Chemring shares jump on launch of £50m share buyback
Chemring today launched a £50m share buyback programme prompting shares in the British aerospace technology supplier to jump over 4 per cent.
The FTSE-250 firm said it would purchase up to 28.4 million ordinary shares, with its dividend policy “unaffected.”
Michael Ord, Chemring’s chief executive, said the programme would “provide us with additional flexibility to deliver value for our shareholders and to our commitment to balance near-term performance with longer-term growth and value creation.”
Chemring – which supplies explosives used in missiles as well as cyberdefence and biochemical weapon detection technologies – has benefitted from a surge in orders this year, after the war in Ukraine sparked a rise in defence spending around the world.
Ord said in June that the firm had seen a “fundamental change in the security landscape” in the last 18 months as the companies order book hit a record £750m.
The company is currently headquartered in Hampshire and employs 2,500 people across its global operations.
Today’s buyback scheme is expected to be completed by 31 July 2024.