TIDMCHG
RNS Number : 8078H
Chemring Group PLC
01 August 2023
FOR IMMEDIATE RELEASE 1 AUGUST 2023
CHEMRING GROUP PLC ("Chemring" or "the Group")
COMMENCEMENT OF GBP50 MILLION SHARE BUYBACK PROGRAMME
Chemring is pleased to announce the commencement of a Share
Buyback Programme (the "Buyback Programme") with effect from 1
August 2023 to purchase ordinary shares of 1 pence each ("Ordinary
Shares") in the capital of the Company up to a maximum aggregate
consideration payable by the Company of GBP50 million.
The Group's disciplined approach to capital allocation, which is
reviewed by the Board on a regular basis, prioritises both organic
and inorganic investment, a growing and sustainable dividend, and a
prudent approach to leverage.
The Company has a strong balance sheet, with leverage of 0.3x
net debt to EBITDA at 30 April 2023, and a robust pipeline of
organic and inorganic investment opportunities. The Board believes
that the Buyback Programme, by reducing the Company's share
capital, will facilitate an improved capital structure and deliver
value for shareholders, whilst still maintaining a strong balance
sheet.
The Buyback Programme is consistent with the Group's approach to
capital allocation and reflects the Board's continued confidence in
the future prospects of the Group. The Group intends to continue
assessing other organic and inorganic investment opportunities for
the duration of the buyback, in line with the Group's wider growth
strategy.
The sole purpose of the Buyback Programme is to reduce the
Company's share capital and it is intended that Ordinary Shares
purchased shall be cancelled. The Buyback Programme will end on 31
July 2024.
The Group will seek to make market purchases of Ordinary Shares
at a price or prices that the Group deems to be good value for
shareholders. In accordance with the Company's general authority to
repurchase Ordinary Shares granted by its shareholders at the
Annual General Meeting held on 15 March 2023 (the "General
Authority"), the Buyback Programme will purchase no more than
28,358,308 Ordinary Shares.
Any purchases of Ordinary Shares by Chemring in relation to the
Buyback Programme will be conducted in accordance with: the General
Authority; any further approvals to purchase shares as may be
granted by its shareholders from time to time; the Market Abuse
Regulation 596/2014 as it forms part of domestic law by virtue of
section 3 of the European Union (Withdrawal) Act 2018 (as amended);
and Chapter 12 of the Listing Rules.
The Company has entered into an irrevocable, non-discretionary
instruction with Investec Bank plc ("Investec") to conduct the
Buyback Programme on its behalf and to make trading decisions under
the Buyback Programme independently of the Company. The Company has
a right to terminate this instruction subject to being in
compliance with certain regulatory conditions.
The Company will make further announcements in due course
following the completion of any repurchases. There is no guarantee
that the Buyback Programme will be implemented in full or that any
Ordinary Shares will be repurchased by the Company. The Buyback
Programme will not impact the Company's existing Ordinary Share
dividend policy, which will continue unaffected through the regular
awards of interim and final dividends.
At the time of this announcement, the Company's share capital
comprises 283,609,773 Ordinary Shares with voting rights and 62,500
cumulative preference shares with no voting rights, save in
specified limited circumstances. The total number of voting rights
in the Company is therefore 283,609,773.
Michael Ord, Group Chief Executive of Chemring, commented:
"In recent years Chemring has been focused on building a
stronger, higher quality and more resilient business, in doing so
it has built a strong and deployable balance sheet which has
provided the Group with increased optionality. The share buyback
programme of up to GBP50m that we have announced today provides us
with additional flexibility to deliver value for our shareholders
and to our commitment to balance near-term performance with
longer-term growth and value creation."
-ENDS-
For further information:
Rupert Pittman Group Director of Corporate Affairs, 01794 463401
Chemring Group PLC
James McFarlane MHP Communications 020 3128 8100
Ollie Hoare
Notes to editors
-- Chemring is a FTSE-250 global business that specialises in
the manufacture of high technology products and the provision of
services to the aerospace, defence and security markets
-- Employing approximately 2,600 people worldwide, and with
production facilities in four countries, Chemring meets the needs
of customers in more than fifty countries
-- Chemring is organised under two strategic product segments:
Sensors & Information and Countermeasures & Energetics
-- Chemring has a diverse portfolio of products that deliver
high reliability solutions to protect people, platforms, missions
and information against constantly changing threats
-- Operating in niche markets and with strong investment in
research and development ("R&D"), Chemring has the agility to
rapidly react to urgent customer needs
www.chemring.com
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