Statement re CFC Finance Company Exemption

RNS Number : 4221O

Chemring Group PLC

08 October 2021

 

FOR IMMEDIATE RELEASE       8 OCTOBER 2021

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

Controlled Foreign Company ("CFC") Finance Company Exemption

Chemring is pleased to announce that it has received confirmation from HM Revenue & Customs that their enquiry into Chemring's participation in the UK's Controlled Foreign Company Finance exemption has been closed.

HMRC have advised that they have formed a view that Chemring was not a beneficiary of State Aid in the periods ending 2013 to 2018. Furthermore HMRC have confirmed that the European Commission have indicated that they agree with HMRC's conclusion and the issue as to whether the Group benefited from State Aid is regarded as closed.

The Group's 2020 Annual Report & Accounts included a contingent liability disclosure in Note 34 indicating a range of possible outcomes of £nil to £15m plus interest. In light of this announcement this contingent liability has now been retired.

-ENDS-

For further information:

Rupert Pittman            Group Director of Corporate Affairs,  01794 463401

Chemring Group PLC 

Andrew Jaques  MHP Communications    020 3128 8170

James Bavister

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 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 2,300 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 sectors: 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

 

END

 

 

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