Chemring warns on profits after worker killed by blast
A full investigation has been launched in co-operation with the local regulatory authorities after the explosion late on Friday afternoon at a Chemring Countermeasures facility, near Salisbury, causing damage to parts of manufacturing operations.
Local police confirmed the man killed was a 29-year-old from Southampton. The second man caught up in the explosion was a 26-year-old from Pewsey.
As a result of the incident, Chemring said full year underlying operating profit from the countermeasures arm is now likely to be £10-20m lower than the £15m previously expected for the the final quarter of the financial year to 31 October 2018.
There is likely to be a corresponding impact on the group's operating cash flow and net debt.
Management said a detailed analysis of the possible impact of the incident on the group's financial prospects has begun but the precise impact on 2018 and 2019 financial years "cannot be accurately quantified at this stage as it will be dependent on insurance recoveries, the timeline for the investigation to be completed and the site to re-open, remediation work to be completed and at what rate production resumes". ■