Chemring drops proposal to change directors' remuneration

Chemring has withdrawn proposals to change the remuneration policy for directors and set up a new incentive plan which were due to be put to shareholders at the annual general meeting today.

The group said the new policy was developed in line with the Investment Association's executive remuneration working group alternative model proposals.

But it said that following consultations with shareholders, the company no longer intended to seek shareholders' approval for the new policy or the CIP at the AGM, and that the directors' remuneration policy and its associated metrics as approved by shareholders at the AGM held in 2016 would continue to apply.

Chairman Carl-Peter Forster said: "We have been actively engaging with shareholders regarding long-term incentives for some time and, while we received majority support for the proposed revised approach, the Board believes that the right course of action now is to withdraw the resolutions and consider these plans further.

"The goard continues to believe that revising the policy is necessary for retaining and attracting the right calibre of talent to ensure the continued sustainable growth of the business and we will re-engage with shareholders to reach a consensus on this important issue."

The group said it had started the year positively, continuing the momentum of the second half of last year.

Order intake in the first four months of the year was in line with the board's expectations at £127.4m (28 February 2016: £88.9m).

Revenue during the four month period to 26 February was £145.6m (28 February 2016: £106.5m), reflecting both the significant weakening of sterling and the fulfilment of contracts in the Energetics Systems division.

The order book at 26 February was £556.9m (28 February 2016: £596.3m, 31 October 2016: £592.9m), the reduction since 31 October 2016, half being attributable to the weaker dollar against sterling and half to stable operational performance resulting in some order backlog being cleared.