Chemring facing SFO criminal investigation

The Serious Fraud Office (SFO) has launched a criminal investigation into alleged money laundering, bribery and corruption linked to business conducted by Chemring and one of its subsidiaries.

It comes after one of Chemring's subsidiaries voluntarily reported two "specific historic contracts", according to a note in the company's full-year results released on Thursday, adding that the concerns involved intermediaries "who previously represented" CTSL and its "predecessor companies".

The first contract was awarded prior to the group's ownership of the business now known as Chemring Technology Solutions Limited (CTSL), while the second took place in 2011.

However, Chemring said that neither of the two incidents "are considered to be material in the context of the group".

In its own release, the SFO said: "The SFO has opened a criminal investigation into bribery, corruption and money laundering arising from the conduct of business by Chemring Group plc and its subsidiary, CTSL, including any officers, employees, agents and persons associated with them.

"We can make no further comment as the investigation is live."

Chemring said it is "too early" to determine the outcome of the SFO's investigation but said it is fully co-operating with authorities and would provide further updates "when appropriate".