Board Changes and Reconfirmation of FY26 Outlook

Chesterfield Special Cylinders Holdings plc (AIM: CSC) announces Board changes and cost reduction measures in response to ongoing delays and uncertainty around the rollout of UK hydrogen projects.

Chris Walters, Chief Executive since September 2018, will step down from the Board by mutual agreement and leave the Company on 31 July 2026. Chris Webster, Chief Operating Officer since April 2022, will lead the business as Managing Director and joins the Board with immediate effect. Sally Millen, who joined the Company in June 2022 and was appointed as Director of Finance in November 2024, also joins the Board with immediate effect as Finance Director.

These executive management changes recognise the reduced scale and simplification of Company operations following the sale of the Precision Machined Components division in October 2024 and the slower-than-anticipated development of the hydrogen storage and transportation market.

Richard Staveley, Non-Executive Director since May 2023 and representative of Harwood Capital, a major shareholder of the Company, will also step down from the Board on 30 September 2026.

Overall, these changes will result in a reduction to annual central costs of £0.3 million. In addition, the Company is targeting further cost savings of at least the same amount to ensure efficiency and alignment with its focus on growth and development in UK and overseas defence markets, while retaining the ability to capitalise on hydrogen and other market opportunities on a flexible basis.

The Company reconfirms its previously announced expectations for a strong and profitable second-half performance in FY26, supporting full-year market forecasts at levels similar to the prior year (FY25: revenue £16.6 million, adjusted EBITDA £0.8 million). The Company expects modest revenue growth in FY27 from defence newbuild contracts and lifecycle services, while hydrogen newbuild revenues, prudently removed from its forecasts, represent a potential upside.

Nick Salmon, Chair of Chesterfield Special Cylinders Holdings plc, commented: "On behalf of the Board, I thank Chris for all he has achieved over the past eight years and, in particular, for developing the strong senior management team who will now take the business forward. I also thank Richard for his support, insight, and valuable contribution during his tenure on the Board."

Chris Walters, Chief Executive, commented: "It has been a privilege to lead Chesterfield Special Cylinders over the past eight years. Following our successful divestments and restructuring, the business is now simpler, more streamlined and sharply focused on its core strengths. I would like to thank the Board and our shareholders for their continued support during my tenure, and I wish the team and the company every success for the future."

Chris Webster, Managing Director, commented: "We remain well placed to grow our UK and overseas defence business, both in newbuild and lifecycle services, while retaining the appetite, flexibility and appropriate cost structure to capitalise on hydrogen storage opportunities as and when they arise. As we look forward, on behalf of the management team and wider workforce, I would like to thank Chris for his leadership, his energy, and all that we achieved together."

Additional information

The following information regarding the appointment of Christopher (Chris) James Webster (aged 53) and Sally Ann Millen (aged 48) is disclosed pursuant to Schedule Two paragraph (g) of the AIM Rules for Companies ("AIM Rules"):

Chris Webster

An engineer with a degree in Materials Science & Technology from the University of Birmingham and an MBA from the University of Warwick, Chris has over 30 years' experience in heavy engineering, including senior leadership roles with British Steel, Tata Steel and Wabtec Rail. He joined the Company as Chief Operating Officer in April 2022 and has played a key role in the implementation of significant operational improvements within the business.

As at the date of this announcement, Chris Webster holds 8,095 ordinary shares in the Company.

Sally Millen

A Chartered Accountant with a degree in Accounting & Financial Management from the University of Sheffield, Sally has over 17 years' experience in senior finance roles. Sally joined the Company as Group Financial Controller in June 2022, playing a key role in the implementation of significant improvements to the Group's financial management, controls and reporting. In November 2024, Sally was appointed Director of Finance, in a non-Board position.

As at the date of this announcement, Sally Millen holds no ordinary shares in the Company.

Except as stated above, there is no further information to be disclosed in respect of Sally Millen or Chris Webster under Schedule 2(g) of the AIM Rules for Companies.