The Chemring Board is recommending a final dividend in respect of the year ended 31 October 2020 of 2.6p (2019: 2.4p) per ordinary share. With the interim dividend of 1.3p per share (2019: 1.2p), this results in a total dividend of 3.9p (2019: 3.6p) per share.
If approved, the final dividend will be paid on 23 April 2021 to shareholders on the register on 6 April 2021. In accordance with accounting standards, this final dividend has not been recorded as a liability as at 31 October 2020.
Other financial highlights include:
· 2020 performance was ahead of the Board's expectations with strong performance in both segments
· All businesses remained open and operational despite the challenges caused by COVID-19
· Safety remains a core value. Investment in the Group's manufacturing infrastructure is driving improvements in safety, efficiency and enhancing operational resilience
· Strong growth in orders and revenue for Roke including strategically important first Electronic Warfare order for Resolve into the US DoD
· Good progress made on securing new business in the UK, the US and Australia for the supply of global countermeasures, including the receipt by Chemring Australia of a definitised contract of $107m in support of the F-35
· Continued progress on the US Programs of Record. Further orders received in the year for the next phase of HMDS delivery, with the IDIQ increased by $200m, and customer approval and contract awarded for Low Rate Initial Production for the EMBD programme
· Significant reduction in net debt from strong operational cash generation, partially offset by scheduled capital expenditure and the adoption of IFRS16
· Board's expectations for 2021 are unchanged. Approximately 78% of expected 2021 revenue is covered by the order book