Cobham says its 'challenging' turnaround is going well

 
Caitlin Morrison
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Cobham makes control systems for military jets (Source: Cobham)

Manufacturer Cobham today updated the market on its restructuring programme and said expectations for the annual performance remain unchanged.

Shares in the aerospace and defence group jumped by more than three per cent in early trading after the firm said it "continued to build the foundations for its future success through the implementation of a challenging turnaround in its performance".

"This turnaround includes arresting and reversing the Group's negative performance trajectory and the resolution of onerous contracts, including the KC-46 tanker programme, and other legacy issues," the company added.

Cobham's struggles with problems such as charges on the KC-46 programme led it to issue five profit warnings in less than two years, and earlier this year it was forced to raise £500m in a discounted rights issue.

Today, Cobham said it continues to focus on its three operation priorities of customer focus, leadership and simplification and control and execution.

The firm also noted recent additions to its senior team, with the appointment of Gillian Duggan as executive vice president of human resources and communications, and Paul Kahn as president of the communications and connectivity sector.

In terms of outlook, Cobham said: "As previously stated there remains a range of potential outcomes for full year performance and, as in prior years, this includes a significant level of trading activity in the final two months of the year. Overall, the board's expectations for group performance in 2017 remain unchanged."

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