Cobham first-half profit grows amid turnaround
Aerospace and defence group Cobham said on Thursday that it swung to an operating profit in the first half as revenue grew.
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In the six months to the end of June, the company made a statutory operating profit of £34.7m versus a £12m loss the year before, as revenue rose to £1bn from £916.7m. Meanwhile, the underlying pre-tax profit came in at £69.5m, down from £75.8m. Revenue and profit were ahead of expectations for £925m and 362.3m, respectively.
Order intake fell to £915.8m from £1.2bn the year before.
Cobham said it has decided to begin a strategic review of its Wireless and AvComm business units, both part of the communications and connectivity sector, and making up around 10% of the group's revenue.
“These businesses have strong technology and/or market positions and we will investigate how to optimise shareholder value,” it said.
Chief executive officer David Lockwood said: "We have been working hard to build the foundations for our future success but we are in the early stages of implementing a challenging turnaround in the group's performance. Cobham has a number of high quality businesses with differentiated technologies and know-how and leading positions in a number of attractive markets - this gives us confidence in Cobham's future."