FOR IMMEDIATE RELEASE 31 AUGUST 2016
CHEMRING GROUP PLC
Chemring Group PLC ("Chemring" or "the Group") today issues a Q3 update.
The Board's expectations for FY16 full year trading remain unchanged.
Revenue in the three month period to 31 July 2016 was £109.1 million, an increase of 20.2% compared with £90.8 million in the same period last year. Trading on the 40mm ammunition contract to an end user in the Middle East is progressing in line with our expectations.
During the period Chemring received a $3.1 million research and development contract for the US Next Generation Chemical Detection ("NGCD") Program of Record. Chemring has now progressed to the prototype phase on all three variants of this long-term programme.
The Group's order book at 31 July 2016 was £665.9 million, 12.6% higher than the order book of £591.3 million at 30 April 2016. The recent weakening of sterling, principally against the US dollar, accounts for £50.5 million of the growth in order book.
Net debt at 31 July 2016 was £147.0 million (30 April 2016: £114.4 million). Of the increase, £11.3 million relates to the translation of US dollar denominated debt. As expected, the forecast phasing of trading in FY16 results in a weighting of operating cash generation to Q4.
On 29 June 2016 the Group announced that Steve Bowers, Group Finance Director, had informed the Board of his intention to leave the Group. It has now been agreed that Steve will leave the Group on 30 September 2016 and his role will be covered on an interim basis by Andrew Davies, Deputy Group Finance Director. The process of identifying a new Group Finance Director is progressing and a further announcement will be made in due course.
For further information:
Michael Flowers Group Chief Executive, Chemring Group PLC 01794 833901
Steve Bowers Group Finance Director, Chemring Group PLC 01794 833901
Rupert Pittman Group Director of Corporate Affairs, 01794 833901
Chemring Group PLC
Andrew Jaques MHP Communications 0203 128 8100
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 2,700 people worldwide, and with production facilities in four countries, Chemring meets the needs of customers in more than fifty countries
· Chemring is organised under 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
This information is provided by RNS