20 May 2026

Chesterfield Special Cylinders Holdings plc

("CSC " or the "Company")

2026 Interim Results

Chesterfield Special Cylinders Holdings plc (AIM: CSC) announces its unaudited interim results for the 26 weeks to 28 March 2026 ("the period").

Financial results

1 A restatement has been made to reflect a re-classification of labour costs from cost of sales to administration expenses. See Note 14

2 Adjusted EBITDA is earnings before interest, tax, depreciation, amortisation and other exceptional costs

3 Adjusted operating loss is operating loss before disposal of discontinued operation, amortisation and other exceptional costs

4 Net cash comprises cash and cash equivalents, borrowings, asset finance lease liabilities and right of use asset lease liabilities

5 Adjusted loss per share is loss per share before disposal of discontinued operations, exceptional costs and theoretical tax adjustments

Highlights

Outlook

Chris Walters, Chief Executive of Chesterfield Special Cylinders Holdings plc, commented:

"First-half trading was broadly in line with our expectations, and we still anticipate a strong and profitable second-half performance, supporting FY26 market forecasts with full-year revenue and adjusted EBITDA at levels similar to FY25.

Following a record full-year Integrity Management performance in FY25, some UK naval deployments originally expected in FY26 have been postponed into FY27 due to delayed docking schedules. However, we were pleased to secure our first ever Integrity Management contract for overseas naval submarines in the first half, with European deployments starting early in the second half.

The continued slippage of hydrogen projects under the UK government's HAR programme has been frustrating and disruptive. While uncertainty remains around projects included in our mid-term growth targets, HAR contract awards are still possible in FY26, and we remain actively engaged with hydrogen customers and operationally prepared to undertake large-scale storage projects.

Overall, our outlook and prospects are underpinned by a robust defence order book and strong pipeline of opportunities across UK and overseas naval newbuild programmes."

For further information, please contact:

COMPANY DESCRIPTION www.csc-holdings.com and www.chesterfieldcylinders.com

Chesterfield Special Cylinders is a world-leading designer and manufacturer of high-pressure gas storage and transportation systems, used principally in safety-critical defence and hydrogen energy applications, and provides inspection, testing and recertification services throughout the system lifecycle.

Business review

In the first half of FY26, trading for Chesterfield Special Cylinders ("CSC") was broadly in line with management's expectations, with revenue of £6.4 million (2025: £5.4 million) and an adjusted EBITDA loss of £0.6 million after central costs (2025: loss £1.3 million).

Defence

Defence revenue of £5.0 million (2025: £4.4 million) reflects the phasing of defence contracts, weighted heavily towards the second half of the year, and Integrity Management naval deployments.

Completion milestones for the UK Dreadnought submarine and Type 26 frigate newbuild programmes were delivered during the first half of the year. Technical preparation also commenced for the SSN-A (AUKUS) Astute replacement programme, to enable early contract milestone delivery in FY27.

Progress continued during the first half with the delivery of contract milestones for existing overseas submarine and surface ship projects for Australian, Canadian, Spanish and French naval customers.

Initial product trials were completed in the first half of the year for US Navy supplier qualification, with manufacturing stages on track to commence in the second half of the year towards first product delivery in 2027.

Good strategic progress is being made in defence, where the order book was strengthened by key overseas submarine newbuild contract awards in the first half and early in the second half, including the previously announced order from French prime contractor Naval Group for the Scorpène-class submarine programme.

Integrity Management services

Following record full-year performance in FY25, Integrity Management services revenue was £1.3 million (2025: £2.1 million) in the first half, with some UK naval deployments originally expected in FY26 postponed into FY27 due to delayed fleet docking schedules.

At the end of the first half, we were pleased to secure our first order for Integrity Management services on overseas naval submarines, with deployment early in the second half of FY26. Further overseas naval Integrity Management opportunities are in the pipeline for FY27.

Hydrogen

Hydrogen revenue of £0.9 million (2025: £0.7 million) reflects in-factory lifecycle support services for static storage and road trailers.

Continued delays to the rollout of projects under the UK government's Hydrogen Allocation Rounds (HAR) are frustrating and disruptive for CSC and the wider supply chain.

Although the UK government continues to affirm its commitment to domestic green hydrogen production over the longer term, the delays to HAR projects reflect policy and regulatory uncertainty, the inflationary pressure on project economics due to high energy prices and borrowing costs, grid connection constraints and the slower-than-anticipated progression of customer offtake agreements.

Hydrogen contract awards are still possible in the second half of the year, however they will be too late to benefit FY26 results.

Post period end property lease renewal

On 6 May 2026, the Company announced that it had successfully renewed the lease on three acres of land adjacent to its existing freehold site in Sheffield. The lease renewal provides long-term security for the Company's manufacturing operations and has resulted in a revised carrying value of land and building assets from £2.6 million to £4.9 million.

Outlook

The Company still anticipates a profitable second half, supporting full-year revenue and adjusted EBITDA performance at similar levels to the previous year (2025: revenue of £16.6 million, adjusted EBITDA of £0.8 million).

While uncertainty remains around the rollout of UK hydrogen projects included within our mid-term growth targets, we remain actively engaged with customers and operationally prepared to undertake large-scale hydrogen storage projects. Cautious cost management measures are in place to help mitigate the impact of these delays, and further cost management steps are available if the delays continue.

Overall, the outlook and prospects for the Company are underpinned by a robust defence order book and strong pipeline of opportunities across UK and overseas submarine and surface ship newbuild programmes. 

Chris Walters

Chief Executive

19 May 2026

Financial review

Revenue and profitability

Revenue of £6.4 million (2025: £5.4 million) in the first half of FY25 generated gross profit of £2.1 million at 33% margin (2025 restated: £1.4 million at 27% margin).

Overhead costs of £3.2 million in the period (2025 restated: £3.2 million) resulted in an adjusted operating loss of £1.0 million (2025: loss £1.7 million).

Allowing for depreciation charges of £0.4 million (2025: £0.4 million), the adjusted EBITDA loss was £0.6 million (2025: loss of £1.3 million). Exceptional costs of £44,000 were incurred in the period, being principally advisory fees relating to the renewal of the Sheffield property lease (2025: £0.7 million, reflecting cost related to disposal of the PMC division), see Note 5.

Operating cash flow and capital expenditure

Operating cash outflow in the period was £0.7 million (2025: outflow £0.5 million), arising primarily from an adjusted EBITDA loss of £0.6 million (2025: adjusted EBITDA loss of £1.3 million).

Capital expenditure in the period was £0.1 million (2025: £0.2 million), incurred principally for the replacement and maintenance of site facilities and equipment.

Cash balances, borrowings and liquidity

The cash balance at the end of the period was £1.1 million (2025: £1.9 million), reflecting the operating cash outflow and capital expenditure in the period. On 19 May 2026, the cash balance was £2.3 million.

The net cash position of £0.6 million (2025: £1.4 million) comprised the period-end cash balance less borrowings of £nil (2025: £nil) and lease liabilities totalling £0.5 million (2025: £0.4 million).

Impairment reviews

The Company tests periodically for impairment, in accordance with IAS 36, if there are indicators that tangible fixed assets might be impaired. An impairment review was undertaken for CSC as at 28 March 2026. The review concluded that no impairment was required in these Interim Results.

Events after the balance sheet date

On 6 May 2026, the Company announced that it had successfully renewed the lease on three acres of land adjacent to its existing freehold site in Sheffield, resulting in a material change to the value of property assets on the Company's balance sheet.

The previously remaining leasehold term at the end of September 2025 was less than twenty years and the total value of the Company's land and building assets at the end of September 2025 was £2.6 million.

The new 125-year lease provides long-term security for the Company's manufacturing operations and results in a revised carrying value of the combined property asset of £4.9 million, comprising the existing freehold of £2.6 million and a £2.3 million right-of-use asset for the new lease (see Note 15).  This carrying value is in line with a valuation of the Company's land and building assets of £4.9 million, as assessed by independent chartered surveyors, Knight Frank, in March 2026.

Chris Walters

Chief Executive

19 May 2026

Condensed Consolidated Statement of Comprehensive Income

For the 26 weeks ended 28 March 2026

*The condensed consolidated statement of comprehensive income for the prior 26-week period has been restated (see Note 14) to reflect a re-classification of labour costs from cost of sales to administration expenses. There is no impact on the overall result for the financial period. This re-classification was already applied in the audited statutory accounts for the 52 weeks ended 27 September 2025. In addition, the profit on disposal of the discontinued operation has been included within the profit for the period from discontinued operations in line with the treatment applied in the audited statutory accounts for the 52 weeks ended 27 September 2025 (see Note 14).

Condensed Consolidated Statement of Financial Position

As at 28 March 2026

*The condensed consolidated statement of financial position as at 29 March 2025 has been restated (see Note 14) to reflect a re-classification of contract balances and deferred income from current to non-current. The restatement has had nil impact on the result for the period and nil impact on net asset at the balance sheet date. This re-classification was already applied in the audited statutory accounts as at 27 September 2025.

Condensed Consolidated Statement of Changes in Equity

For the 26 weeks ended 28 March 2026

For the 26 weeks ended 29 March 2025

Condensed Consolidated Statement of Changes in Equity (continued)

For the 52 weeks ended 27 September 2025

Condensed Consolidated Cash Flow Statement

For the 26 weeks ended 28 March 2026

The cash movements of the discontinued operation (previously a disposal group held for sale) in the comparative periods are detailed in Note 10.

Notes to the Condensed Consolidated Interim Financial Statements

1.   General information

Chesterfield Special Cylinders Holdings plc is incorporated in England and Wales and is quoted on AIM, a market operated by the London Stock Exchange.

These unaudited interim condensed consolidated financial statements for the 26 weeks ended 28 March 2026 were approved by the Board of Directors on 19 May 2026.

These financial statements may contain certain statements about the outlook for Chesterfield Special Cylinders Holdings plc. Although the Directors believe their expectations are based on reasonable assumptions, any statements about the outlook may be influenced by factors that could cause actual outcomes and results to be materially different.

2.  Basis of preparation

The Company's unaudited interim results for the 26 weeks ended 28 March 2026 ("Interim Results") are prepared in accordance with the Company's accounting policies which are based on the recognition and measurement principles of the UK-adopted International Accounting Standards in conformity with the requirements of the Companies Act 2006. As permitted, the Interim Results have been prepared in accordance with the AIM rules and not in accordance with IAS 34 "Interim financial reporting" and therefore the interim information is not in full compliance with International Accounting Standards.

The interim condensed consolidated financial statements are prepared under the historical cost convention as modified to include the revaluation of certain financial instruments. The accounting policies adopted in the preparation of the interim condensed consolidated financial statements are consistent with those followed in the preparation of the Company's annual consolidated financial statements for the year ended 27 September 2025. The principal accounting policies of the Company have remained unchanged from those set out in the Company's 2025 annual report and financial statements.  The Principal Risks and Uncertainties of the Company are also set out in the Company's 2025 annual report and financial statements and are unchanged in the period.

The financial information for the 26 weeks ended 28 March 2026 and 29 March 2025 has not been audited and does not constitute full financial statements within the meaning of Section 434 of the Companies Act 2006.

The Company's 2025 financial statements for the 52 weeks ended 27 September 2025 were prepared under UK-adopted International Accounting Standards. The auditor's report on these financial statements was unqualified and did not contain statements under Sections 498(2) or (3) of the Companies Act 2006 and they have been filed with the Registrar of Companies.

3.  Going concern

The interim condensed financial statements have been prepared on a going concern basis. Projections for the period to the end of May 2027 demonstrate that the Company, including its subsidiaries, can continue to operate and meet its financial obligations as they fall due for at least twelve months from the date of approval of the accounts. The Directors have not identified any material uncertainties that may cast significant doubt on the ability of the Company to continue to operate as a going concern. Factors likely to affect the Company's future development, performance and position are set out in the Company's 2025 annual report and financial statements.

At the end of the reporting period, the Company had no bank loans, overdrafts or other related financial liabilities.

The Company's systems for financial planning, management and control include a comprehensive budgeting process, with annual budgets approved by the Directors. Monthly monitoring of actual results against budget by the Directors is a standard practice, as is the quarterly review of financial forecasts, which consider operational performance, trading conditions and market opportunities.

Financial projections recognise that the Company remains dependent on the trading profitability of CSC, which is itself dependent on revenues from major UK and overseas defence contracts, UK hydrogen orders and high-value Integrity Management services.

Due to the significance of revenues from UK hydrogen projects in the 3YP from FY27 onwards, noting the history of delays and the uncertain outlook in this market, the Directors have considered scenarios that account for the loss of all future hydrogen newbuild projects. The Directors have also considered further sensitised scenarios that account for reasonably plausible delays to the placement of UK and overseas defence contracts, in addition to the loss of future hydrogen newbuild projects.

The Directors believe that the loss of future hydrogen contracts and material delays to defence contracts would give the Company sufficient time to take mitigating actions and adjust operating costs and capital expenditure plans to maintain liquidity and sufficient cash headroom throughout the forecast period. These mitigations have been included in the sensitised scenarios considered by the Directors in their confirmation of the going concern basis of preparation.

Notes to the Condensed Consolidated Interim Financial Statements (continued)

4.  Segmental analysis of Revenue, adjusted EBITDA and Operating Loss

Revenue by sector

Revenue recognition

The Company's pattern of revenue recognition is as follows:

Notes to the Condensed Consolidated Interim Financial Statements (continued)

4.  Segmental analysis of Revenue, adjusted EBITDA and Operating Loss (continued)

For the 26-week period ended 28 March 2026 (unaudited)

1 CSC operations comprise the results of the Chesterfield Special Cylinders Limited trading subsidiary and its subsidiaries.

2 Central costs comprise costs related to the public listing of Chesterfield Special Cylinders Holdings plc.

3 Segmental net assets / (liabilities) comprise the net assets of each segment adjusted to reflect the elimination of the cost of investment in subsidiaries.

Notes to the Condensed Consolidated Interim Financial Statements (continued)

4.  Segmental analysis of Revenue, adjusted EBITDA and Operating Loss (continued)

For the 26-week period ended 29 March 2025 (unaudited) - continuing operations only, restated*

1 CSC operations comprise the results of the Chesterfield Special Cylinders Limited trading subsidiary and its subsidiaries.

2 Central costs comprise costs related to the public listing of Chesterfield Special Cylinders Holdings plc.

3 Segmental net assets comprise the net assets of each segment adjusted to reflect the elimination of the cost of investment in subsidiaries.

*The segmental analysis for the prior 26-week period has been restated (see Note 14) to reflect a re-classification of labour costs from cost of sales to administration expenses. There is no impact on the overall result for the financial period. This re-classification was already applied in the audited statutory accounts for the 52 weeks ended 27 September 2025. In addition, the profit on disposal of the discontinued operation has been included within the profit for the period from discontinued operations in line with the treatment applied in the audited statutory accounts for the 52 weeks ended 27 September 2025.

Notes to the Condensed Consolidated Interim Financial Statements (continued)

4.  Segmental analysis of Revenue, adjusted EBITDA and Operating Loss (continued)

For the 52-week period ended 27 September 2025 (audited) - continuing operations only

1 CSC operations comprise the results of the Chesterfield Special Cylinders Limited trading subsidiary and its subsidiaries.

2 Central costs comprise costs related to the public listing of Chesterfield Special Cylinders Holdings plc.

3 Segmental net assets comprise the net assets of each segment adjusted to reflect the elimination of the cost of investment in subsidiaries.

Notes to the Condensed Consolidated Interim Financial Statements (continued)

5.  Exceptional costs

Items that are incurred outside the normal course of business and/or that are non-recurring are considered as exceptional costs and are disclosed separately on the face of the Condensed Consolidated Statement of Comprehensive Income.

An analysis of the amounts presented as exceptional costs is as follows:

6.  Taxation

The taxation credit in the period relates to a slight decrease in the net deferred tax liability of the Company. This is driven by a decrease in deferred tax liabilities in relation to accelerated tax depreciation.

7. Loss per ordinary share

The calculation of basic loss per share is based on the loss attributable to ordinary shareholders divided by the weighted average number of shares in issue during the period.

The calculation of diluted loss per share is based on basic loss per share, adjusted to allow for the issue of shares on the assumed conversion of all dilutive share options.

Adjusted loss per share shows loss per share after adjusting for the impact of amortisation charges and exceptional items, and for the estimated tax impact, if any, of those costs. Adjusted loss per share is based on the loss as adjusted divided by the weighted average number of shares in issue.

Notes to the Condensed Consolidated Interim Financial Statements (continued)

7. Loss per ordinary share (continued)

The effect of anti-dilutive potential shares is not disclosed in accordance with IAS 33.

The Company adjusted loss per share is calculated as follows:

Notes to the Condensed Consolidated Interim Financial Statements (continued)

7. Loss per ordinary share (continued)

The effect of anti-dilutive potential shares is not disclosed in accordance with IAS 33.

The Company adjusted loss per share is calculated as follows:

Notes to the Condensed Consolidated Interim Financial Statements (continued)

7. Loss per ordinary share (continued)

Notes to the Condensed Consolidated Interim Financial Statements (continued)