Chemring warns over profit following fatality near Salisbury
Chemring has confirmed that it could take a £20 million hit after one employee died and another was hurt in an accident at its site near Salisbury on Friday.
The defence firm said one worker was killed and another "badly" injured at its flare manufacturing building at its Chemring Countermeasures facility.
Full year underlying operating profit is likely to be around £10 million to £20 million lower than previously expected as a result of the accident, with a "corresponding impact on the group's operating cash flow and net debt".
1/3Chemring Group PLC confirms that at approximately 5pm on Friday 10th August, an incident occurred in a flare manufacturing building at the Chemring Countermeasures facility, near Salisbury.
-- Chemring Group (@Chemring_Group) August 10, 2018
2/3There has been one fatality and one employee is currently receiving treatment in hospital. The site was immediately evacuated, and the incident brought under control. The emergency services are in attendance.
-- Chemring Group (@Chemring_Group) August 10, 2018
3/3Chemring has launched a full and immediate investigation into the cause of the incident. A further announcement will be made as information becomes available. The thoughts and support of all Chemring Group are with the families at this time.
-- Chemring Group (@Chemring_Group) August 10, 2018
Deliveries from the factory to customers in the final quarter of the year were previously expected to be £25 million and generate £15 million.
The incident also damaged some equipment and production is now temporarily halted, the military equipment group added.
Chemring has started an investigation into the accident, as well as the potential financial ramifications.
The firm said: "A full and immediate investigation into the cause of the incident has been launched in co-operation with the local regulatory authorities.
"The impact on our 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."
The deceased was a 29-year-old man from Southampton, Wiltshire Police confirmed over the weekend.
Authorities said the victim's family have been informed.
The second man caught up in the explosion, a 26-year-old from Pewsey, was in a serious but stable condition in Salisbury District Hospital.
Wiltshire Police said it was investigating the explosion with health and safety officers, and reassured the public that they faced no further risk.