Chemring closes plant after fatal blast

A FATAL explosion at one of Chemring’s factories has forced the weapons maker to shut down operations ahead of a crucial sales period, sending its shares down 12pc yesterday.

The blast at its countermeasures facility near Salisbury in Wiltshire on Friday afternoon killed one worker and left another badly injured in hospital.

Chemring, which also makes grenades, mine detectors and fighter jet ejector seats, said it was too early to say precisely how big the financial impact would be. But it warned annual underlying profits were likely to come in between £10m and £20m lower than previously expected, “with a corresponding impact on the group’s operating cash flow and net debt”.

Sanjay Jha, an analyst at Panmure Gordon, said the timing of the blast “could not be worse” as Chemring gears up for a key sales season. The warning sent Chemring’s shares down 29p to 207p yesterday.

The company, which generates the vast majority of its halfbillion pounds in annual revenues overseas, said the financial hit would depend on the value of insurance payouts and how quickly it could get the factory up and running again after it investigates the explosion’s cause.

The blast follows a similar incident at Chemring’s Kilgore facility in Texas four years ago.