Chemring Group PLC (LON:CHG) has cooled fears that the explosion at its Chemring Countermeasures (CCM) facility near Salisbury last month could hit profits by more than its initial ‘up to £20mln’ estimate.
The decoy flare maker said three weeks ago that the explosion, which left one worker dead and another badly injured, would dent full-year profit by between £10-20mln.
READ: Chemring expects Salisbury explosion to dent profits by up to £20mln
It has confirmed today that the impact will likely be around the “middle of [that] range”. Chemring added it is still assessing the impact on next year’s results.
The cause of the blast is still unknown but the £500mln company is working with regulatory bodies to get the site up-and-running again.
Despite the incident in Salisbury, demand for Chemring’s flares and sensors has been strong, particularly in the US, where it has more facilities.
“With the exception of the impact of the CCM incident, trading across the group remains in line with the board's expectations,” read this morning’s statement.
Shares are up 0.2% to 197.6p.