FOR IMMEDIATE RELEASE 12 AUGUST 2018
CHEMRING GROUP PLC
INCIDENT AT CHEMRING COUNTERMEASURES
Chemring Group PLC ("Chemring" or "the Group") confirms that at approximately 5pm on Friday 10th August, an incident occurred in a flare manufacturing building at the Chemring Countermeasures ("CCM") facility, near Salisbury.
Tragically, one employee was fatally injured and another employee was badly injured and is currently receiving treatment in hospital. The emergency services attended the scene and the incident was quickly brought under control.
A full and immediate investigation into the cause of the incident has been launched in co-operation with the local regulatory authorities.
The incident caused damage to parts of CCM's manufacturing operations. Production at the site is currently suspended and a detailed analysis of the possible impact of the incident on the Group's financial prospects has begun.
The impact on our 2018 and 2019 financial years cannot be accurately quantified at this stage as it will be dependent on insurance recoveries, the timeline for the investigation to be completed and the site to re-open, remediation work to be completed and at what rate production resumes.
CCM's deliveries to customers in the final quarter of the financial year ending 31 October 2018 were previously expected to be £25m and to generate a contribution of £15m and the Group's FY18 underlying operating profit is now likely to be approximately £10m - £20m lower than previous expectations, with a corresponding impact on the Group's operating cash flow and net debt.
A further update will be provided when the Group publishes its next trading statement, which is expected on 4 September 2018.
-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
A conference call with investor and analysts will be held at 8.30am on Monday 13 August. Dial in details are as follows:
UK dial-in number (landline use): 0844 4 73 33 26
UK dial-in number (mobile use): 0330 336 0315
UK Freephone dial-in number: 0800 229 1131
Anywhere in the world +44 844 4 73 73 73 or +49 1803 001 178 (international rates apply).
US dial-in number: +1 917 793 0005
Participant PIN: 989622
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
