14th Apr 2020 10:50
(Alliance News) - Chemring Group PLC on Tuesday said despite near-term uncertainty its long-term prospects remain strong.
The Ramsey, England-headquartered aerospace company said it continues to focus on risk mitigation and business continuity, and is implementing the latest government & health authority recommendations in each of its markets.
In the US, the UK and Norway, Chemring's operations have been designated as critical to the defence & national security industrial base, and in Australia the risk of business interruption is considered to be low.
Thus, the company said all of its businesses remain open, with business continuity plans mobilised at every location.
Looking ahead, Chemring said it has a "strong" order book. The company also said its manufacturing businesses continue to work closely with customer representatives to deliver timely testing and acceptance of products.
In addition, Chemring said it has committed revolving credit facilities totaling GBP150 million. These facilities mature in October 2022, with a two-year extension option.
The company's current level of net debt is GBP84 million, comprising current cash balances of GBP33 million and drawings under the revolving credit facility of GBP108 million.
In total, Chemring therefore has available liquidity of GBP73 million.
The company said it has taken various actions to protect profitability and to conserve cash, including tight control of spending and reduction in operational expenditure.
Chemring said its dividend of 2.4p per share will be paid on April 24.
"Whilst we are clearly mindful of market uncertainty due to Covid-19, we continue to see positive momentum across the group and our improving order book, robust financial position and strategy ensure that our long-term prospects remain strong," Chief Executive Michael Ord.
Chemring shares were trading 2.6% higher in London on Tuesday at 208.28 pence each.
By Evelina Grecenko; [email protected]
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