Update on Countermeasure Deliveries

On 12 September 2023 the Group issued a trading update in which it noted that achieving current full year expectations was subject to US Department of Defense approval of certain countermeasure deliveries, representing c.£25m of revenue, that had already been manufactured and would be recognised once approval had been received.

The delay in approval concerned the quality of raw material provided by a third-party supplier that was outside of the control of the Group.

The Group is pleased to report that the majority of the necessary approvals have now been received and associated deliveries can now be made. Whilst the revenue and profit associated with these deliveries can subsequently be recognised, the delay in shipment may leave insufficient time for the cash to be received from the customer prior to 31 October 2023 and as such these cash receipts may fall into early FY24.

The outturn for the year ending 31 October 2023 remains in line with the Board's and current analyst expectations*.

*The Group believes the consensus of analyst forecasts for adjusted operating profit for the year ended 31 October 2023 is £66.2m.