Chemring is conducting a criminal investigation at a British fraud bureau

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The Serious Fraudulent Office (SFO) introduced criminal investigations involving money laundering, bribery and corruption among grenade and ammunition manufacturers Chemring, its affiliates and one of the business-related individuals.

Chemring, headquartered in Romsey, Hampshire, designs and manufactures bait, torch, detonator and grenade products. It also develops systems to protect aircraft and ships from missile attacks, as well as sensor equipment to detect improvised explosive devices.
Chemring Technology Solutions (CTSL) investigates after submitting its own report to the Securities and Futures Ordinance.

The Securities and Futures Ordinance says the investigation will examine “the business practices of Chemring Group and CTSL, including … officials, employees, agents and individuals.” It declined to comment further in the field investigation.

The company said the voluntary report prepared by CTSL involved two historic contracts. The company’s annual results report released on Thursday added that it had been a middleman who had served as “CTSL” and its “predecessor company.”

The first contract was obtained before Chemring took over CTSL, while the second one was in 2011.

Chemring said neither of these incidents were considered “a major event in the context of the group.”

It added that it was too early to confirm the findings of the SFO investigation, but said that it fully cooperated with the authorities and would provide further updates as appropriate.

Chemring announced its full-year results. For the 12 months to October 31, revenue increased 15% to £ 547.5 million.

Operating profit rose 14% to 55.4 million pounds due to higher “corporate consistency” and higher manufacturing yield as the company is pushing forward with restructuring plans that include the closure and consolidation of some production facilities.

However, the statutory profit before tax decreased by 50% to 4 million pounds after accounting for exceptional items including acquisition and disposal costs, restructuring and impairment costs.

Fraud Office declined to comment. Chemring shares rose 1.5% on Thursday to 181 pence.

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