BRITISH aerospace and defence firm Cobham yesterday reported a 92 per cent reduction in pre-tax profit in the first half of the year, despite improved orders and revenue during the period.
Profit before tax fell to £4m from £54m in the first six months of 2014.
The group said the acquisition of US wireless communications firm Aeroflex in May last year had a “significant impact” on the results.
Meanwhile, underlying pre-tax profit grew by 15 per cent to £135m.
The Dorset-based company increased its order intake by 32 per cent in the six months to 30 June, up from £728m in 2014 to £960m, and revenue jumped 26 per cent to £1.05bn from £834m.
Cobham boss Bob Murphy said the firm expects demand conditions to improve in its shorter cycle, commercial land and marine markets, and said it continues to make good progress on its aerial refuelling programmes.
“As a result, trading for the full year remains in line with expectations and we continue to expect there will be a greater weighting of earnings to the second half, with full year organic revenue growth in line with previous guidance,” he added.
Cobham shares were the fastest climbing in the FTSE 350 index yesterday, jumping by over eight per cent at one stage.
The company’s stock closed up by 6.55 per cent at 279.70p.