Cobham first quarter trading flies in line with expectation after turbulence from raft of profit warnings

 
Rebecca Smith
It's not quite flying but Cobham has started a turnaround plan
It's not quite flying but Cobham has started a turnaround plan

Cobham has said its first quarter trading has come in line with expectations, off the back of a slew of profit warnings.

The aerospace company has issued five profit warnings over the past 16 months, but the FTSE 250 firm said ahead of its annual general meeting later today that its first quarter performance was as had been anticipated.

Read more: Cobham reveals it will raise more than £500m in its rights issue

Cobham noted the first quarter has become a "relatively small proportion" of the overall results for the year, given the "historic trading bias" towards June and December.

The company is in the midst of a turnaround strategy, though in its early stages, and is focusing on "enhancing operational and financial discipline", as well as simplification.

The firm said it had commenced a review of "the breadth and shape of its portfolio" and expects to provide an update to the market in its interim results on 3 August.

In February, the firm was bruised after its shares took a tumble of 20 per cent on the news of another profit warning and the announcement it might struggle to live up to what was a disappointing performance for 2016.

And last month it announced a £500m rights issue, at the same time unveiling a 37 per cent fall in pre-tax profits.

Today, Cobham said: "The board's expectations for group performance this financial year remain unchanged and it affirms the previous guidance for 2017."

The company said it was progressing with its previously announced "two for five fully underwritten rights issue, which is expected to raise gross proceeds of approximately £512.4m" to bolster the balance sheet.

Cobham expects to announce the results of its right issue and the commencement of trading in the fully paid new ordinary shares on 5 May.

Read more: Former Cobham boss heads across Atlantic with £1m payoff

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