Chemring Group announced on Tuesday that it is initiating a share buyback program worth up to £50 million ($64.2 million). This move is aimed at improving the company's capital structure and providing value for its shareholders while maintaining a robust balance sheet.
Under this program, Chemring Group plans to repurchase a maximum of 28.4 million ordinary shares. It is important to note that this initiative will not impact the company's current ordinary share dividend policy, which will remain unaffected as regular awards of interim and final dividends are expected to continue.
The share buyback program is set to conclude on July 31, 2024. Throughout this period, Chemring Group will also explore other organic and inorganic investment opportunities as part of its broader growth strategy.
Chief Executive Michael Ord emphasized that the share buyback program offers flexibility in delivering value to shareholders while remaining committed to balancing short-term performance with long-term growth and value creation.
As a result of this announcement, shares in Chemring Group rose by 9 pence (3.2%) to reach 292.50 pence at 0758 GMT.
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