FOR IMMEDIATE RELEASE                                                                                                           30 JUNE 2025

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

ACQUISITION OF LANDGUARD SYSTEMS

Chemring is pleased to announce the conditional acquisition of Landguard Nexus Limited ("Landguard") and its wholly owned subsidiaries Landguard Systems Inc and Landguard Systems Limited (collectively the "Landguard Group") (the "Acquisition"). The Acquisition creates further opportunities for Chemring to enhance the growth of its Roke business.

Acquisition overview

Landguard, based in Fareham, Hampshire, designs, manufactures, and supports, software defined radio ("SDR") systems and associated security products that enable defence, government, and law enforcement customers to protect crucial operational assets. These specialist systems include high performance tracking products operating across satellite communications, cellular networks and other radio frequency technologies, as well as SDR transceivers which provide flexible and reprogrammable radio capabilities incorporating the latest interoperability standards.

Landguard's operational agility, and unique technologies, enables it to satisfy customer requirements across the complete product lifecycle of design, manufacturing, and after-sales operational support. The acquisition brings thirty specialist engineers to Roke in addition to a suite of market leading products, unique intellectual property and a range of complementary customer relationships. The current owner-managers of Landguard are expected to remain with Chemring following completion of the Acquisition.

The consideration of up to £20m will be satisfied by a £14m cash payment on completion, funded from Chemring's existing bank facilities, and cash earnouts totalling up to £6m subject to certain performance targets. In the year ended 31 January 2025, Landguard's turnover was c.£7m. The acquisition is expected to be marginally earnings enhancing in the year ending 31 October 2026.

Completion of the transaction is subject to approval under the UK National Investment and Security Act.

Opportunity and rationale

The Acquisition creates further opportunities for Chemring to enhance and accelerate growth of its Roke business whilst driving strong operational synergies. The combination of Roke's Cyber and Electromagnetic Activities ("CEMA") pedigree and Landguard's modular, high-performance technologies creates a unique UK Sovereign portfolio of Defence, National Security and Law Enforcement products and capabilities that can be immediately shared with Roke's existing Defence and National Security customers and also used to enhance its significant (>£300 million) international sales pipeline.

Michael Ord, Chief Executive of Chemring, commented:

"The acquisition of Landguard further enhances Roke's significant operational capabilities and is further evidence of Chemring delivering its strategy of delivering growth through a combination of organic investment and bolt-on acquisitions in high-priority defence and national security markets."

ENDS

For further information:

Rupert Pittman           Group Director of Corporate Affairs,                        01794 463401

                                      Chemring Group PLC             

James McFarlane        MHP Group                                                                 07584 142665

Ollie Hoare                                                                                                         07817 458804

Cautionary statement

This announcement may contain 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 FTSE250 global business that specialises in the manufacture of high technology products and the provision of services to the defence, security and aerospace markets

·   Employing approximately 2,700 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.