FOR IMMEDIATE RELEASE                                                                                                   2 NOVEMBER 2021

CHEMRING GROUP PLC ("Chemring", the "Group" or the "Company")

CONTRACT AWARDS AND FINANCIAL YEAR-END UPDATE

Contract awards

Chemring is pleased to announce that in the final month of its financial year, its US based subsidiary, Chemring Sensors & Electronic Systems ("CSES") has been awarded a Full Rate Production contract for the Enhanced Maritime Biological Detection ("EMBD") Program of Record. The EMBD system is an advanced sensor system to rapidly detect, collect and identify airborne biological warfare agents.

This sole source framework contract is valued at up to US$99m with an estimated completion date of December 2027. An initial delivery order of US$16m will see deliveries being made in the final quarter of FY22 and FY23. The customer is the US Department of Defense and all work under this contract will be performed at CSES's facility at Charlotte, North Carolina.

Chemring Australia has also received a contract modification valued at US$20m. This is in addition to the US$22m contract that was announced on 28 September 2021 and is for the supply of MJU-68/B infrared countermeasures in support of the F-35 programme. The customers are both the US Navy and Air Force, and the Governments of Norway, Japan, Italy and the Netherlands. Work under this contract will see deliveries being made in FY22. These countermeasures play a critical role in protecting service men and women from the threats posed by heat-seeking and radar-controlled missiles.

Financial year-end update

Trading in the period to 31 October 2021 has progressed as planned despite the challenging environment in which we continue to operate. As a result, the outturn for the year ending 31 October 2021 is expected to be in line with the Board's expectations, with adjusted operating profit expected to be in line with the consensus of current analyst expectations.*

The continued focus on the management of working capital, cash generation and the reduction of intra-period net debt volatility has again delivered positive results. Year-end net debt is now expected to be approximately £27m (2020: £48.2m), with strong operating cash conversion of 105% of EBITDA (2020: 110%), together with lower finance and tax payments driving the reduction.

The closing order book at 31 October 2021 was £502m (2020: £476m) which provides 83% (2020: 78%) cover of expected FY22 revenue, split 94% (2020: 92%) in Countermeasures & Energetics and 65% (2020: 53%) in Sensors & Information.

FY21 results

Chemring's FY21 results are scheduled to be announced on 14 December 2021.

-ENDS-

* The Group believes analyst forecasts for adjusted operating profit for the year ended 31 October 2021 are in the range of £56.0m to £59.6m, with a consensus of £57.5m.

For further information:

Rupert Pittman           Group Director of Corporate Affairs,                         01794 463401

                                       Chemring Group PLC             

Andrew Jaques            MHP Communications                                                0203 128 8170

James Bavister

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 FTSE250 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 2,300 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.co.uk