Chemring Group PLC £278m Contract Wins

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

 

 

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END

 

 

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