18 January 2018

As reportedAt 2016 exchange rates
Change 2017# Change 2017 2016
Continuing operations
Revenue + 15% £547.5m + 11%£528.0m £477.1m
Underlying EBITDA* + 10% £81.0m + 9%£80.7m £73.8m
Underlying operating profit* + 14% £55.4m + 13%£55.0m £48.5m
Underlying profit before tax* + 30% £44.1m + 30%£44.1m £34.0m
Statutory profit before tax - 50% £4.0m £8.0m
Underlying earnings per share* + 25% 12.9p 10.3p
Dividend per share +131% 3.0p 1.3p
Net debt - 9% £80.0m £87.6m

Highlights

  • Safety, operational and financial performance improvements continue
  • Operating profit* growth of 14% to £55.4m, and EPS* increase of 25% to 12.9p
  • Continued progress on US counter-IED, Chemical and Biological Detection Programs of Record
  • Operational Excellence Programme delivering further improvements in safety, knowledge sharing, gross margins and cash generation
  • Net debt of £80m reflected solid cash generation across the Group, offset by the investment in working capital in the Energetics segment and the normalisation of supplier payment practices
  • Board recommending a final dividend of 2.0p per ordinary share, giving a total dividend of 3.0p per ordinary share (2016: 1.3p)
  • Order book at year end of £478m (2016: £593m), fall partly due to FX and fulfilment of large 40mm contracts in Energetics segment. £360m currently due as revenue in FY18, 70% coverage of FY18 targeted revenue

Michael Flowers, Chemring Group Chief Executive, commented:

'In 2017 the Group continued to build on its improved performance of recent years, delivering strong results that exceeded expectations from both a financial and operational performance perspective. Significant progress has been made on the Operational Excellence Programme, with tangible sustainable results already delivered and further improvement in the pipeline.

'Improvements from Countermeasures and Sensors, together with the Operational Excellence Programme, are due to offset scheduled reductions in Energetics. The Group began the year with approximately £360m of orders due to be recognised as revenue in FY18, representing 70% of targeted FY18 revenues. FY18 trading performance is again likely to have a significant second half weighting.

'Order intake and revenue continues to be solid, and for the longer term, continued progress has been made on all three US Programs of Record, particularly HMDS.

'The Board's expectations for the Group's FY18 performance remain unchanged based on current FX rates.'

For further information:

Rupert Pittman Group Director of Corporate Affairs, Chemring Group PLC 01794 833901
Andrew Jaques
James White
MHP Communications 020 3128 8100

View the full press release in PDF format.

Chemring Group plc published this content on 18 January 2018 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 18 January 2018 07:09:08 UTC.

Original documenthttp://www.chemring.co.uk/media/press-releases/2018/18-01-2018.aspx

Public permalinkhttp://www.publicnow.com/view/0C75B8D2DFE56304A3E9720EC3366DF457A62B3C