FOR IMMEDIATE RELEASE                                                                                      1 AUGUST 2023

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

COMMENCEMENT OF £50 MILLION SHARE BUYBACK PROGRAMME

Chemring is pleased to announce the commencement of a Share Buyback Programme (the "Buyback Programme") with effect from 1 August 2023 to purchase ordinary shares of 1 pence each ("Ordinary Shares") in the capital of the Company up to a maximum aggregate consideration payable by the Company of £50 million.

The Group's disciplined approach to capital allocation, which is reviewed by the Board on a regular basis, prioritises both organic and inorganic investment, a growing and sustainable dividend, and a prudent approach to leverage.

The Company has a strong balance sheet, with leverage of 0.3x net debt to EBITDA at 30 April 2023, and a robust pipeline of organic and inorganic investment opportunities. The Board believes that the Buyback Programme, by reducing the Company's share capital, will facilitate an improved capital structure and deliver value for shareholders, whilst still maintaining a strong balance sheet.

The Buyback Programme is consistent with the Group's approach to capital allocation and reflects the Board's continued confidence in the future prospects of the Group.  The Group intends to continue assessing other organic and inorganic investment opportunities for the duration of the buyback, in line with the Group's wider growth strategy.

The sole purpose of the Buyback Programme is to reduce the Company's share capital and it is intended that Ordinary Shares purchased shall be cancelled. The Buyback Programme will end on 31 July 2024.

The Group will seek to make market purchases of Ordinary Shares at a price or prices that the Group deems to be good value for shareholders. In accordance with the Company's general authority to repurchase Ordinary Shares granted by its shareholders at the Annual General Meeting held on 15 March 2023 (the "General Authority"), the Buyback Programme will purchase no more than 28,358,308 Ordinary Shares. 

Any purchases of Ordinary Shares by Chemring in relation to the Buyback Programme will be conducted in accordance with: the General Authority; any further approvals to purchase shares as may be granted by its shareholders from time to time; the Market Abuse Regulation 596/2014 as it forms part of domestic law by virtue of section 3 of the European Union (Withdrawal) Act 2018 (as amended); and Chapter 12 of the Listing Rules.

The Company has entered into an irrevocable, non-discretionary instruction with Investec Bank plc ("Investec") to conduct the Buyback Programme on its behalf and to make trading decisions under the Buyback Programme independently of the Company. The Company has a right to terminate this instruction subject to being in compliance with certain regulatory conditions.

The Company will make further announcements in due course following the completion of any repurchases. There is no guarantee that the Buyback Programme will be implemented in full or that any Ordinary Shares will be repurchased by the Company. The Buyback Programme will not impact the Company's existing Ordinary Share dividend policy, which will continue unaffected through the regular awards of interim and final dividends.

At the time of this announcement, the Company's share capital comprises 283,609,773 Ordinary Shares with voting rights and 62,500 cumulative preference shares with no voting rights, save in specified limited circumstances. The total number of voting rights in the Company is therefore 283,609,773.

Michael Ord, Group Chief Executive of Chemring, commented:

"In recent years Chemring has been focused on building a stronger, higher quality and more resilient business, in doing so it has built a strong and deployable balance sheet which has provided the Group with increased optionality. The share buyback programme of up to £50m that we have announced today provides us with additional flexibility to deliver value for our shareholders and to our commitment to balance near-term performance with longer-term growth and value creation."

-ENDS-

For further information:

Rupert Pittman           Group Director of Corporate Affairs,                        01794 463401

Chemring Group PLC             

James McFarlane        MHP Communications                                                020 3128 8100

Ollie Hoare

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 2,600 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