Defence firm Cobham warns on profits after 'challenging' third quarter
Struggling aerospace and defence firm Cobham has issued a profit warning after "challenging" trading in the third quarter.
It said full-year group trading profit, including currency impacts, will now come in between £255 million and £275 million after being dragged down by a lacklustre performance from its satcom and wireless business unit and its integrated electronic solutions arm.
But despite being "behind management's expectations" in the third quarter, the firm expects trading to pick up in the fourth quarter from " increased volumes in a number of areas".
"While good progress is being made in wireless by the new management team, this has been at a slower pace than expected, with some revenue deferral and additional costs incurred from increased resource requirements," the company said.
"In integrated electronic solutions there have also been some additional costs and deferred revenue relating to the previously reported technical issues on a small number of space-related development programmes. However, these have largely been resolved in the third quarter."
Cobham reported losses of £38 million in August, which was preceded by a profit warning and an emergency £506.7 million rights issue to reduce its debt pile.
The firm also parted company with chief executive Bob Murphy in the summer and replaced him with David Lockwood, currently boss of tech company Laird.
Mr Lockwood is set to join Cobham "no later" than January 1 next year.
Shares in Cobham were down more than 13% when the London market opened.