3 JUNE 2025

CHEMRING GROUP PLC

("Chemring" or "the Group" or "the Company")

 

INTERIM RESULTS FOR THE SIX MONTHS TO 30 APRIL 2025

Record order book, full year expectations unchanged, strong long-term prospects

 

	As reported		At H1 2024 exchange rates
	H1 2025	Change	H1 2025	Change	H1 2024
Continuing operations
Order book (£m)	1,303.8	+25%	1,327.9	+28%	1,040.6
Order intake (£m)	488.0	+42%	496.6	+44%	344.5
Revenue (£m)	234.3	+5%	236.0	+6%	223.4
Underlying EBITDA*(£m)	39.8	+12%	40.4	+14%	35.5
Underlying operating profit* (£m)	27.1	+8%	27.5	+10%	25.0
Underlying profit before tax* (£m)	24.1	+6%	24.6	+8%	22.7
Underlying diluted earnings per share* (pence)	6.8	+3%	7.0	+6%	6.6
Statutory operating profit (£m)	29.5	+69%	29.9	+71%	17.5
Interim dividend per share (pence)	2.7	+4%			2.6
Net debt at 30 April (£m)	93.3	+24%	93.6	+24%	75.3

 

Key highlights

·  Record H1 order intake of £488m and order book of £1,304m, the highest in Chemring's history, providing excellent medium-term revenue coverage

·   H1 2025 was in line with the Board's expectations: - Revenue growth of 5%, driven by strong performance within Countermeasures & Energetics, up 20.4% - Underlying operating profit margin improving to 11.6% (H1 2024: 11.2%) ·   Good progress made on organic growth projects to date, with £46.1m of capex spent in total during the period

·  Net debt was £93.3m (H1 2024: £75.3m), with the increase as expected given the investment in growth capex. Net debt to underlying EBITDA of 0.95 times (H1 2024: 0.85 times) ·   Interim dividend per share of 2.7p, up 4% (H1 2024: 2.6p)

·   £3.3m deployed into the £40m share buyback programme announced on 26 February 2025 ·  The Board's expectations for 2025 are unchanged, with a similar H2 weighting of operating profit to last year (as previously guided). Approximately 85% (H1 2024: 96%) of expected 2025 revenue was delivered or in the order book at 30 April 2025 ·  The Group's longer-term growth prospects are strong, underpinned by robust customer demand for our market-leading products and services, high barriers to entry across our market segments, and a high quality pipeline of organic and inorganic growth opportunities

Michael Ord, Chemring Group Chief Executive, commented:

 

"Our 2024 momentum has continued into this year with another period of record order intake and an order book of over £1.3bn, increasing 2025 order cover to 85%. With this robust demand and trading environment the Board's expectations for the full year are unchanged. 

"Operational and trading performance has been in line with our expectations, with improving returns for our shareholders underpinned by solid cash conversion. Both sectors benefitted from the receipt of several significant orders in the period, evidencing confidence in our market leading products and services.

"With growing geopolitical uncertainty resulting in increased defence expenditure, particularly across NATO, the Group is well positioned, with a strong and sustainable platform to increase revenue to £1bn by 2030."

Notes:

* All profit and earnings per share figures in this news release relate to underlying business performance (as defined below) from continuing operations unless otherwise stated.

 

The principal Alternative Performance Measures ("APMs") presented are the underlying measures of earnings which exclude the amortisation of acquired intangibles, gain or loss on the movement on the fair value of derivative financial instruments, exceptional items and the associated tax impact of these. The directors believe that these APMs assist with the comparability of information between reporting periods as well as reflect the key performance indicators used within the business to measure performance. The term underlying is not defined under IFRS and may not be comparable with similarly titled measures used by other companies.

 

EBITDA is defined as operating profit before interest, tax, depreciation and amortisation. Reference to constant currency relates to the re-translation of H1 2025 financial information at the H1 2024 exchange rates to reflect the movement excluding the impact of foreign exchange. The exchange rates applied are disclosed in note 12.

 

A reconciliation of underlying measures to statutory measures is provided below:

Group - continuing operations:	Underlying	Non-underlying	Statutory
EBITDA (£m)	39.8	3.1	42.9
Operating profit (£m)	27.1	2.4	29.5
Profit before tax (£m)	24.1	2.4	26.5
Tax charge on profit (£m)	(5.2)	(0.5)	(5.7)
Profit after tax (£m)	18.9	1.9	20.8
Basic earnings per share (pence)	7.0	0.7	7.7
Diluted earnings per share (pence)	6.8	0.7	7.5
Group - discontinued operations:
(Loss)/profit after tax (£m)	(0.3)	(0.1)	(0.4)
Segments - continuing operations:
Sensors & Information EBITDA (£m)	19.5	(2.3)	17.2
Sensors & Information operating profit (£m)	16.1	(2.6)	13.5
Countermeasures & Energetics EBITDA (£m)	29.7	-	29.7
Countermeasures & Energetics operating profit (£m)	20.4	(0.4)	20.0

 

The adjustments comprise:

·   amortisation of acquired intangibles of £0.7m (H1 2024: £1.0m, 2024: £2.0m)

·  gain on the movement in the fair value of derivative financial instruments of £5.5m (H1 2024: £1.1m gain, 2024: £2.0m loss) ·   exceptional items of £2.4m (H1 2024: £7.6m, 2024: £9.0m), comprising:

o acquisition expenses of £0.8m (H1 2024: £1.7m, 2024: £3.4m), relating to deferred consideration accounted for as a post-acquisition expense under IFRS 2 and professional fees incurred in relation to the Group's mergers and acquisition activity in the period o  expense of £0.1m (H1 2024: £5.0m, 2024: £7.5m) in relation to the ongoing costs incurred for the defined benefit pension buy-in process which will eventually conclude with a buy-out of the scheme ·  costs relating to a restructuring within the Sensors & Information segment of £1.5m (H1 2024: £nil, 2024: £nil) ·   tax impact of adjustments of £0.5m charge (H1 2024: £1.3m credit, 2024: £1.7m credit) ·  discontinued operations in respect of the Explosive Hazard Detection ("EHD") business, net of tax, of £nil profit (H1 2024: £4.7m profit, 2024: £4.5m profit) an increase in disposal provision relating to a discontinued operation of £0.1m (H1 2024: £nil, 2024: £6.4m).

 

Further details are provided in note 3.

For further information:

Rupert Pittman	Group Director of Corporate Affairs, Chemring Group PLC	01794 463401
James McFarlane	MHP Group	07584 142665
Ollie Hoare		07817 458804

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 global business that specialises in the manufacture of high technology products and the provision of services to the defence, security and aerospace 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 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

 

Analyst meeting

An analyst meeting will take place at 09.00 (UK time) on Tuesday 3 June 2025 at the offices of Investec Bank plc, 30 Gresham St, London EC2V 7QP. To confirm attendance please contact MHP Group: chemringplc@mhpgroup.com.

Presentation

The presentation slides and a live audio webcast of the presentation to analysts will be available at the Chemring Group results centre www.chemring.com/investors/results-centre at 09.00 (UK time) on Tuesday 3 June 2025.

Photography

Original high resolution photography is available to the media by contacting MHP Group: chemringplc@mhpgroup.com .

 

 

INTERIM MANAGEMENT REPORT

Group overview

H1 2025 performance was in line with the Board's expectations. Revenue was up 5% to £234.3m (H1 2024: £223.4m, 2024: £510.4m), driven by strong performance in Countermeasures & Energetics, offset by a weaker period in Sensors & Information as the new UK Government administration finalises its spending plans, as previously guided.

 

Order intake for H1 2025 was strong, up 42% to £488m (H1 2024: £345m, 2024: £673m) and has contributed to a record order book at 30 April 2025 of £1,304m (H1 2024: £1,041m, 2024: £1,038m), the highest in Chemring's history.

 

Underlying operating profit was up 8% to £27.1m (H1 2024: £25.0m, 2024: £71.1m) resulting in an underlying operating margin of 11.6% (H1 2024: 11.2%, 2024: 13.9%). The slightly improved margin primarily reflects the operational efficiencies at Energetics offset by the weaker period at Roke.

 

Total finance expense was higher at £3.0m (H1 2024: £2.3m, 2024: £4.8m) reflecting the increase in net debt following continued investment in growth capex.

 

Underlying profit before tax was £24.1m (H1 2024: £22.7m, 2024: £66.3m). The effective tax rate on the underlying profit before tax increased to 21.6% (H1 2024: 18.9%, 2024: 18.6%), as we have guided, as it trends toward the UK corporation tax rate. The underlying diluted earnings per share was up 3% to 6.8p (H1 2024: 6.6p, 2024: 19.3p).

 

Net debt has increased since the year end to £93.3m (H1 2024: £75.3m, 2024: £52.8m) primarily due to the strategic decision to invest in capex to increase capacity in our specialist energetic materials businesses to meet growing market demand.

 

Underlying operating cash inflow of £32.0m (H1 2024: £29.4m, 2024: £96.0m) represented 80% (H1 2024: 83%, 2024: 102%) of underlying EBITDA. The operating cash performance reflects our continued focus on commercial contracting and working capital management. Our two-year rolling average cash conversion has been 99%, showing the ongoing focus on working capital improvements is delivering long-term, sustainable positive results.

 

Of the Group's £1,304m order book at 30 April 2025, approximately £221m is scheduled for delivery during the second half of 2025. This represents cover of approximately 85% (H1 2024: 96%) of  expected 2025 revenue, leaving £1,083m of order book to be delivered in 2026 and beyond. At this stage, in Countermeasures & Energetics this provides approximately 86% (H1 2024: 90%) cover of expected 2026 revenue and approximately 64% cover of expected 2027 revenue.

 

Statutory operating profit was £29.5m (H1 2024: £17.5m, 2024: £58.1m) and after statutory finance expenses of £3.0m (H1 2024: £2.3m, 2024: £4.8m), statutory profit before tax was £26.5m (H1 2024: £15.2m, 2024: £53.3m). The statutory profit after tax from continuing operations was £20.8m (H1 2024: £12.2m, 2024: £42.7m) giving a statutory basic earnings per share from continuing operations of 7.7p (H1 2024: 4.4p, 2024: 15.7p).

 

A reconciliation of underlying to statutory profit measures is provided in note 3. The non-underlying costs relate to the amortisation of acquired intangibles, the gain on the movement in the fair value of derivative financial instruments and exceptional items, plus the tax impact associated with these adjustments.

Markets

Global attention on defence spending remains high, fuelled by uncertainty around US support for NATO, the ongoing events in Ukraine and the Middle East, as well as enduring tensions in the Asia-Pacific region. These deep-rooted geopolitical dynamics will drive a positive outlook for defence and security spending for the foreseeable future. In response to this elevated threat environment, several countries continue to announce defence budget increases, with the urgent need to restock their national arsenals and upgrade their capabilities combining to present significant growth opportunities for the Group. 

 

With the Russia-Ukraine war now in its fourth year, defence spending is rising right across Europe, for both NATO and non-NATO member countries. Furthermore, as European nations respond to the challenge of security increasingly becoming their own responsibility, they also aim to significantly increase their reliance on the continent's own defence contractors.

 

The European Defence Industrial Strategy ("EDIS") sets out a clear long-term vision to achieve defence industrial readiness in the European Union ("EU"), with the Readiness 2030 initiative (was the ReArm Europe Plan) aiming to increase defence investment and defence capabilities quickly and significantly.  Readiness 2030 aims to mobilise up to €800 billion to enhance Europe's military infrastructure by i) unlocking the potential of public defence funding at the national level, ii) creating a new €150 billion loan instrument - Security Action For Europe ("SAFE") for joint procurement, iii) the potential redirection of cohesion funds, and iv) by expanding European Investment Bank support. The recent UK-EU Security and Defence Partnership potentially initiates a pathway for UK businesses to ultimately access SAFE re-armament funds, and we are currently working with our stakeholders to identify opportunities where Chemring can access product demand and funding opportunities.

 

UK Defence is undergoing significant reforms aimed at both enhancing national security and bolstering the country's global presence. The UK Strategic Defence Review ("SDR"), initiated in July 2024 and announced yesterday, sets the path for the next decade to transform defence and make the UK secure at home and strong overseas by ensuring the nation is equipped to address the emerging threats, global security challenges, and technological advancements of the twenty-first century. Importantly, the SDR has been conducted in the context of a clear cross-party governmental commitment to increase defence spending over time, presenting potential opportunities for growth and investment for Chemring.

 

Roke's specialist capabilities and advanced technologies make it well placed to support multiple priorities identified in the SDR including the development of the United Kingdom Ministry of Defence's ("MOD") new "digital targeting web" - a major initiative aimed at enhancing battlefield connectivity and decision-making, backed by an investment of over £1 billion. Additionally, the establishment of the new Cyber and Electromagnetic Activities ("CEMA") Command to oversee the UK's defensive and active cyber activities, alongside electronic warfare ("EW") efforts, will also create significant opportunities for Roke.

 

The SDR also commits to investing £1.5 billion in an "always on" pipeline for munitions and building at least six new factories in the UK to produce munitions and energetics, which are key components of weapons, including propellants, explosives, and pyrotechnics. It also commits to building up to 7,000 UK-built long-range weapons to strengthen Britain's Armed Forces. The Group is well placed to benefit from these opportunities.

 

The UK Government recently announced the largest sustained increase in defence spending since the Cold War, with budgets set to rise to 2.5% of GDP by 2027 and to 3% in the following Parliament. Delivering on NATO commitments and ensuring a resilient nuclear deterrent are among the core priorities for this spend. Industrially, this is expected to be accompanied by a significant amount of capability re-shoring, and stockpile production, to ensure national self-sufficiency. The ensuing resilient and scalable UK industrial base will provide growth, high quality jobs and innovation to the national economy.

 

The UK MOD has also outlined a broad set of capability priorities, emphasising the integration of emerging technologies such as artificial intelligence ("AI"), autonomous systems, cyber and space capabilities, advanced materials, quantum computing, and next-generation air systems.

 

The US remains the world's largest defence market, with the Trump administration focused on deterring adversaries by maintaining overwhelming military superiority. In its recent budget proposal, the White House is requesting a total of US$1.01trillion in national defence spending for FY26. The expected capability focus for this budget will be on countering the threats posed by China's large missile inventories, growing attack-submarine force and sophisticated cyberattack capabilities. As a key supplier into the space and missiles sector, this represents a growing opportunity for Chemring.

 

The Group's significant capabilities position it well to contribute to both current and emerging defence and security requirements across multiple markets.

 

Strategy

Chemring is a technology-driven mid-tier defence and security company operating in specialised, high-barrier to entry markets where our differentiated capabilities provide a clear competitive advantage. Our growth strategy is built around three core strategic pillars - Grow, Accelerate, and Protect - designed to drive long-term value creation, scale our presence in key markets, and strengthen our position as a trusted partner in defence and national security.

 

Since Russia's illegal invasion of Ukraine in February 2022 and the broader decline in geopolitical stability, demand for our specialised Energetics capabilities is exceptionally strong and enduring. Alongside our customers, we are investing in increased production capacity and the advancement of manufacturing technologies across the Group to meet this demand. In the Countermeasures domain, we anticipate steady demand for our air and naval products over the next decade - even without active force deployment. The introduction of new platforms such as the F-47 in the US and the Future Combat Air System and Global Combat Air Programmes in Europe and Japan, all of which will require expendable countermeasures, represent enduring long-term demand for our products. To meet this, we are continuing to drive modernisation and automation throughout our facilities. Wherever possible, we also encourage technology sharing and a commitment to manufacturing excellence across the Group.

 

The Sensors & Information sector represents a further strategic growth area for Chemring. Our advanced capabilities align closely with evolving customer priorities, addressing increasingly complex and diverse threats. We are expanding our offerings across data science, software engineering, sensors, secure communications, cyber, and AI - areas where our deep customer relationships, mission expertise, and integration capabilities create clear differentiation. This positions us well to deliver enhanced value to defence, national security, and other critical customers, supporting long-term, sustainable growth.

 

The Group remains committed to pursuing strategy-led, bolt-on acquisitions, guided by a disciplined capital allocation framework and clearly defined criteria approved by the Board. M&A represents an important lever for accelerating growth in high-priority defence and national security segments - including cyber, information advantage, and US space and missile sub-systems. For these market areas we have a live pipeline of technology and capability targets which we are actively evaluating against our robust acquisition criteria.

Segmental review - Countermeasures & Energetics

Performance

In Countermeasures & Energetics, order intake was £418m, up 68% (H1 2024: £249m, 2024: £523m) with multi-year orders received across the sector.

 

In the Energetics sector we continue to see increased 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. As a result, our specialist energetic materials businesses, which design and manufacture high precision engineered devices and specialist materials, have seen strong customer demand with order intake increasing by 154% to £394m against an elevated comparative number in the prior period (H1 2024: £155m, 2024: £348m).

 

At the start of the financial year our Norwegian subsidiary, Chemring Nobel, signed a twelve-year framework agreement with Diehl Defence GmbH & Co. KG ("Diehl Defence") for the supply of MCX energetic material. Under this framework agreement Chemring Nobel also signed an initial purchase order valued at €231m; deliveries under this contract will be over a five-year period commencing in late 2026. Chemring Nobel also signed a three-year supply agreement with SAAB Switzerland for the supply of HMX. This contract, valued at £36m, will see deliveries being made in 2028-2030.

In the UK, our Scotland based business received an order valued at £23m for the delivery of critical components used in the Next Generation Light Anti‐Tank Weapon system ("NLAW"). This award is a follow-on to the £43m contract received from SAAB in March 2023. The Group expects to see deliveries under this contract commencing in 2026 and continuing into 2027. The business continues to make excellent progress in the construction of its new propellants manufacturing facility which remains on schedule, with costs in line with the plan. Construction of the new buildings is now complete, equipment is being installed, and the commissioning and licencing process is underway. Once live production starts in early 2027 this new facility will provide increased capacity and throughput in a safe and modern manufacturing environment.

 

We have also seen growing demand for precision engineered devices for space and missile applications, with our Chicago business receiving a significant level of orders in the period. This included an order valued at $106m for the delivery of critical components for use in an undisclosed US missile programme. Deliveries under this contract will be over a five-year period commencing in 2026, with continuous flow manufacturing made possible by the additional 45,000 sq. ft. facility that commenced operations in April 2024.

 

Order intake for our Countermeasures business was £24m (H1 2024: £94m, 2024: £175m) as focus turned to execution of multi-year orders received in prior years. Our UK Countermeasures business ("CCM UK") continued to see strong order intake with notable awards including a £11m order from the UK MOD for the supply of various air countermeasures in support of current and future operations. All work under this contract will be performed at CCM UK's facility near Salisbury, with deliveries being made during FY27 and FY28. As at 30 April 2025, the Countermeasures order book was £314m (H1 2024: £380m, 2024: £354m), providing strong order coverage in the medium term

 

Revenue for Countermeasures & Energetics was up by 20% to £141.7m (H1 2024: £117.7m, 2024: £298.4m) driven by growth across the whole segment. Underlying operating profit increased to £20.4m (H1 2024: £11.8m, 2024: £46.5m) and the underlying operating margin increased to 14.4% (H1 2024: 10.0%, 2024: 15.6%). The improvement in profitability was primarily due to improved operational performance in the period.

 

Opportunities and outlook

The Countermeasures & Energetics segment focus remains on maintaining and growing the Group's market-leading positions, in particular in the growing markets for specialist energetic materials and precision engineered energetic devices, and in countermeasures where we see sustained demand for our air and naval decoy products, particularly within our UK countermeasures business. Our focus on seeking to achieve appropriate margins, mindful of financial constraints from our customers, will continue.

 

The improved market conditions for our Energetics businesses reflected in our order intake and order book has presented a strong organic growth opportunity to expand capacity at these sites and in 2023 we announced a £200m investment programme to capitalise on this long-term demand. In 2024 our Norwegian business was awarded grant funding of £90m in support of our expansion projects, meaning the net investment required by the Group is £110m in total. To date we have spent c£70m and received £24m of grant funding in support of these expansion projects. All projects are on track, and we expect to increase revenue by £100m per annum and operating profit by £30m per annum from 2028.

 

In October 2024, the Norwegian Government announced that, in partnership with Chemring Nobel, it had launched a feasibility study into the establishment of a new production facility to further increase the production of military explosives, as they view Chemring Nobel as the producer in Europe and North America that can establish increased production the fastest. This co-funded feasibility study investigated the geographic location, infrastructure requirements and environmental considerations of building a new production facility. The study also considered the role and the levels of any financial contribution made by the Norwegian Government. Phase I, which focused on technical feasibility, the energetics market, cost/benefits to the local community and the overall business case, concluded in January, and the Norwegian Government is currently evaluating whether to proceed to Phase II. This would expand further on the technical feasibility and commercial arrangements, possibly by Q1 2026. We will provide a further update as and when appropriate.

 

As part of the twelve-year framework agreement with Diehl Defence (referenced above) Chemring is exploring options to perform the blending stage of the manufacturing process in Germany. Similarly, the Group has completed a feasibility study with the UK Government into the development of further manufacturing capacity at our site in Scotland.

 

Alongside these investments in expanding our capacities we continue to invest in new product development to ensure that our product portfolio remains highly relevant to our customers and will continue the process of operational alignment to share technology and manufacturing excellence across the Group. 

The Countermeasures & Energetics order book at 30 April 2025 was £1,222m (H1 2024: £883m, 2024: £933m) of which approximately £181m is currently expected to be delivered in the second half of 2025, representing 96% (H1 2024: 99%) of expected 2025 revenue. Coverage for 2026 and 2027 respectively is approximately 86% and 64% of expected revenue.

 

Segmental review - Sensors & Information

Performance

Order intake in the period was down at £70m (H1 2024: £96m, 2024: £150m) and revenue decreased by 12% to £92.6m (H1 2024: £105.7m, 2024: £212.0m), as expected. There have been delays in the publication of the SDR in the UK and whilst we have seen no evidence of Roke programmes either being lost or cancelled, the rate of new order placement has slowed and there has been an increase in project extensions. During the period we took action to match Roke's cost base with current demand and integrated our Futures business unit within our Defence business unit, which resulted in c.50 redundancies and has been recorded as a non-underlying restructuring cost. Having taken this action, and with the SDR now announced, Roke is now well positioned to capitalise upon the expected upturn in demand in the second half of the year.

 

Roke has continued to make significant strategic progress in its Defence products business where it has a significant (>£300 million) five-year international sales pipeline.

 

In January 2025 Roke signed a multi-year strategic agreement with a major US Prime Contractor for the supply of its high-speed Miniature Radar Altimeter ("MRA"). With a value of at least £26m (US$32m) over four years with deliveries commencing in October 2025, this agreement demonstrated the critical role Chemring plays in multiple space and missiles programmes is not confined to our Energetics businesses. Roke's MRA is the smallest and lowest mass radar altimeter of its type currently available for use in missile systems and uncrewed air vehicles.

 

In April 2025 it was announced that Roke will lead a UK sovereign industry collaborative effort to provide security to the UK, and its allies. Known as Science & Technology Oriented Research & development in Missile defence ("STORM"), this framework contract encompasses a broad spectrum of missile defence activities and capabilities. Partnering with the United Kingdom Missile Defence Centre ("UK MDC") Roke will lead a UK sovereign industry collaborative effort to provide security to the UK, and its allies, by countering current and future threats, including ballistic and hypersonic missiles. Valued at £251m over six years, the STORM framework will see Roke enhance its role as a trusted partner to the UK MDC, informing critical UK defence decision making and enabling Roke to play a key role in developing next-generation missile defence capabilities. As the overall Prime Contractor Roke will self-deliver elements of the contract and will also manage industry partners as they deliver the significant majority of contract value.

 

Roke continues to win contracts as the prime contractor and therefore order intake and revenue contains an element of "pass-through". For H1 2025, "pass-through" order intake was £2m (H1 2024: £7m, 2024: £16m) and revenue was £13.5m (H1 2024: £17m, 2024: £28m). Excluding Roke "pass-through" revenue, the underlying operating margin for Sensors & Information would have been 20.4% (H1 2024: 24.4%, 2024: 22.5%).

 

In the US, the Enhanced Maritime Biological Detection System ("EMBD") Full Rate Production ("FRP") contract continued as planned with a further $15m order received in the period. On the Joint Biological Tactical Detection System ("JBTDS") programme, which last year benefitted from a Low Rate Initial Production contract that completed in 2024, we are now supporting the US Army in their field testing and acceptance trials ahead of the expected FRP contract award in FY26.

 

These sole source positions with the United States Department of Defence ("US DoD") provide an excellent opportunity to penetrate international markets with these products sold under Foreign Military Sales ("FMS") and direct commercial sales agreements to key strategic allies of the US Government.

 

Underlying operating profit in Sensors & Information decreased, as expected, by 26% to £16.1m (H1 2024: £21.6m, 2024: £41.4m) and the underlying operating margin decreased to 17.4% (H1 2024: 20.4%, 2024: 19.5%).

  

Opportunities and outlook

The focus for Sensors & Information continues to be on expanding the Group's product, service and capability offerings to government and commercial customers in the technology-driven areas of national security, AI and machine learning, tactical EW, information security and biological detection.

 

In the UK, the national security and defence markets are being increasingly shaped by a rapidly changing threat environment with AI, EW, and data proliferation of particular focus. This is driving increased investment as customers look to modernise their capabilities at pace.

 

Roke will continue to focus its efforts on growing across all its business areas, delivering research, design, engineering and advisory services using its high-quality people and capabilities. New product launches and strategic partnerships form an integral part of this work. In the period Roke launched EM-Vis Deceive, a new portable EW system that brings electromagnetic attack capabilities directly to troops on the ground. It also signed a strategic partnership with Kagai Corporation to deliver advanced technologies to the Japanese market.

 

With strong positions in markets with high barriers to entry and where customers have unique profiles, we remain on track to organically grow Roke's revenues to greater than £250m by 2028, while maintaining strong margin performance. We will also continue to explore further bolt-on, strategy-led, acquisitions that can accelerate our growth strategy for Roke. However, any acquisition must meet a strict set of criteria, enhance shareholder value and fit in with our wider growth plans.

 

The order book for Sensors & Information at 30 April 2025 was £82m (H1 2024: £158m, 2024: £105m) driven by delays in the publication of the SDR in the UK (as previously guided). Of this, £40m is expected to be delivered in the second half of 2025, providing 67% cover of expected 2025 revenue (H1 2024: 91%).

 

Retirement benefit obligations

On 28 November 2023 the trustees of the Group's legacy UK defined benefit pension scheme, the Chemring Group Staff Pension Scheme (the "Scheme"), entered into a buy-in contract with an insurer, Pension Insurance Corporation. In the period to 30 April 2025 we have paid £0.2m in funding and expect to provide further funding for the rectification of certain members' benefits and to meet the costs associated with the eventual buy-out of the Scheme over the next six to nine months.

On completion of the full buy-out of the Scheme, the defined benefit assets and matching defined benefit liabilities will be derecognised from the Group balance sheet.

 

Board of Directors

Andrew Davies, who had been a non-executive director of Chemring since May 2016 and the Senior Independent Director since May 2020, retired from the Board on 31 January 2025, having approached the end of his nine-year term. As previously indicated in the 2023 annual report, Fiona MacAulay, who has been a non-executive director since June 2020, succeeded Andrew as the Senior Independent Director.

In a separate announcement the Board has today confirmed the appointment of Pete Raby as an independent non-executive director. He will join the Board on 1 September 2025. Pete is currently CEO of Morgan Advanced Materials plc, the FTSE-250 listed global manufacturer of advanced carbon and ceramic materials. Pete has been in this role for ten years and is due to retire on 1 July 2025. Upon joining the Board, Pete Raby will become a member of the Audit, Nomination and Remuneration committees.

Dividends

At the Annual General Meeting on 26 February 2025 the shareholders approved a final dividend in respect of the year ended 31 October 2024 of 5.2p per ordinary share. This was paid on 11 April 2025 to shareholders on the register on 21 March 2025.

 

The Board continues to recognise that dividends are an important component of total shareholder returns. The Board's objective is for a growing and sustainable dividend and continues to target a dividend cover of c.2.5 times underlying EPS, subject inter alia to maintaining a strong financial position. Therefore, the Board has declared an interim dividend in respect of the 2025 financial year of 2.7p (H1 2024: 2.6p) per ordinary share which will be paid on 5 September 2025 to shareholders on the register on 15 August 2025.

 

Share buyback programme

On 26 February 2025 the Group announced that it had commenced a share buyback programme of up to a maximum consideration of £40m. The sole purpose of the buyback programme is to reduce the Company's share capital with the ordinary shares purchased under the programme being cancelled. The buyback programme will end no later than the 2027 AGM.

As at 30 April 2025 0.9m shares have been purchased under the buyback programme at a cost of £3.3m.

 

RCF refinancing

On 28th April, the Group refinanced its revolving credit facility. The Group now has available revolving credit facilities of £180m running until December 2028, of which three further one-year extensions are available at the banks' discretion. The Group also continues to have a $20m overdraft facility for use in the US and a UK Export Finance loan facility for up to £80m, meaning total facilities of £275m are currently available to the Group.

 

Outlook - full year and longer term

The Board's full year expectations are unchanged, supported by order coverage at 30 April 2025 of 85% of expected 2025 revenue, and with a similar H2 weighting of operating profit to last year as previously communicated in February 2025.

 

The Group has previously communicated certain medium term financial objectives and assumptions. The material elements of these are:

-    Group - targeting mid-single digit % growth in the near term, accelerating to low double digit % growth as new capacity comes online

-    S&I - targeting mid-single digit % growth, from double digit growth in Roke, and US Sensors expected to be flat with a subsequent step change in growth as the JBTDS Program of Record commences FRP

-    C&E - targeting low single digit % growth in Countermeasures, with a step change in growth in Energetics as additional capacity is commissioned

-    Group targeting mid-teen return on sales in the medium term, with some operational leverage expected longer term

 

The market backdrop for defence is increasingly robust. The Group's longer-term growth prospects are strong, underpinned by robust activity levels, our leading technological offerings, our people, our order book and pipeline of further opportunities, high barriers to entry, the investments we continue to make in our strong, high-quality business and the potential for further bolt-on opportunities over time.

 

The Group remains on track to achieve its ambition to increase the Group's annual revenue to c.£1bn by 2030. This makes certain assumptions regarding market sizes, inclusion of some bolt-on M&A and is at current FX rates. The Group will continue to focus on cash generation and maintaining a robust and deployable balance sheet to enable opportunities for further growth.

 

With market-leading innovative technologies and services that are critical to our customers the Board is confident that Chemring will continue to deliver both robust organic and inorganic growth, balancing near-term performance with longer-term growth and value creation.

 

STATEMENT OF DIRECTORS' RESPONSIBILITIES

 

The directors are responsible for the maintenance and integrity of the Company website.

 

Legislation in the United Kingdom governing the preparation and dissemination of financial information differs from legislation in other jurisdictions.

 

Responsibility statement

 

We confirm that to the best of our knowledge:

 

a)	the Condensed Set of Financial Statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted for use in the UK;
b)	the Interim Management Report includes a fair review of the information required by: -      DTR 4.2.7R of the Disclosure Guidance and Transparency Rules, being an indication of important events that have occurred during the first six months of the financial year and their impact on the condensed set of financial statements; and a description of the principal risks and uncertainties for the remaining six months of the year; and -      DTR 4.2.8R of the Disclosure Guidance and Transparency Rules, being related party transactions that have taken place in the first six months of the current financial year and that have materially affected the financial position or performance of the entity during that period; and any changes in the related party transactions described in the last annual report that could do so.

 

By order of the Board

  

 

Michael Ord	James Mortensen
Group Chief Executive	Chief Financial Officer
3 June 2025	3 June 2025

 

 

 

CONDENSED CONSOLIDATED INCOME STATEMENT

for the half year to 30 April 2025

	Note	Unaudited Half year to 30 April 2025	Unaudited Half year to 30 April 2024	Audited Year to 31 Oct 2024
		£m	£m	£m
Continuing operations
Revenue	2	234.3	223.4	510.4
Operating profit	2	29.5	17.5	58.1
Finance expense		(3.0)	(2.3)	(4.8)
Profit before tax		26.5	15.2	53.3
Tax charge on profit	5	(5.7)	(3.0)	(10.6)
Profit after tax for the period		20.8	12.2	42.7
Discontinued operations
(Loss)/profit after tax from discontinued operations	13	(0.4)	4.2	(3.2)
Profit after tax for the period		20.4	16.4	39.5
Earnings per ordinary share
Continuing operations
Basic	6	7.7p	4.4p	15.7p
Diluted	6	7.5p	4.3p	15.3p
Continuing operations and discontinued operations
Basic	6	7.5p	6.0p	14.5p
Diluted	6	7.4p	5.8p	14.2p

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the half year to 30 April 2025

 

	Unaudited Half year to 30 April 2025 £m	Unaudited Half year to 30 April 2024 £m	Audited Year to 31 Oct 2024 £m
Profit after tax attributable to equity holders of the parent	20.4	16.4	39.5
Items that will not be reclassified subsequently to profit or loss
Remeasurement of the defined benefit pension schemes	(0.2)	(2.1)	(1.3)
Movement on deferred tax relating to pension schemes	(0.1)	0.5	0.5
	(0.3)	(1.6)	(0.8)
Items that may be reclassified subsequently to profit or loss
Exchange differences on translation of foreign operations	(6.0)	(6.6)	(12.0)
Tax on exchange differences on translation of foreign operations	(0.7)	-	0.1
	(6.7)	(6.6)	(11.9)
Total comprehensive income attributable to equity holders of the parent	13.4	8.2	26.8

 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the half year to 30 April 2025

 

Unaudited half year to 30 April 2025

	Share capital £m	Share premium account £m	Special capital reserve £m	Translation reserve £m	Retained earnings £m	Total £m
At 1 November 2024	2.7	309.0	13.0	(20.7)	52.3	356.3
Profit after tax	-	-	-	-	20.4	20.4
Other comprehensive loss	-	-	-	(6.0)	(0.2)	(6.2)
Tax relating to components of other comprehensive loss	-	-	-	(0.7)	(0.1)	(0.8)
Total comprehensive (loss)/income	-	-	-	(6.7)	20.1	13.4
Ordinary shares issued	-	0.1	-	-	-	0.1
Share-based payments (net of settlement)	-	-	-	-	3.0	3.0
Dividends paid	-	-	-	-	(14.2)	(14.2)
Purchase of own shares	-	-	-	-	(6.1)	(6.1)
At 30 April 2025	2.7	309.1	13.0	(27.4)	55.1	352.5

 

 

 

Unaudited half year to 30 April 2024

 

	Share capital £m	Share premium account £m	Special capital reserve £m	Translation reserve £m	Retained earnings £m	Total £m
At 1 November 2023	2.8	308.7	12.9	(8.8)	62.9	378.5
Profit after tax	-	-	-	-	16.4	16.4
Other comprehensive loss	-	-	-	(6.6)	(2.1)	(8.7)
Tax relating to components of other comprehensive loss	-	-	-	-	0.5	0.5
Total comprehensive (loss)/income	-	-	-	(6.6)	14.8	8.2
Ordinary shares issued	-	0.3	-	-	-	0.3
Share-based payments (net of settlement)	-	-	-	-	2.9	2.9
Dividends paid	-	-	-	-	(12.5)	(12.5)
Purchase of own shares	(0.1)	-	0.1	-	(26.5)	(26.5)
At 30 April 2024	2.7	309.0	13.0	(15.4)	41.6	350.9

 

  

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the half year to 30 April 2025

 

Audited year to 31 October 2024

	Share capital £m	Share premium account £m	Special capital reserve £m	Translation reserve £m	Retained earnings £m	Total £m
At 1 November 2023	2.8	308.7	12.9	(8.8)	62.9	378.5
Profit after tax	-	-	-	-	39.5	39.5
Other comprehensive loss	-	-	-	(12.0)	(1.3)	(13.3)
Tax relating to components of other comprehensive loss	-	-	-	0.1	0.5	0.6
Total comprehensive (loss) / income	-	-	-	(11.9)	38.7	26.8
Ordinary shares issued	-	0.3	-	-	-	0.3
Purchase of own shares	(0.1)	-	0.1	-	(38.4)	(38.4)
Share-based payments (net of settlement)	-	-	-	-	8.7	8.7
Dividends paid	-	-	-	-	(19.6)	(19.6)
At 31 October 2024	2.7	309.0	13.0	(20.7)	52.3	356.3

 

  

 

 

CONDENSED CONSOLIDATED BALANCE SHEET as at 30 April 2025

	Note	Unaudited As at 30 April 2025	Unaudited As at 30 April 2024	Audited As at 31 Oct 2024
		£m	£m	£m
Non-current assets
Goodwill		97.3	99.4	98.5
Development costs		18.9	17.5	18.6
Other intangible assets		27.9	8.5	10.0
Property, plant and equipment		303.8	261.0	287.8
Retirement benefit surplus		-	0.8	0.1
Deferred tax		9.6	6.4	7.3
		457.5	393.6	422.3
Current assets
Inventories		150.5	124.2	127.1
Trade and other receivables		115.5	86.4	91.0
Cash and cash equivalents	11	22.6	4.6	45.0
Current tax		1.0	-	-
Derivative financial instruments	8	2.3	0.6	0.9
		291.9	215.8	264.0
Assets classified as held for sale	13	5.7	6.0	5.8
Total assets		755.1	615.4	692.1
Current liabilities
Borrowings	11	(3.4)	(14.3)	(43.0)
Lease liabilities	11	(2.8)	(1.0)	(2.1)
Trade and other payables		(207.0)	(147.1)	(163.3)
Provisions		(3.4)	(5.4)	(3.2)
Current tax		-	(5.3)	(8.8)
Derivative financial instruments	8	(0.7)	(1.1)	(1.5)
		(217.3)	(174.2)	(221.9)
Non-current liabilities
Borrowings	11	(98.0)	(59.1)	(43.7)
Lease liabilities	11	(11.6)	(5.4)	(8.9)
Government grants		(35.5)	-	(24.0)
Provisions		(16.3)	(11.3)	(16.7)
Deferred tax		(23.7)	(14.3)	(17.6)
Derivative financial instruments	8	(0.1)	(0.1)	(2.9)
Preference shares	11	(0.1)	(0.1)	(0.1)
		(185.3)	(90.3)	(113.9)
Total liabilities		(402.6)	(264.5)	(335.8)
Net assets		352.5	350.9	356.3
Equity
Share capital		2.7	2.7	2.7
Share premium account		309.1	309.0	309.0
Special capital reserve		13.0	13.0	13.0
Translation reserve		(27.4)	(15.4)	(20.7)
Retained earnings		55.1	41.6	52.3
Total equity		352.5	350.9	356.3

 

 

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

for the half year to 30 April 2025

	Note	Unaudited Half year to 30 April 2025 £m	Unaudited Half year to 30 April 2024 £m	Audited Year to 31 Oct 2024 £m
Cash flows from operating activities
Cash generated from underlying operations	10	32.0	29.4	96.0
Cash impact of non-underlying items		(1.5)	(1.1)	(2.5)
Cash (utilised in)/generated from discontinued underlying operations	10	(0.3)	(0.6)	(1.5)
Cash impact of discontinued non-underlying items	10	(0.3)	(1.4)	(1.5)
Cash flows from operating activities		29.9	26.3	90.5
Employer contributions to defined benefit pension scheme		(0.2)	(2.0)	(3.0)
Tax paid		(11.5)	(5.2)	(6.5)
Net cash inflow from operating activities		18.2	19.1	81.0
Cash flows from investing activities
Purchases of intangible assets		(5.5)	(0.9)	(4.8)
Purchases of property, plant and equipment		(40.6)	(34.2)	(64.8)
Grant funding		12.9	-	22.0
Net cash outflow from investing activities		(33.2)	(35.1)	(47.6)
Cash flows from financing activities
Dividends paid	7	(14.2)	(12.5)	(19.6)
Purchase of own shares		(6.4)	(29.7)	(41.0)
Proceeds for transactions in own shares		-	0.5	0.9
Paid accrued dividends on shares		(0.3)	(0.2)	(0.2)
Finance expense paid		(0.7)	(1.7)	(4.0)
Capitalised facility fees paid		-	(0.3)	(0.8)
Drawdown of borrowings		105.0	75.0	100.0
Repayments of borrowings		(50.0)	(30.1)	(70.1)
Payment of lease liabilities		(1.3)	(0.7)	(2.5)
Net cash inflow/(outflow) from financing activities		32.1	0.3	(37.3)
(Increase)/Decrease in cash and cash equivalents		17.1	(15.7)	(3.9)
Cash and cash equivalents at beginning of period/year		2.0	6.4	6.4
Effect of foreign exchange rate changes		0.1	(0.4)	(0.5)
Cash and cash equivalents at end of period/year*	11	19.2	(9.7)	2.0

 

* Cash and cash equivalents of £19.2m (31 October 2024: £2.0m) is net of current borrowings of £3.4m (31 October 2024: £43.0m).

 

NOTES TO THE CONDENSED SET OF FINANCIAL STATEMENTS

 

1. ACCOUNTING POLICIES

Basis of preparation

The condensed set of financial statements do not constitute statutory accounts as defined by section 434 of the Companies Act 2006 and were approved by the Board of Directors on 3 June 2025.

 

Full accounts for the year ended 31 October 2024, which include an unqualified audit report, did not include a reference to any matters to which the auditors drew attention by way of emphasis without qualifying the report and did not contain statements under section 498(2) or (3) of the Companies Act 2006, have been delivered to the Registrar of Companies. These were prepared in accordance with UK-adopted international accounting standards ("UK-adopted IFRS") in conformity with the requirements of the Companies Act 2006.

 

Whilst the financial information included in this announcement has been computed in accordance with International Financial Reporting Standards ("IFRSs"), this announcement does not itself contain sufficient information to comply with IFRSs. This condensed set of financial statements has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted for use in the UK.

 

As required by the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority, the condensed set of financial statements has been prepared applying the accounting policies and presentation that were applied in the preparation of the company's published consolidated financial statements for the year ended 31 October 2024 except for income tax and any new and amended standards as set out below.

 

The preparation of financial statements in conformity with generally accepted accounting principles requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Although these estimates are based on management's best knowledge of the amount, event or actions, actual results ultimately may differ from those estimates.

 

Going concern

The directors believe the Group is well placed to manage its business risks successfully. The Group's forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Group should be able to operate within the level of its current committed facilities.

 

As part of their regular assessment of the Group's working capital and financing position, the directors have prepared a detailed bottom-up two-year trading budget and cash flow forecast for the period through to October 2026, being at least twelve months after the date of approval of the interim financial statements. This is in addition to the Group's longer-term strategic planning process. In assessing the forecast, the directors have considered:

 

·   trading risks presented by the current economic conditions in the defence market, particularly in relation to government budgets and expenditure;

·   the impact of macroeconomic factors, particularly inflationary pressures, supply chain challenges, interest rates, tariffs and foreign exchange rates;

·   the status of the Group's financial arrangements and associated covenant requirements;

·   progress made in developing and implementing operational improvements;

·   the availability of mitigating actions available should business activities fall behind current expectations, including the deferral of discretionary overheads and restricting cash outflows; and

·   the long-term nature of the Group's business which, taken together with the Group's order book, provides a satisfactory level of confidence to the Board in respect of trading.

 

Additional detailed sensitivity analysis has been performed on the forecasts to consider the impact of severe, but plausible, reasonable worst case scenarios on the covenant requirements. These scenarios, which sensitised the forecasts for specific identified risks, modelled the reduction in anticipated levels of underlying EBITDA and the associated increase in net debt. These scenarios included significant delays to major contracts and considered the principal risks and uncertainties referred to in note 16. These sensitised scenarios show headroom on all covenant test dates for the foreseeable future.

 

After consideration of the above, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future. Thus, they continue to adopt the going concern basis in preparing the half-yearly condensed financial statements.

Alternative Performance Measures ("APMs")

In the analysis of the Group's financial performance and position, operating results and cash flows, APMs are presented to provide readers with additional information. The principal APMs presented are underlying measures of earnings including underlying operating profit, underlying profit before tax, underlying profit after tax, underlying EBITDA, underlying earnings per share, and underlying operating cash flow. In addition, EBITDA, net debt, and constant currency are presented which are also considered to be non-IFRS measures. These measures are consistent with information regularly reviewed by management to run the business, including planning, budgeting and reporting purposes and for its internal assessment of the operational performance of individual businesses.

 

The directors believe that the use of these APMs assist in providing additional information on the underlying trends, performance and position of the Group. APMs are used to improve the comparability of information between reporting periods by adjusting for items that are non-recurring or otherwise non-underlying. Management consider non-underlying items to be:

 

·   amortisation of acquired intangibles;

·   material exceptional items, for example relating to acquisitions and disposals, business restructuring costs, impairments and legal costs;

·   material exceptional items from changes in legislation;

·   gains or losses on the movement in the fair value of derivative financial instruments; and

·   the tax impact of all of the above.

 

Our use of APMs is consistent with the prior year and we provide comparatives alongside all current period figures.

Accounting policies

The accounting policies applied by the Group in this half-yearly financial report are the same as those applied by the Group in its consolidated financial statements for the year ended 31 October 2024 with the exception of income tax which is detailed below. In addition, there have been no significant changes in accounting judgements or key sources of estimation uncertainty as disclosed in the consolidated financial statements for the year ended 31 October 2024.

 

Income tax expense is recognised at an amount determined by multiplying the profit before tax for the interim reporting period by management's best estimate of the weighted-average annual income tax rate expected for the full financial year.

 

Recent accounting developments

The following International Financial Reporting Committee ("IFRIC") interpretations, amendments to existing standards and new standards were adopted in the period ending 30 April 2025 but have not materially impacted the reported results or the financial position:

·      Classification of liabilities as Current or Non-current (Amendments to IAS 1);

·      Non-current liabilities with covenants (Amendments to IAS 1);

·      Supplier finance (Amendments to IAS 7 and IFRS 7); and

·      Financial instrument disclosures (Amendments to IFRS 17).

 

 

2. SEGMENTAL ANALYSIS - CONTINUING OPERATIONS

Half year to 30 April 2025 (unaudited)
	Sensors & Information	Countermeasures & Energetics	Unallocated*	Group
	£m	£m	£m	£m
Revenue	92.6	141.7	-	234.3
Segment result before depreciation, amortisation and non-underlying items	19.5	29.7	(9.4)	39.8
Depreciation	(2.8)	(8.9)	-	(11.7)
Amortisation	(0.6)	(0.4)	-	(1.0)
Segmental underlying operating profit	16.1	20.4	(9.4)	27.1
Amortisation of acquired intangibles	(0.3)	(0.4)	-	(0.7)
Non-underlying items	(2.3)	-	5.4	3.1
Segmental operating profit	13.5	20.0	(4.0)	29.5

 

 

Half year to 30 April 2024 (unaudited)
	Sensors & Information	Countermeasures & Energetics	Unallocated*	Group
	£m	£m	£m	£m
Revenue	105.7	117.7	-	223.4
Segment result before depreciation, amortisation and non-underlying items	24.5	19.4	(8.4)	35.5
Depreciation	(2.2)	(7.6)	-	(9.8)
Amortisation	(0.7)	-	-	(0.7)
Segmental underlying operating profit	21.6	11.8	(8.4)	25.0
Amortisation of acquired intangibles	(0.4)	(0.6)	-	(1.0)
Non-underlying items	(1.7)	-	(4.8)	(6.5)
Segmental operating profit	19.5	11.2	(13.2)	17.5

 

 

Year ended 31 October 2024 (audited)
	Sensors & Information	Countermeasures & Energetics	Unallocated*	Group
	£m	£m	£m	£m
Revenue	212.0	298.4	-	510.4
Segment result before depreciation, amortisation and non-underlying items	47.3	63.2	(16.8)	93.7
Depreciation	(4.6)	(16.4)	-	(21.0)
Amortisation	(1.3)	(0.3)	-	(1.6)
Segmental underlying operating profit	41.4	46.5	(16.8)	71.1
Amortisation of acquired intangibles	(0.8)	(1.2)	-	(2.0)
Non-underlying items	(3.2)	2.8	(10.6)	(11.0)
Segmental operating profit	37.4	48.1	(27.4)	58.1

 

 

* Unallocated items are specific corporate level costs that cannot be allocated to a business segment.

3. ALTERNATIVE PERFORMANCE MEASURES

 

The principal Alternative Performance Measures ("APMs") presented are the underlying measures of earnings which exclude exceptional items, gain or loss on the movement on the fair value of derivative financial instruments, and the amortisation of acquired intangibles. The directors believe that these APMs improve the comparability of information between reporting periods. The term underlying is not defined under IFRS and may not be comparable with similarly titled measures used by other companies.

 

Reconciliation from underlying to statutory performance:

 

	Unaudited Half year to 30 April 2025			Unaudited Half year to 30 April 2024
	Underlying	Non-underlying	Statutory	Underlying	Non-underlying	Statutory
	performance	items	Total	performance	items	Total
	£m	£m	£m	£m	£m	£m
Continuing operations
Revenue	234.3	-	234.3	223.4	-	223.4
Operating profit	27.1	2.4	29.5	25.0	(7.5)	17.5
Finance expense	(3.0)	-	(3.0)	(2.3)	-	(2.3)
Profit/(loss) before tax	24.1	2.4	26.5	22.7	(7.5)	15.2
Taxation	(5.2)	(0.5)	(5.7)	(4.3)	1.3	(3.0)
Profit/(loss) after tax	18.9	1.9	20.8	18.4	(6.2)	12.2
Discontinued operations
(Loss)/profit after tax from discontinued operations	(0.3)	(0.1)	(0.4)	(0.5)	4.7	4.2
Profit after tax	18.6	1.8	20.4	17.9	(1.5)	16.4
Earnings per ordinary share
Continuing operations
Basic	7.0p		7.7p	6.7p		4.4p
Diluted	6.8p		7.5p	6.6p		4.3p
Continuing operations and discontinued operations
Basic	6.9p		7.5p	6.5p		6.0p
Diluted	6.7p		7.4p	6.4p		5.8p

 

 

 

	Audited Year to 31 October 2024
	Underlying	Non-underlying	Statutory
	performance	items	Total
	£m	£m	£m
Continuing operations
Revenue	510.4	-	510.4
Operating profit	71.1	(13.0)	58.1
Finance expense	(4.8)	-	(4.8)
Profit/(loss) before tax	66.3	(13.0)	53.3
Taxation	(12.3)	1.7	(10.6)
Profit/(loss) after tax	54.0	(11.3)	42.7
Discontinued operations
(Loss)/profit after tax from discontinued operations	(1.3)	(1.9)	(3.2)
Profit after tax	52.7	(13.2)	39.5
Earnings per ordinary share
Continuing operations
Basic	19.8p		15.7p
Diluted	19.3p		15.3p
Continuing operations and discontinued operations
Basic	19.3p		14.5p
Diluted	18.8p		14.2p

 

Breakdown of non-underlying items:

	Unaudited Half year to 30 April 2025	Unaudited Half year to 30 April 2024	Audited Year to 31 Oct 2024
	£m	£m	£m
Gain/(Loss) on the movement in the fair value of derivative financial instruments	5.5	1.1	(2.0)
Acquisition expenses	(0.8)	(1.7)	(3.4)
Defined benefit pension buy-in and buy-out transaction	(0.1)	(5.0)	(7.5)
Change in senior management positions	-	(0.9)	(1.2)
Business restructuring	(1.5)	-	-
Decrease in legal and disposal provisions	-	-	3.1
Impact of non-underlying items on EBITDA	3.1	(6.5)	(11.0)
Intangible amortisation arising from business combinations	(0.7)	(1.0)	(2.0)
Impact of non-underlying items on operating profit and profit before tax	2.4	(7.5)	(13.0)
Tax impact of non-underlying items	(0.5)	1.3	1.7
Impact of non-underlying items on continuing profit after tax	1.9	(6.2)	(11.3)
Non-underlying discontinued operations after tax	(0.1)	4.7	(1.9)
Impact of non-underlying items on profit after tax	1.8	(1.5)	(13.2)
Underlying profit after tax	18.6	17.9	52.7
Statutory profit after tax	20.4	16.4	39.5

 

Derivative financial instruments

Included in non-underlying items is a £5.5m gain (H1 2024: £1.1m gain, 2024: £2.0m loss) on the movement in fair value of derivative financial instruments. This is excluded from underlying earnings to ensure the recognition of the gain or loss on the derivative matches the timing of the underlying transaction.

 

Acquisition expenses

Included in non-underlying items is £0.8m (H1 2024: £1.7m, 2024: £3.4m) of acquisition expenses. This includes £0.7m (H1 2024: £1.6m, 2024: £3.2m) relating to deferred consideration contingent on continued employment of the former owners of Cubica and Geollect which has been accounted for as equity-settled share-based payments under IFRS 2 Share-based Payments. We have classified this cost as a non-underlying item as it relates to the cost of acquiring the respective businesses as opposed to representing a market rate cost for ongoing employment of the former owners. The remaining expense of £0.1m (H1 2024: £0.1m, 2024: £0.2m) primarily includes professional fees incurred in relation to the Group's mergers and acquisitions activity during the period. The acquisition expenses are not reflective of the underlying costs of the Group and therefore, in order to provide an explanation of results that is not distorted by the costs of acquiring a business rather than organically developed, these costs have been excluded from the underlying measures.

 

Defined benefit pension buy-in and buy-out transaction

Included in non-underlying items is an expense of £0.1m (H1 2024: £5.0m, 2024: £7.5m) in relation to the ongoing costs incurred for the defined benefit pension buy-in process which will eventually conclude with a buy-out of the scheme. The buy-in and buy-out transaction is considered a non-recurring event by nature and the expense relating to it is material in size, therefore these costs have been excluded from the underlying measures.

 

Change in senior management positions

Included in non-underlying items are costs of £nil (H1 2024: £0.9m, 2024: £1.2m) relating to the change of senior management positions within the Group, including the Group Chief Financial Officer and the President of the Group's US operations. The non-underlying costs include costs incurred during handover periods. Costs incurred of this nature are considered exceptional given their significance comparative to general recruitment and remuneration activities across the Group, therefore these costs have been excluded from the underlying measures.

 

Business restructuring

Included in non-underlying items are costs of £1.5m (H1 2024: £nil, 2024 £nil) relating to business restructuring. During the period the Group took mitigating action to match Roke's cost base with current demand, and we have integrated our Futures business unit within our Defence business unit. As such, these costs are not reflective of the underlying costs of the Group and have been excluded from the underlying measures.

 

Legal and disposal provisions

Included in non-underlying items is a £nil (H1 2024: £nil, 2024 £3.1m) release of legal provisions, relating to the 2018 incident at our UK countermeasures facility in Salisbury. The HSE prosecution was closed in 2024.

 

Amortisation of acquired intangibles

Included in non-underlying items is the amortisation charge arising from business combinations of £0.7m (H1 2024: £1.0m, 2024: £2.0m). Amortisation of acquired intangibles arising from business combinations is associated with acquisition costs under IFRS 3 Business Combinations. IFRS requires intangibles to be recognised on acquisition that would not have been capitalised had the business grown organically under Chemring's ownership. As such, these costs are not reflective of the underlying costs of the Group and therefore, in order to provide an explanation of results that is not distorted by the history of business units being acquired rather than organically developed, have been excluded from the underlying measures.

 

Tax

In the period to 30 April 2025, the tax impact of non-underlying items comprises a £0.5m tax charge (H1 2024: £1.3m credit, 2024: £1.7m credit) on the above non-underlying items.

 

Discontinued operations

Included in discontinued non-underlying items is a £nil profit (H1 2024: £4.7m profit, 2024: £1.9m loss) in respect of the Explosive Hazard Detection ("EHD") business, and a £0.1m loss relating to an increase in provision for a previously disposed European munitions business. See note 13 for further details.

 

4. SEASONALITY OF REVENUE

 

Revenue in the Countermeasures & Energetics segment is expected to be weighted towards the second half of the financial year. This second half weighting arises due to customer behaviours in the defence marketplace, the timing of expected contract activity, public holidays, planned facility maintenance work programmes, and the acceptance testing of products by customers.

 

Revenue in the Sensors & Information segment normally is more evenly weighted across the first and second half of the year, with revenue at Roke driven by the UK Government budget year.

 

5. TAX - CONTINUING OPERATIONS

 

	Unaudited Half year to 30 April 2025	Unaudited Half year to 30 April 2024	Audited Year to 31 October 2024
	£m	£m	£m
Underlying tax charge	5.2	4.3	12.3
Tax impact of non-underlying items	0.5	(1.3)	(1.7)
Total statutory tax charge	5.7	3.0	10.6

 

Income tax charge is recognised at an amount determined by multiplying the profit before tax for the interim reporting period by management's best estimate of the weighted-average annual income tax rate expected for the full financial year.

 

The effective tax rate on underlying profit before tax for the period is a charge of 21.6% (H1 2024: 18.9%, 2024: 18.6%). The effective tax rate is higher than the 2024 effective tax rate, in line with our expectation, as it trends toward the UK corporation tax rate .

 

6. EARNINGS PER SHARE

 

Earnings per share is based on the average number of shares in issue, excluding own shares held, of 270,743,454 (H1 2024: 273,990,325, 2024: 272,875,033). Diluted earnings per share has been calculated using a diluted average number of shares in issue, excluding own shares held, of 276,142,462 (H1 2024: 280,604,559, 2024: 279,133,292).

 

The earnings used in the calculations of the various measures of earnings per share are as follows:

 

 

	Unaudited Half year to 30 April 2025			Unaudited Half year to 30 April 2024
	£m	Basic EPS (pence)	Diluted EPS (pence)	£m	Basic EPS (pence)	Diluted EPS (pence)
Underlying profit after tax	18.9	7.0	6.8	18.4	6.7	6.6
Non-underlying items	1.9			(6.2)
Profit from continuing operations	20.8	7.7	7.5	12.2	4.4	4.3
Profit/(loss) from discontinued operations	(0.4)			4.2
Total profit after tax	20.4	7.5	7.4	16.4	6.0	5.8

 

 

	Audited Year to 31 October 2024
	£m	Basic EPS (pence)	Diluted EPS (pence)
Underlying profit after tax	54.0	19.8	19.3
Non-underlying items	(11.3)
Profit from continuing operations	42.7	15.7	15.3
Loss from discontinued operations	(3.2)	(1.2)	(1.1)
Total profit after tax	39.5	14.5	14.2

 

7. DIVIDENDS

 

At the Annual General Meeting on 26 February 2025 the shareholders approved a final dividend in respect of the year ended 31 October 2024 of 5.2p per ordinary share (2024: 4.6p). This was paid on 11 April 2025 to shareholders on the register on 21 March 2025 and totalled £14.2m (H1 2024: £12.5m).

 

The Board also declared an interim dividend in respect of 2025 of 2.7p per ordinary share (2024: 2.6p) which will be paid on 5 September 2025 to shareholders on the register on 15 August 2025. The estimated cash value of this dividend is £7.5m (2024: £7.3m).

8. FINANCIAL INSTRUMENTS

 

During the six months to 30 April 2025, movements on derivative financial instruments were primarily driven by FX rate fluctuations. At 30 April 2025 there are no significant differences between the book value and fair value (as determined by market value) of the Group's derivative financial instruments.

 

The fair value of derivative financial instruments is estimated by discounting the future contracted cash flow using readily available market data and represents a Level 2 measurement in the fair value hierarchy under IFRS 7 Financial Instruments: Disclosures. As at 30 April 2025, the total fair value of forward foreign exchange contracts recognised in the condensed consolidated balance sheet were an asset of £2.3m (H1 2024: £0.6m, 2024: £0.9m), a current liability of £0.7m (H1 2024: £1.1m, 2024: £1.5m) and a non-current liability of £0.1m (H1 2024: £0.1m, 2024: £2.9m).

 

9. RELATED PARTY TRANSACTIONS

 

Past transactions with related parties are shown on page 168 of the Group's 2024 Annual report and accounts. There were no significant related party transactions during the current period requiring disclosure.

10. CASH GENERATED FROM OPERATING ACTIVITIES

 

	Unaudited Half year to 30 April 2025 £m	Unaudited Half year to 30 April 2024 £m	Audited Year to 31 Oct 2024 £m
Operating profit from continuing operations	29.5	17.5	58.1
Amortisation of development costs	0.8	0.7	1.3
Amortisation of intangible assets arising from business combinations	0.7	1.0	2.0
Amortisation of patents and licences	0.2	-	0.3
Loss on disposal of non-current assets	-	-	1.7
Depreciation of property, plant and equipment	11.7	9.8	21.0
Defined benefit pension buy-in and buy-out transaction expenses	0.1	5.0	-
Other non-underlying items	(3.4)	1.5	11.0
Share-based payment expense	2.3	1.9	5.8
Operating cash flows before movements in working capital	41.9	37.4	101.2
Increase in inventories	(27.4)	(24.6)	(30.1)
Increase in trade and other receivables	(26.7)	(12.5)	(16.9)
Increase in trade and other payables	44.2	29.1	41.8
Operating cash flow from continuing underlying operations	32.0	29.4	96.0
Discontinued operations
Cash utilised in discontinued underlying operations	(0.3)	(0.6)	(1.5)
Cash impact of discontinued non-underlying items	(0.3)	(1.4)	(1.5)
Net cash outflow from discontinued operations	(0.6)	(2.0)	(3.0)

 

11. ANALYSIS OF NET DEBT

 

	As at 1 Nov 2024	Cash flows	Non-cash changes	Exchange rate effects	As at 30 April 2025
	£m	£m	£m	£m	£m
Cash and cash equivalents*	2.0	17.3	-	(0.1)	19.2
Debt due after one year	(43.7)	(55.0)	0.4	0.3	(98.0)
Lease liabilities	(11.0)	1.3	(4.7)	-	(14.4)
Preference shares	(0.1)	-	-	-	(0.1)
	(52.8)	(36.4)	(4.3)	0.2	(93.3)

 

* Cash and cash equivalents of £19.2m (31 October 2024: £2.0m) is net of current borrowings of £3.4m (31 October 2024: £43.0m).

 

The Group's principal debt facilities comprise a £180m revolving credit facility up to December 2028 as well as a US$20m overdraft. The revolving credit facility was refinanced in April 2025 with a syndicate of seven banks and there are three one-year extensions at the banks' discretion.

 

In October 2024, the Group entered into a UK Export Finance Export Development Guarantee Facility led by Barclays PLC for up to £80m. This is a four-year, arm's length facility with a one-year draw down period and a three-year amortising repayment schedule. None of the borrowings in the current or the prior year were secured.

 

The Group had £170.0m (H1 2024: £69.3m, 2024: £157.4m) of undrawn borrowing facilities at the half year.

 

The Group is subject to two key financial covenants, which are tested quarterly. These covenants relate to the leverage ratio between underlying EBITDA and net debt; and the interest cover ratio between underlying EBITDA and finance costs. The calculation of these ratios involves the translation of non-Sterling denominated debt using average, rather than closing, rates of exchange. The Group was in compliance with the covenants throughout the period. The half year leverage ratio was 0.97 times (covenant limit of 3 times) and the half year interest cover ratio was 13.94 times (covenant floor of 4 times).

12. EXCHANGE RATES

 

The following exchange rates applied during the period:

 

	Average rate H1 2025	Closing rate H1 2025	Average rate H1 2024	Closing rate H1 2024	Average rate 2024	Closing rate 2024
US dollar	1.28	1.34	1.26	1.25	1.27	1.29
AU dollar	2.01	2.09	1.92	1.93	1.95	1.96
NOR krone	14.01	13.85	13.59	13.87	13.69	14.18

 

The translation of foreign currency items in the financial statements are dependent on the prevailing foreign exchange rates. For the period ended 30 April 2025, a 10 percent increase in the US dollar exchange rate would have decreased reported underlying operating profit for the first half of 2025 by approximately £0.2m, and a 10 percent increase in the Norwegian Krone would have decreased reported underlying profit by £0.9m. No other reasonable FX rate fluctuations would materially impact the results.

13. DISCONTINUED OPERATIONS AND HELD FOR SALE

Total losses from discontinued operations for the period to 30 April 2025 were £0.4m (H1 2024: £4.2m profit, 2024: £3.2m profit). Included in this balance is the underlying loss from the EHD business of £0.3m (H1 2024: £0.5m loss, 2024: £1.3m loss) and an associated non-underlying credit of £nil (H1 2024: £4.7m profit, 2024: £4.5m profit).  Also included in discontinued operations is £0.1m loss (H1 2024: £nil loss, 2024: £6.4m loss) relating to an increase in provisions for a previously disposed European munitions business.

 

EHD Business

In 2023 the decision was taken that the Explosive Hazard Detection ("EHD") business would not continue to operate as a result of the US DoD's decision in 2022 to transition the HMDS Program of Record into sustainment earlier than previously indicated. After evaluating the potential sustainment program it was determined that in the short to medium term there was insufficient DoD funding to make it economically viable for Chemring to continue to operate the EHD business. Therefore the business was abandoned and treated as a discontinued operation.

 

During the year to 31 October 2024 and prior to the assets being physically disposed of, the Group received an offer to purchase the EHD business. An asset purchase agreement was signed for the purchase of the EHD business and a held for sale asset of £5.8m in relation to the EHD business was recognised as at 31 October 2024, representing the fair value of the assets less costs to sell. The business assets were preserved, and certain costs were incurred to safeguard these assets in order to ensure that they were in a condition ready to sell. There was also certain revenue related to the sale of spare parts for the service of active units in operation which have occurred while the process of selling the EHD business was ongoing, as disclosed in the table below.

 

Subsequent to the period ended 30 April 2025, the sale transaction has completed and the EHD business has been sold. See note 15 for further information.

 

	Unaudited Half year to 30 April 2025				Unaudited Half year to 30 April 2024
	Underlying £m	Non-underlying £m	Total £m		Underlying £m	Non-underlying £m	Total £m
EHD business
Revenue	0.8	-	0.8		1.0	-	1.0
Operating loss/(profit)	(0.3)	-	(0.3)		(0.6)	5.4	4.8
Tax	-	-	-		0.1	(0.7)	(0.6)
	(0.3)	-	(0.3)		(0.5)	4.7	4.2
Other discontinued operations
Increase in provisions	-	(0.1)	(0.1)		-	-	-
Total loss/(profit) from discontinued operations	(0.3)	(0.1)	(0.4)		(0.5)	4.7	4.2

 

				Audited Year to 31 Oct 2024
		Underlying £m	Non-underlying £m	Total £m
EHD business
Revenue		1.8	-	1.8
Operating loss		(1.5)	5.2	3.7
Tax		0.2	(0.7)	(0.5)
		(1.3)	4.5	3.2
Other discontinued operations
Increase in provisions		-	(6.4)	(6.4)
Total loss from discontinued operations		(1.3)	(1.9)	(3.2)

 

 

The cash flows from discontinued operations are presented in note 10.

 

14. CONTINGENT LIABILITIES

 

The Group is, from time to time, party to legal proceedings and claims, and is involved in correspondence relating to potential claims, which arise in the ordinary course of business. There are currently no material open matters.

 

 

15. EVENTS AFTER THE BALANCE SHEET DATE

 

SALE OF THE EHD BUSINESS

The Group completed the sale of the EHD business to Elta North America, Inc. on 22 May 2025. Under the terms of the agreement, the Group received consideration of $9m upon completion of the transaction.

 

16. PRINCIPAL RISKS AND UNCERTAINTIES

 

The principal risks and uncertainties which could have a material impact on the Group's performance and could cause actual results to differ materially from expected and historical results have not changed significantly from those set out in the Group's 2024 Annual report and accounts. A detailed description of the Group's principal risks and uncertainties and the ways they are mitigated can be found on pages 76 to 82 of the 2024 Annual report and accounts. These risks can be summarised as:

 

·   occupational and process safety risks;

·   environmental laws and regulations risks; ·   climate risks;

·   market-related risks;

·   political risks;

·   contract-related risks;

·   technology risks;

·   financial risks;

·   operational risks;

·   people risks;

·   compliance and corruption risks; and

·   cyber-related risks.

 

Management have detailed mitigation plans and assurance processes to manage and monitor these risks.

 

17. CORPORATE WEBSITE

 

Further information on the Group and its activities can be found on the corporate website at www.chemring.com.

INDEPENDENT REVIEW REPORT TO CHEMRING GROUP PLC

 

Conclusion

We have been engaged by Chemring Group PLC ("the Company") to review the condensed set of financial statements in the half-yearly financial report for the six months ended 30 April 2025 which comprises the Condensed Consolidated Income Statement, the Condensed Consolidated Statement of Comprehensive Income, the Condensed Consolidated Statement of Changes in Equity, the Condensed Consolidated Balance Sheet, the Condensed Consolidated Cash Flow Statement and the related explanatory notes.

 

Based on our review, nothing has come to our attention that causes us to believe that the condensed set of financial statements in the half-yearly financial report for the six months ended 30 April 2025 is not prepared, in all material respects, in accordance with IAS 34 Interim Financial Reporting as adopted for use in the UK and the Disclosure Guidance and Transparency Rules ("the DTR") of the UK's Financial Conduct Authority ("the UK FCA").

 

Basis for conclusion

We conducted our review in accordance with International Standard on Review Engagements (UK) 2410 Review of Interim Financial Information Performed by the Independent Auditor of the Entity ("ISRE (UK) 2410") issued for use in the UK. A review of interim financial information consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. We read the other information contained in the half-yearly financial report and consider whether it contains any apparent misstatements or material inconsistencies with the information in the condensed set of financial statements. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing (UK) and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

 

Conclusions relating to going concern

Based on our review procedures, which are less extensive than those performed in an audit as described in the Basis for conclusion section of this report, nothing has come to our attention that causes us to believe that the directors have inappropriately adopted the going concern basis of accounting, or that the directors have identified material uncertainties relating to going concern that have not been appropriately disclosed.

 

This conclusion is based on the review procedures performed in accordance with ISRE (UK) 2410. However, future events or conditions may cause the group to cease to continue as a going concern, and the above conclusions are not a guarantee that the group will continue in operation.

 

Directors' responsibilities

The half-yearly financial report is the responsibility of, and has been approved by, the directors. The directors are responsible for preparing the half-yearly financial report in accordance with the DTR of the UK FCA.

 

As disclosed in note 1, the annual financial statements of the group are prepared in accordance with UK-adopted international accounting standards.

 

The directors are responsible for preparing the condensed set of financial statements included in the half-yearly financial report in accordance with IAS 34 as adopted for use in the UK.

 

In preparing the condensed set of financial statements, the directors are responsible for assessing the group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or to cease operations, or have no realistic alternative but to do so.

 

Our responsibility

Our responsibility is to express to the company a conclusion on the condensed set of financial statements in the half-yearly financial report based on our review. Our conclusion, including our conclusions relating to going concern, are based on procedures that are less extensive than audit procedures, as described in the Basis for conclusion section of this report.

The purpose of our review work and to whom we owe our responsibilities

This report is made solely to the company in accordance with the terms of our engagement to assist the company in meeting the requirements of the DTR of the UK FCA. Our review has been undertaken so that we might state to the company those matters we are required to state to it in this report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company for our review work, for this report, or for the conclusions we have reached.

 

  

 

Kate Teal

for and on behalf of KPMG LLP

Chartered Accountants

 

66 Queen Square

Bristol

BS1 4BE

 

3 June 2025