Chemring took a £13 million cost hit on Thursday from legal fees for an ongoing Serious Fraud Office probe.
The provision, made over two years until 2019, is linked to an investigation into concerns about possible bribery and corruption at UK-based subsidiary Chemring Technology Solutions, which the company reported to the SFO and revealed in January.
The legal charge forms part of a balance sheet shake-up under new chief executive Michael Ord.
The firm is also planning to exit some parts of its energetics business, which makes pyrotechnics for plane ejector seats, leading to a £68 million impairment charge, it said.
The business, based in Derby and Florida, will be shut and more attention will be focused on sites in the US and Norway, which make niche equipment. A separate £48 million cost was also recorded on a number of items, including the legal costs for the SFO investigation.
Ord said the overhaul would lead to “a stronger business for the future”.
Chemring has faced a number of challenges this year, including an explosion a factory in Salisbury, which led to a cut in profit forecasts.
It said it had decided not to reopen the damaged production line and will move production to another part of the site.
