AGM Statement

RNS Number : 8420H

Chemring Group PLC

19 March 2015

 



FOR IMMEDIATE RELEASE                                                                                                     19 MARCH 2015

CHEMRING GROUP PLC

ANNUAL GENERAL MEETING TRADING UPDATE

Chemring Group PLC ("Chemring" or "the Group") today issues an update on current trading and outlook, ahead of the Group's Annual General Meeting taking place later today.

Current trading

Revenue during the three-month period to 31 January 2015 was £61.5 million, compared with £92.8 million in the same period last year. This was principally due to delays in order intake in the Sensors & Electronics segment, and the conclusion of Husky Mounted Detection System deliveries in 2014.

Encouragingly, order intake was 28.0% higher than the comparative period, and included an increased penetration of non-NATO markets. The order book at 31 January 2015 was £530.2 million (2014: £447.7 million), of which 52.4% is due for delivery in the current financial year. The Group continues to expect to receive a number of Sensors & Electronics contracts from Middle East customers for delivery in the current financial year.  

Current financial position

Net debt at 31 January 2015 was £162.1 million (31 January 2014: £253.8 million, 31 October 2014: £135.6 million). £10.0 million of the increase since 31 October 2014 arose on the translation of US dollar-denominated debt.

Outlook

Chemring's focus on operational performance across all its manufacturing businesses will continue to deliver efficiency improvements. The Board's expectations for the full year remain unchanged, though delays to order intake in the early part of the financial year for the Sensors & Electronics segment have led to an increased weighting towards the second half.

-ENDS-

 For further information:

Michael Flowers          Group Chief Executive, Chemring Group PLC             01794 833901

Steve Bowers               Group Finance Director, Chemring Group PLC           01794 833901

Rupert Pittman             Group Director of Communications and                    01794 833901

 Investor Relations, Chemring Group PLC                   

James White                 MHP Communications                                               0203 128 8100

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 services to the aerospace, defence and security markets

·       Employing approximately 3,000 people worldwide, and with production facilities in four countries, Chemring meets the needs of customers in more than fifty countries worldwide

·       Chemring is now organised under three strategic product segments:  Countermeasures, Sensors & Electronics, and Energetic Systems

·       Chemring has a diverse portfolio of products that deliver high reliability solutions to protect people, platforms, mission 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

 

END

 

 

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