REG - Chemring Group PLC - Update on Countermeasure Deliveries

ChemringAnnouncement

17/10/2023 07:00

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RNS Number : 2946Q  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 (http://www.chemring.co.uk)

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