TIDMCHG
RNS Number : 9576S
Chemring Group PLC
15 March 2023
FOR IMMEDIATE RELEASE 15 MARCH 2023
CHEMRING GROUP PLC ("Chemring", the "Group" or the
"Company")
AGM Update
Chemring issues the following update announcement ahead of the
Company's Annual General Meeting taking place later today.
Current trading and outlook
Both sectors have performed in line with the Board's
expectations since the beginning of the current financial year and
the Board's expectations for 2023 performance are unchanged. As
previously highlighted the Group's trading performance and cash
generation in 2023 is expected to have a heavier weighting towards
the second half due to order intake delays in 2022 as a result of
the US Government's extended Continuing Resolution.
The Group continues to manage delays in customer procurements,
labour availability, and other inflationary pressures including
energy costs and wage inflation. Where appropriate the Group is
mitigating the impact of these pressures by passing through costs
and generating additional operational efficiencies where
possible.
The Group remains well positioned for growth with end-markets in
both sectors aligned to areas of increased customer activity. The
Group continues to develop and deliver mission-critical
technologies, products, and services, which our customers deploy to
meet the challenges of an increasingly contested and volatile
world. The international security environment is driving strong
demand in areas of active cyber-defence, operational mission
support and open-source intelligence ("OSINT") services, and space
launch systems. Demand also continues to grow for propellant and
energetic materials, and high-integrity missile sub-components.
Orders
Having started the financial year with order cover of 86% our
expected 2023 revenue is now 90% (25 February 2022: 89%) covered by
revenue in the period to date and the current order book, split 99%
(25 February 2022: 99%) in Countermeasures & Energetics and 76%
(25 February 2022: 73%) in Sensors & Information. The order
book at 26 February 2023 stood at GBP677m (25 February 2022:
GBP476m).
In our Sensors & Information sector, Roke has continued its
positive momentum into 2023 with strong order intake across all
business areas with a notable highlight being the progress made in
the Roke Futures business area which has seen order intake of
GBP24m in the last twelve months. Roke Futures delivers technology
solutions to clients outside of National Security and Defence
markets and is growing accounts with customers including Rolls
Royce, Waygate Technologies, and Vodafone. It is also developing
accounts in adjacent markets such as digital healthcare.
In the US, our sensors business received a third option quantity
exercised under the sole source $99m Indefinite Delivery /
Indefinite Quantity contract for the Enhanced Maritime Biological
Detector program. The option value was $15.3m and will see
deliveries being made in 2023 and 2024.
In the Countermeasures & Energetics sector we are seeing
increasing levels of activity and demand in the propellants and
energetic materials markets as customers re-evaluate their
operational usage and stockpile requirements associated with
traditional defence capabilities. This is particularly evident at
our Scottish and Norwegian businesses, both of which have record
order books, where customers are signalling a significant increase
in demand in the coming years in response to the conflict in
Ukraine and the evolving threat environment.
Elsewhere in the Energetics sector, our Chicago business
continues to make good progress in securing new orders with
commercial space launch providers, furthering our position as a
leading supplier of mission critical components into the
strategically important space launch and space exploration
markets.
Interim results date
The Group will report its interim results for the six months
ended 30 April 2023 on 6 June 2023.
- ENDS -
For further information:
Rupert Pittman Group Director of Corporate Affairs, 01794 463401
Chemring Group PLC
James McFarlane MHP Communications 020 3128 8100
Ollie Hoare
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 FTSE-250 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 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
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END
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March 15, 2023 03:00 ET (07:00 GMT)
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