- Defence contractor Chemring Group said Tuesday that it expects underlying profit at the middle of the range provided in August after production was halted at its UK Chemring countermeasures site following an incident.

'The impact on the group's underlying operating profit in the current financial year is likely to be around the middle of the range of £10m to £20m,' the company said.

This comes on the back of a profit warning issued in August after an employee was fatally injured and another employee was badly injured on Aug. 10 in an incident at a flare manufacturing building at the Chemring countermeasures facility.

With the exception of the impact of the Chemring countermeasures (CCM) incident, trading across the Group remained in line with the board's expectations for the four month period from 1 May to 31 August 2018, Chemring said.

The company also confirmed that it was working with regulatory bodies on the UK Chemring countermeasures site restart plan, which would involve completing the shipment of finished goods inventory and initiating a phased restart of non-MTV product lines.

The impact on the 2019 financial year would depend on the site restart plan, as agreed with the regulatory bodies, and expected production rates, the company added.

The company said it was engaging with insurance, but it was 'too early' to assess the amount of any claim or the likely timing of any payments.

At 8:42am: [LON:CHG] Chemring Group PLC share price was +2.5p at 199.7p

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