tax 20.4 7.5 7.4 16.4 6.0 5.8
Audited
Year to 31 October 2024
£m Basic EPS (pence) Diluted EPS (pence)
Underlying profit after tax 54.0 19.8 19.3
Non-underlying items (11.3)
Profit from continuing operations 42.7 15.7 15.3
Loss from discontinued operations (3.2) (1.2) (1.1)
Total profit after tax 39.5 14.5 14.2
7. DIVIDENDS
At the Annual General Meeting on 26 February 2025 the shareholders approved a
final dividend in respect of the year ended 31 October 2024 of 5.2p per
ordinary share (2024: 4.6p). This was paid on 11 April 2025 to shareholders on
the register on 21 March 2025 and totalled £14.2m (H1 2024: £12.5m).
The Board also declared an interim dividend in respect of 2025 of 2.7p per
ordinary share (2024: 2.6p) which will be paid on 5 September 2025 to
shareholders on the register on 15 August 2025. The estimated cash value of
this dividend is £7.5m (2024: £7.3m).
8. FINANCIAL INSTRUMENTS
During the six months to 30 April 2025, movements on derivative financial
instruments were primarily driven by FX rate fluctuations. At 30 April 2025
there are no significant differences between the book value and fair value (as
determined by market value) of the Group's derivative financial instruments.
The fair value of derivative financial instruments is estimated by discounting
the future contracted cash flow using readily available market data and
represents a Level 2 measurement in the fair value hierarchy under IFRS 7
Financial Instruments: Disclosures. As at 30 April 2025, the total fair value
of forward foreign exchange contracts recognised in the condensed consolidated
balance sheet were an asset of £2.3m (H1 2024: £0.6m, 2024: £0.9m), a
current liability of £0.7m (H1 2024: £1.1m, 2024: £1.5m) and a non-current
liability of £0.1m (H1 2024: £0.1m, 2024: £2.9m).
9. RELATED PARTY TRANSACTIONS
Past transactions with related parties are shown on page 168 of the Group's
2024 Annual report and accounts. There were no significant related party
transactions during the current period requiring disclosure.
10. CASH GENERATED FROM OPERATING ACTIVITIES
Unaudited Unaudited Audited
Half year to Half year to Year to
30 April 2025 30 April 2024 31 Oct 2024
£m £m £m
Operating profit from continuing operations 29.5 17.5 58.1
Amortisation of development costs 0.8 0.7 1.3
Amortisation of intangible assets arising from business combinations 0.7 1.0 2.0
Amortisation of patents and licences 0.2 - 0.3
Loss on disposal of non-current assets - - 1.7
Depreciation of property, plant and equipment 11.7 9.8 21.0
Defined benefit pension buy-in and buy-out transaction expenses 0.1 5.0 -
Other non-underlying items (3.4) 1.5 11.0
Share-based payment expense 2.3 1.9 5.8
Operating cash flows before movements in working capital 41.9 37.4 101.2
Increase in inventories (27.4) (24.6) (30.1)
Increase in trade and other receivables (26.7) (12.5) (16.9)
Increase in trade and other payables 44.2 29.1 41.8
Operating cash flow from continuing underlying operations 32.0 29.4 96.0
Discontinued operations
Cash utilised in discontinued underlying operations (0.3) (0.6) (1.5)
Cash impact of discontinued non-underlying items (0.3) (1.4) (1.5)
Net cash outflow from discontinued operations (0.6) (2.0) (3.0)
11. ANALYSIS OF NET DEBT
As at Cash Non-cash changes Exchange rate effects As at 30 April 2025
1 Nov 2024 flows
£m £m £m £m £m
Cash and cash equivalents(*) 2.0 17.3 - (0.1) 19.2
Debt due after one year (43.7) (55.0) 0.4 0.3 (98.0)
Lease liabilities (11.0) 1.3 (4.7) - (14.4)
Preference shares (0.1) - - - (0.1)
(52.8) (36.4) (4.3) 0.2 (93.3)
* Cash and cash equivalents of £19.2m (31 October 2024: £2.0m) is net of
current borrowings of £3.4m (31 October 2024: £43.0m).
The Group's principal debt facilities comprise a £180m revolving credit
facility up to December 2028 as well as a US$20m overdraft. The revolving
credit facility was refinanced in April 2025 with a syndicate of seven banks
and there are three one-year extensions at the banks' discretion.
In October 2024, the Group entered into a UK Export Finance Export Development
Guarantee Facility led by Barclays PLC for up to £80m. This is a four-year,
arm's length facility with a one-year draw down period and a three-year
amortising repayment schedule. None of the borrowings in the current or the
prior year were secured.
The Group had £170.0m (H1 2024: £69.3m, 2024: £157.4m) of undrawn borrowing
facilities at the half year.
The Group is subject to two key financial covenants, which are tested
quarterly. These covenants relate to the leverage ratio between underlying
EBITDA and net debt; and the interest cover ratio between underlying EBITDA
and finance costs. The calculation of these ratios involves the translation of
non-Sterling denominated debt using average, rather than closing, rates of
exchange. The Group was in compliance with the covenants throughout the
period. The half year leverage ratio was 0.97 times (covenant limit of 3
times) and the half year interest cover ratio was 13.94 times (covenant floor
of 4 times).
12. EXCHANGE RATES
The following exchange rates applied during the period:
Average rate Closing rate Average rate Closing rate Average rate Closing rate
H1 2025 H1 2025 H1 2024 H1 2024 2024 2024
US dollar 1.28 1.34 1.26 1.25 1.27 1.29
AU dollar 2.01 2.09 1.92 1.93 1.95 1.96
NOR krone 14.01 13.85 13.59 13.87 13.69 14.18
The translation of foreign currency items in the financial statements are
dependent on the prevailing foreign exchange rates. For the period ended 30
April 2025, a 10 percent increase in the US dollar exchange rate would have
decreased reported underlying operating profit for the first half of 2025 by
approximately £0.2m, and a 10 percent increase in the Norwegian Krone would
have decreased reported underlying profit by £0.9m. No other reasonable FX
rate fluctuations would materially impact the results.
13. DISCONTINUED OPERATIONS AND HELD FOR SALE
Total losses from discontinued operations for the period to 30 April 2025 were
£0.4m (H1 2024: £4.2m profit, 2024: £3.2m profit). Included in this balance
is the underlying loss from the EHD business of £0.3m (H1 2024: £0.5m loss,
2024: £1.3m loss) and an associated non-underlying credit of £nil (H1 2024:
£4.7m profit, 2024: £4.5m profit). Also included in discontinued
operations is £0.1m loss (H1 2024: £nil loss, 2024: £6.4m loss) relating to
an increase in provisions for a previously disposed European munitions
business.
EHD Business
In 2023 the decision was taken that the Explosive Hazard Detection ("EHD")
business would not continue to operate as a result of the US DoD's decision in
2022 to transition the HMDS Program of Record into sustainment earlier than
previously indicated. After evaluating the potential sustainment program it
was determined that in the short to medium term there was insufficient DoD
funding to make it economically viable for Chemring to continue to operate the
EHD business. Therefore the business was abandoned and treated as a
discontinued operation.
During the year to 31 October 2024 and prior to the assets being physically
disposed of, the Group received an offer to purchase the EHD business. An
asset purchase agreement was signed for the purchase of the EHD business and a
held for sale asset of £5.8m in relation to the EHD business was recognised
as at 31 October 2024, representing the fair value of the assets less costs to
sell. The business assets were preserved, and certain costs were incurred to
safeguard these assets in order to ensure that they were in a condition ready
to sell. There was also certain revenue related to the sale of spare parts for
the service of active units in operation which have occurred while the process
of selling the EHD business was ongoing, as disclosed in the table below.
Subsequent to the period ended 30 April 2025, the sale transaction has
completed and the EHD business has been sold. See note 15 for further
information.
Unaudited Unaudited
Half year to 30 April 2025 Half year to 30 April 2024
Underlying Non-underlying £m Total £m Underlying Non-underlying £m Total £m
£m £m
EHD business
Revenue 0.8 - 0.8 1.0 - 1.0
Operating loss/(profit) (0.3) - (0.3) (0.6) 5.4 4.8
Tax - - - 0.1 (0.7) (0.6)
(0.3) - (0.3) (0.5) 4.7 4.2
Other discontinued operations
Increase in provisions - (0.1) (0.1) - - -
Total loss/(profit) from discontinued operations (0.3) (0.1) (0.4) (0.5) 4.7 4.2
Audited
Year to
31 Oct 2024
Underlying Non-underlying £m Total £m
£m
EHD business
Revenue 1.8 - 1.8
Operating loss (1.5) 5.2 3.7
Tax 0.2 (0.7) (0.5)
(1.3) 4.5 3.2
Other discontinued operations
Increase in provisions - (6.4) (6.4)
Total loss from discontinued operations (1.3) (1.9) (3.2)
The cash flows from discontinued operations are presented in note 10.
14. CONTINGENT LIABILITIES
The Group is, from time to time, party to legal proceedings and claims, and is
involved in correspondence relating to potential claims, which arise in the
ordinary course of business. There are currently no material open matters.
15. EVENTS AFTER THE BALANCE SHEET DATE
SALE OF THE EHD BUSINESS
The Group completed the sale of the EHD business to Elta North America, Inc.
on 22 May 2025. Under the terms of the agreement, the Group received
consideration of $9m upon completion of the transaction.
16. PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks and uncertainties which could have a material impact on
the Group's performance and could cause actual results to differ materially
from expected and historical results have not changed significantly from those
set out in the Group's 2024 Annual report and accounts. A detailed description
of the Group's principal risks and uncertainties and the ways they are
mitigated can be found on pages 76 to 82 of the 2024 Annual report and
accounts. These risks can be summarised as:
· occupational and process safety risks;
· environmental laws and regulations risks;
· climate risks;
· market-related risks;
· political risks;
· contract-related risks;
· technology risks;
· financial risks;
· operational risks;
· people risks;
· compliance and corruption risks; and
· cyber-related risks.
Management have detailed mitigation plans and assurance processes to manage
and monitor these risks.
17. CORPORATE WEBSITE
Further information on the Group and its activities can be found on the
corporate website at www.chemring.com (http://www.chemring.com) .
INDEPENDENT REVIEW REPORT TO CHEMRING GROUP PLC
Conclusion
We have been engaged by Chemring Group PLC ("the Company") to review the
condensed set of financial statements in the half-yearly financial report for
the six months ended 30 April 2025 which comprises the Condensed Consolidated
Income Statement, the Condensed Consolidated Statement of Comprehensive
Income, the Condensed Consolidated Statement of Changes in Equity, the
Condensed Consolidated Balance Sheet, the Condensed Consolidated Cash Flow
Statement and the related explanatory notes.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
financial report for the six months ended 30 April 2025 is not prepared, in
all material respects, in accordance with IAS 34 Interim Financial Reporting
as adopted for use in the UK and the Disclosure Guidance and Transparency
Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").
Basis for conclusion
We conducted our review in accordance with International Standard on Review
Engagements (UK) 2410 Review of Interim Financial Information Performed by the
Independent Auditor of the Entity ("ISRE (UK) 2410") issued for use in the UK.
A review of interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting matters, and
applying analytical and other review procedures. We read the other information
contained in the half-yearly financial report and consider whether it contains
any apparent misstatements or material inconsistencies with the information in
the condensed set of financial statements. A review is substantially less in
scope than an audit conducted in accordance with International Standards on
Auditing (UK) and consequently does not enable us to obtain assurance that we
would become aware of all significant matters that might be identified in an
audit. Accordingly, we do not express an audit opinion.
Conclusions relating to going concern
Based on our review procedures, which are less extensive than those performed
in an audit as described in the Basis for conclusion section of this report,
nothing has come to our attention that causes us to believe that the directors
have inappropriately adopted the going concern basis of accounting, or that
the directors have identified material uncertainties relating to going concern
that have not been appropriately disclosed.
This conclusion is based on the review procedures performed in accordance with
ISRE (UK) 2410. However, future events or conditions may cause the group to
cease to continue as a going concern, and the above conclusions are not a
guarantee that the group will continue in operation.
Directors' responsibilities
The half-yearly financial report is the responsibility of, and has been
approved by, the directors. The directors are responsible for preparing the
half-yearly financial report in accordance with the DTR of the UK FCA.
As disclosed in note 1, the annual financial statements of the group are prepared in accordance with UK-adopted international accounting standards.
The directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted for use in the UK.
In preparing the condensed set of financial statements, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly financial report based on our
review. Our conclusion, including our conclusions relating to going concern,
are based on procedures that are less extensive than audit procedures, as
described in the Basis for conclusion section of this report.
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the company in accordance with the terms of our
engagement to assist the company in meeting the requirements of the DTR of the
UK FCA. Our review has been undertaken so that we might state to the company
those matters we are required to state to it in this report and for no other
purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the company for our review work, for this
report, or for the conclusions we have reached.
Kate Teal
for and on behalf of KPMG LLP
Chartered Accountants
66 Queen Square
Bristol
BS1 4BE
3 June 2025
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