Press Kit

Chemring Group PLC

Chemring is a global group of companies that specialises in the manufacture of energetic material products and advanced expendable countermeasures. Chemring Group employs over 4000 people in the UK, US, France, Germany, Italy, Norway, Spain, Belgium and Australia and operates in four main market segments: Counter-IED, Countermeasures, Pyrotechnics and Munitions and provides solutions for highly demanding customer requirements in defence, security and safety markets.

Results for the year ended 31 October 2011

	2011 £m	2010 £m
Continuing operations:
Revenue	745.3	597.1
Underlying operating profit	141.8	137.5
Net Finance expense	(16.3)	(18.9)
Share of post-tax results of associate	0.1	0.1
Underlying profit before tax	125.6	118.7
Profit before tax	90.8	89.1
Underlying earnings per share #	52.1p	49.8p
Basic earnings per share #	39.8p	37.8p
Dividend per share #	39.4p	37.4p

# Restated figures to reflect division of each 5p ordinary share into five 1p ordinary shares on 28 March 2011.

Notes:

1. All comparisons are for the year to 31 October 2010.
2. Before acquisition related costs, restructuring and incident costs, provision release, (gain)/loss on fair value movements on derivatives and intangible amortisation arising from business combinations
3. The final dividend of 10.8p per ordinary share will be paid on 13 April 2012 to holders on the register at 23 March 2012. The ex-dividend date will be 21 March 2012. The total dividend for the financial year to 31 October 2011 was 14.8p (2010: 11.8p) per ordinary share.

Financial Highlights:

• Revenue up 25% to £745.3 million (2010: £597.1 million)
• Organic revenue growth~ of 9% in difficult market
• Non-NATO revenues up 81% to 29% of total Group revenue (2010: 20%)
• Year end order book up 9% at £878.3 million (2010: £803.3 million)
• Order book today at £980 million, up 9% on January 2011
• Underlying profit before tax* up 6% to £125.6 million (2010: £118.7 million)
• Underlying earnings per share* up 5% at 52.1p (2010: 49.8p)
• Profit before tax £90.8 million (2010: £89.1 million)
• Basic earnings per share 39.8p (2010: 37.8p)
• Dividend per ordinary share up 25% at 14.8p (2010: 11.8p)
• Underlying operating cash flow* £124.6 million (2010: £128.0 million^#)
• Net debt of £262.7 million (2010: £307.5 million)

Group Sales Analysis

Divisional Highlights

Counter-IED

• NIITEK increased revenue by 24% to £126.9 million, with 77 HMDS units delivered to the US Army
• Chemring Ordnance awarded multi-year contract, worth up to $150 million, to supply the Mk7 Anti-Personnel Obstacle Breaching System (APOBS) to the US Army and US Marine Corps
• Chemring Detection Systems acquired in July and performed in line with expectations

Countermeasures

• Full year contribution from Roke
• Expendable countermeasures revenues declined as expected
• Kilgore restarted production and revenue reached new record

Pyrotechnics

• Reduced revenues for illuminating products in both UK and US markets
• M992 pyrotechnic 40mm round named by US Army as one of top ten inventions
• Margin maintained in line with last year

Munitions

• Revenue more than doubled to £237 million
• Demand for 90mm and 40mm grenade ammunition almost triples
• Revenue from naval ammunition grows by 122%

Please download the full Chemring Group Brochure 2011

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