FOR IMMEDIATE RELEASE 1 NOVEMBER 2019
CHEMRING GROUP PLC ("Chemring" or the "Company")
CONTRACT AWARD AND YEAR-END UPDATE
Contract award - Aerosol and Vapor Chemical Agent Detector "AVCAD"
Following a successful Critical Design Review earlier this month, Chemring is pleased to announce the receipt of a contract award for a further 75 units under the US DoD's competitive AVCAD Program of Record. This award, part of the Engineering Manufacturing Development phase under the Next Generation Chemical Detector family of systems, was exercised as an option under the previously announced contract for AVCAD baseline product development with multi-year production options. These units are expected to be delivered in Chemring's 2020 financial year.
Year-end update
With continued positive momentum, trading for the year ending 31 October 2019 has ended robustly and the Board's expectations are now for adjusted operating profit to be slightly ahead of expectations. With lower interest and taxation charges, adjusted earnings per share is also expected to be ahead of expectations.
The continued focus on the management of working capital, cash generation and the reduction of intra period net debt volatility has delivered positive results. Net debt at year end is now expected to be approximately £76m.
FY19 Results
Chemring's FY19 results are scheduled to be announced on 16 December 2019.
-ENDS-
For further information:
Rupert Pittman Group Director of Corporate Affairs, 01794 833901
Chemring Group PLC
Andrew Jaques MHP Communications 0203 128 8100
Oliver Hughes
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 now 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.co.uk
