01 May 2018 (TECHNICAL BULLETIN)
Group Chief Executive Appointment
Chemring announces that Group Chief Executive Michael Flowers has informed the Board of his decision to retire. Michael will step down from the Board of Chemring on 30 June 2018, and will leave the Group on 31 October 2018.
Following a comprehensive search process, the Board is pleased to announce the proposed appointment of Michael Ord as Michael Flowers’ successor. He is expected to join Chemring on 1 June 2018, and to take over as Group Chief Executive on 1 July 2018.
Michael Ord joins Chemring from BAE Systems, where he has held a number of senior roles across air, land and sea platforms, including Managing Director of the BAE Systems Naval Ships business and Managing Director of the BAE Systems F-35 Joint Strike Fighter business. Prior to his move into industry in 1996, Michael had a successful career in the Royal Navy.
Carl-Peter Forster, Chairman of Chemring, said:
“Michael Flowers has led Chemring since June 2014 through a period of significant transformation. Under his leadership the Group has been significantly restructured and strengthened, with a particular focus on safety improvement and the development of a more robust and sustainable business model. He has championed a culture of operational excellence and the sharing of best practice, and he leaves the Group well placed for future growth. The Board joins me in congratulating Michael for all that he has achieved, and in thanking him for his energy and commitment to Chemring over the past twelve years. We wish him well in his retirement.
“I am delighted that Michael Ord will be joining Chemring as our new Group Chief Executive. Michael has a proven track record within the international defence industry, most notably at BAE Systems, and I am certain that he has all the necessary skills and experience to enable Chemring to deliver growth over the next stage of Chemring’s progression.
“We are now moving from a period of significant change and reorganisation to one of growth and opportunity. The Board looks forward to working closely with Michael over the coming years.”
Michael Flowers, Chief Executive of Chemring, added:
“It has been a privilege to have served with Chemring over the past 12 years and to have been Chief Executive for the past four. Our team has concluded a period of major change and the efforts of all during difficult times has resulted in an organisation that is financially strong, industrially both effective and efficient, and market focused. In concentrating on market segments where we have genuine differentiation, market advantage and world class capabilities, the Group is now well positioned to reap the benefits from a growing market.
“I have discussed my potential retirement with the Board for some time. I believe that now is the right time for me to retire, and return to Australia, and for someone new to lead the Group on the next stage. I wish Michael Ord and the broader Chemring team all the best for the future.”
Outlook for the current financial year
Operational and financial performance continues to progress in line with expectations and as such the Board’s outlook for FY18 remains unchanged.
Interim results for the six months ended 30 April 2018 will be announced on 21 June 2018.
– ENDS –
This announcement contains inside information that qualified, or may have qualified, as inside information for the purposes of Article 17 of the Market Abuse Regulation (EU) 596/2014 (MAR). For the purposes of MAR and Article 2 of commission implementing Regulation (EU) 2016/1055, this announcement is made by Sarah Ellard, Group Legal Director and Company Secretary.
For further information:
|Rupert Pittman||Group Director of Corporate Affairs, Chemring Group PLC||+44 (0)1794 833901|
|Andrew Jaques||MHP Communications||+44 (0)20 3128 8100|
- Michael Ord’s biography:
Michael Ord was educated in Northumberland and the Royal Naval Engineering College, Plymouth, graduating in Aeronautical Systems Engineering and is a Chartered Engineer with the UK Engineering Council. Michael completed post-graduate management studies at Manchester Business School, and in 2017 he completed Harvard Business School’s Advanced Management Programme. He is a trustee of The Education & Training Foundation, and a member of the Royal Aeronautical Society.Michael served as a Commissioned Officer in the Royal Navy for twelve years in a number of engineering management roles. On completion of his service career he joined Westland Helicopters spending two years managing military and civil helicopter programmes. In 1999 he joined the British Aerospace Military Aircraft business where he held a number of programme management, engineering and commercial leadership roles. In 2008 he was appointed Managing Director of the BAE Systems F-35 Joint Strike Fighter business, leading teams across the UK and the US. In 2011 he joined BAE Systems Maritime Sector being appointed Managing Director of the BAE Systems Naval Ships business. From 2016 to date he has been Director – Programme Management, Engineering and Operations for the BAE Systems International Operating Group.
- As CEO of Chemring, Michael Ord will receive an annual salary of £430,000 and a pension allowance of 10% of base salary. Michael will also be eligible to participate in the annual bonus plan up to a maximum of 125% of salary and the annual long-term incentive plan up to 150% of base salary, though he is expected to receive a one-off award of performance shares of 200% of base salary shortly after becoming CEO. All these remuneration arrangements are consistent with the terms of the Director’s Remuneration Policy approved by shareholders at the AGM in March 2016.
- In accordance with paragraph 9.6.13 (2) – (6) of the UK Listing Rules, Michael Ord has confirmed that he has no details to disclose.
This announcement contains unaudited information based on management accounts and forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements often use words such as anticipate, target, expect, estimate, intend, plan, goal, believe, will, may, should, would, could, is confident, or other words of similar meaning. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results, and Chemring’s plans and objectives, to differ materially from those expressed or implied in the forward-looking statements.
There are a number of factors which could cause actual results to differ materially from those expressed or implied in forward-looking statements. Among the factors that could cause actual results to differ materially from those described in the forward-looking statements are; increased competition, the loss of or damage to one or more key customer relationships, changes to customer ordering patterns, delays in obtaining customer approvals for engineering or price level changes, the failure of one or more key suppliers, the outcome of business or industry restructuring, the outcome of any litigation, changes in economic conditions, currency fluctuations, changes in interest and tax rates, changes in raw material or energy market prices, changes in laws, regulations or regulatory policies, developments in legal or public policy doctrines, technological developments, the failure to retain key management, or the key timing and success of future acquisition opportunities or major investment projects.
Chemring undertakes no obligation to revise or update any forward-looking statement contained within this announcement, regardless of whether those statements are affected as a result of new information, future events or otherwise, save as required by law and regulations.
Notes to editors
- Chemring is a global business that specialises in the manufacture of high technology products and the provision of services to the aerospace, defence and security markets
- Employing approximately 2,600 people worldwide, and with production facilities in four countries, Chemring meets the needs of customers in more than fifty countries
- Chemring is now organised under three strategic product segments: Countermeasures, Sensors, and Energetics
- Chemring has a diverse portfolio of products that deliver high reliability solutions to protect people, platforms, missions and information against constantly changing threats
- Operating in niche markets and with strong investment in research and development, Chemring has the agility to rapidly react to urgent customer needs
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