A four-and-a-half-year investigation into alleged bribery, corruption and money laundering at Chemring Group (LSE:CHG) PLC and a subsidiary by the UK Serious Fraud Office has closed without prosecution.
The SFO probe was launched in January 2018 into the conduct of business by Chemring and its subsidiary, Chemring Technology Solutions Limited (CTSL), including any officers, employees, agents and persons associated with them, on the basis of information passed by CTSL.
An “extensive investigation and a comprehensive review of the available evidence” was made, the SFO said, but it has now concluded its investigation as the evidence in the case “did not meet the test for prosecution as defined in the Code for Crown Prosecutors”.
Chemring said in a separate statement that it co-operated fully with the SFO throughout its investigation and is pleased that the matter is now closed.
“Chemring remains committed to conducting its business in an ethical and responsible manner at all times, and in full compliance with all applicable laws and regulations,” it said.
Analysts at Berenberg recently voiced caution around the SFO case as one of several near-term operational risks for the company, particularly a phase restart of its UK Countermeasures site following an explosion in last August, a legal dispute between a subsidiary and the US Army and a potential liability relating to tax exemption from the UK’s Controlled Foreign Company regime, which it said could weigh on sentiment.