Disposal of Chemring Defence

FOR IMMEDIATE RELEASE                                                                                                   24 June 2019

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

Disposal of Chemring Defence

Chemring today announces the completion of the sale of its military pyrotechnics business Chemring Defence UK Limited ("CDUK") to PWD Group Limited ("PWD") for a nominal cash consideration.  CDUK, located in Derby, manufactures military pyrotechnics that are primarily used for illumination, signaling, screening, battlefield simulation and training. In the year ended 31 October 2018, CDUK generated revenues of £11.8 million and an operating loss of £0.7 million. The business was treated as discontinued in the Group's 2018 financial statements and for the six months to 30 April 2019 was loss making.

A process to exit the Group's remaining commoditised energetics business in Florida is ongoing. The Group will provide further updates when appropriate.

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For further information:

 Notes to editors

1.         In November 2018 the Group announced that the future focus of its Energetics segment would be on its niche energetic devices and materials businesses in Chicago, Scotland and Norway. The Group also announced it would exit the commoditised energetics businesses in Derby and Florida; these businesses were treated as discontinued in the 2018 financial statements, and in April the Group announced the sale of Chemring Military Products in Florida.

2.         About Chemring

·      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 now organised under two strategic product segments:  Countermeasures & Energetics, and Sensors & Information

·      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, Chemring has the agility to rapidly react to urgent customer needs

www.chemring.co.uk

Cautionary statement

This announcement contains unaudited information based on management accounts and 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.