Chemring Group PLC (CHG) said all its operations remain open and it will pay the 2.4p per share final dividend as planned.
The defence and security group’s factories have been designated as critical to national security in the UK, US and Norway and so exempt from the coronavirus lockdown, with Australia said to be at “low” risk of disruption.
In its first update since early March, Chemring said customers had continued to place orders, including a recent US$17mln deal to supply countermeasure flares for the F-35 Joint Strike Fighter programme.
Some coronavirus-related disruptions have been seen, for example where clients have not been able to complete product acceptance procedures on time, which in coming weeks “presents a risk of some short term revenue deferrals”.
With net debt currently of £84mln, Chemring said it has committed bank borrowing facilities of £150mln and cash balances of roughly £33mln, meaning it has available liquidity of circa £73mln.
The final dividend will amount to a payment of £6.7mln when it is paid on 24 April.
Shares in the FTSE 250 group were up 2% to 207p on Tuesday morning, still down 17% so far this year.