Chemring Group PLC Post Close Statement and Contract Win (5788Y)

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RNS Number : 5788Y

Chemring Group PLC

10 May 2019

10 May 2019

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

Post Close Statement and Contract Win

Chemring issues the following update having entered its close period in respect of the six months ended 30 April 2019.

Outlook

The Board's full year expectations for 2019 are unchanged. As a result of insurance recoveries in respect of the incident at the UK Countermeasures site which occurred in August 2018 being received earlier than previously anticipated, the H1/H2 weighting of continuing underlying operating profit for 2019 is now expected to be approximately 30%:70% (previous guidance 15%:85%).

Contract win

Chemring is also pleased to announce that its Australian subsidiary has been awarded two significant contracts: an Undefinitised Contract Action with a Not To Exceed value of US$60.4m and a further (Directed Sole Source) award for US$6.5m. The contracts are from the US DoD to supply countermeasures to the Royal Australian Air Force, US Navy and Foreign Military Sales in support of the F-35 Joint Strike Fighter and other platforms. This award follows a multi-year effort to establish Chemring Australia as a qualified supplier for F-35 countermeasures.

Interim results date

The Group will report its interim results for the six months ended 30 April 2019 on 5 June 2019.

- ENDS -

For further information:

 
Rupert Pittman   Group Director of Corporate Affairs, Chemring Group PLC   [phone] 
Andrew Jaques 
 Peter Hewer     MHP Communications                                        [phone] 
 

Cautionary statement

This announcement contains unaudited information based on management accounts and 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 aerospace, defence and security markets

-- Employing approximately 2,500 people worldwide, and with production facilities in four countries, Chemring meets the needs of customers in more than fifty countries

-- Chemring is now organised under two strategic product segments: Countermeasures & Energetics, and Sensors & Information

-- 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, Chemring has the agility to rapidly react to urgent customer needs

www.chemring.co.uk

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May 10, 2019 02:00 ET (06:00 GMT)