TIDMCHG
RNS Number : 7511Z
Chemring Group PLC
17 March 2017
FOR IMMEDIATE RELEASE 17 MARCH 2017
CHEMRING GROUP PLC ("Chemring", the "Group" or the
"Company")
Annual General Meeting - trading update for the four month
period ended 26 February 2017
Chemring Group PLC today issues an update on current trading and
outlook, to coincide with the Company's Annual General Meeting.
Current trading
The Group has started the year positively, continuing the
momentum of the second half of last year. Order intake in the first
four months of the year was in line with the Board's expectations
at GBP127.4m (28 February 2016: GBP88.9m).
Revenue during the four month period to 26 February 2017 was
GBP145.6m (28 February 2016: GBP106.5m), reflecting both the
significant weakening of sterling and the fulfilment of contracts
in the Energetics Systems division.
The order book at 26 February 2017 was GBP556.9m (28 February
2016: GBP596.3m, 31 October 2016: GBP592.9m), the reduction since
31 October 2016, half being attributable to the weaker dollar
against sterling and half to stable operational performance
resulting in some order backlog being cleared.
Balance sheet
Net debt at 26 February 2017 was GBP146.4m (28 February 2016:
GBP141.4m, 31 October 2016: GBP87.6m). The increase in net debt
since 31 October 2016 reflects the investment in working capital
required to fund the execution of contracts in the Energetics
division, which continue to perform well and, assuming an extension
of the existing letter of credit is agreed, are expected to be
strong contributors to 2017 performance. This investment is
expected to be sustained at the half year, but partially reverse in
the second half of the financial year.
Dividend
The Company announced on 19 January 2017 that, in view of the
Group's improved trading performance for 2016, the Board intended
to pay a final dividend of 1.3p in respect of the year ended 31
October 2016. This year's notice of AGM omitted the resolution
seeking shareholder approval for the payment of a final dividend of
1.3p per ordinary share. Accordingly, the Board will, in accordance
with its powers under the Company's articles of association, today
declare a dividend in place of the proposed final dividend. The
dividend will not require the approval of shareholders. The amount
of this dividend shall be 1.3p per ordinary share. This dividend
will be paid on 18 May 2017 to all shareholders who were on the
Register of Members on 28 April 2017. The amount of the dividend
and the timing of payment will therefore be the same as the final
dividend previously proposed.
Outlook
The Board's expectations for trading for the full year remain
unchanged. As expected, the seasonality of the business and
customer requirements will mean that trading performance and
cashflows will be weighted to the second half, but this is expected
to be less pronounced than in the prior year.
Interim results for the six months ended 30 April 2017 will be
announced on 22 June 2017.
- ENDS -
For further information:
Michael Flowers Chief Executive, Chemring Group PLC +44 (0)1794 833901
Andrew Lewis Group Finance Director, Chemring Group PLC +44 (0)1794 833901
Rupert Pittman Group Director of Corporate Affairs, Chemring Group PLC +44 (0)1794 833901
James White MHP Communications +44 (0)20 3128 8100
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.
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 now 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, Chemring has the agility to rapidly react
to urgent customer needs
This information is provided by RNS
The company news service from the London Stock Exchange
END
AGMUNRKRBKAOAAR
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