Trading Update

RNS Number : 7865P

Chemring Group PLC

05 September 2017

 

FOR IMMEDIATE RELEASE                                                                                              5 SEPTEMBER 2017

CHEMRING GROUP PLC

TRADING UPDATE

Chemring Group PLC ("Chemring" or "the Group") today issues a trading update for the four month period from 1 May to 31 August 2017.

Current trading

Revenue in the period was £156.7 million, an increase of 13.4% compared with £138.2 million in the same period last year.

Trading in the period has progressed as planned and the Board's current expectations for the year ending 31 October 2017 remain unchanged. 

The Group's order book at 31 August 2017 was £541.8 million, 2.6% lower than the order book of £556.2 million at 30 April 2017. Recent orders received, for delivery in FY18, give us increased confidence in the Group's prospects in the near term.

Segmental update

The period has seen a particularly strong performance from the countermeasures segment, with orders totalling £56.6 million received, operational performance improving and the second Philadelphia plant successfully closed. The majority of these orders were from the US Government for a range of requirements.

In Sensors, trials of enhanced Husky Mounted Detection Systems have been successfully completed in theatre and we are currently working with the customer base to define the next phase of fleet refurbishment and upgrade and next generation development requirements.

Performance across the entire Energetics segment has been robust through the period. Of particular note, Chemring Ordnance has been awarded a contract for the supply of 40mm ammunition to an international customer, valued at approximately US$30.0 million. The Group is currently awaiting the receipt of the cash advance payment and associated export licences, which are expected shortly. Subject to the receipt of this documentation, deliveries are expected to be made in the final quarter. The associated revenue and profit is assumed within our FY17 outlook comment above.

Financial position

Net debt at 31 August 2017 was £125.8 million (30 April 2017: £111.7 million). As expected, the forecast phasing of trading in FY17 results in a weighting of operating cash generation to Q4.

-ENDS-

For further information:

Rupert Pittman            Group Director of Corporate Affairs,                             01794 833901

                                    Chemring Group PLC              

Andrew Jaques            MHP Communications                                                   0203 128 8100

James White              

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 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 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, 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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