Cobham plc (LON:COB) released a trading update covering the period 1 January 2019 to 31 March 2019. The statement is issued ahead of Cobham’s 2019 Annual General Meeting (AGM) to be held today.
Progress in Year to Date
Overall, the Group’s trading performance in the first quarter of the year has been in line with the Board’s expectations, with the Group continuing its focus on improving operational performance and simplifying the business.
The overhead cost reduction plan in the Advanced Electronic Solutions Sector has commenced with anticipated 2019 savings of US$20m, as announced at Cobham’s preliminary results on 7 March 2019.
In the Mission Systems Sector, qualification of Cobham’s Wing Aerial Refuelling Pod (WARP) for the KC-46 US tanker programme is progressing and completion of WARP qualification testing continues to be anticipated for around the middle of 2020. Consistent with the agreement with Boeing announced on 19 February 2019, Cobham has made the balancing settlement payment of approximately US$63m in March.
Today Cobham has separately announced the appointment of Jamie Pike as a Non-executive Director and Chairman elect from 1 May 2019. He will takeover as Chairman after a short handover period, and taking account of the proposed completion of the takeover of RPC Group plc, where he is currently Chairman. This appointment follows Mike Wareing’s stated intention to step down, having led the Board through a period of significant change over the last two years and having been a Director since December 2010.
The Board’s expectations for 2019 remain unchanged from those set out on 7 March. There are considerable opportunities to improve the performance of the Group over the medium term and the continuing focus on customers, culture, operational improvement, business simplification and cash will allow the Group to realise its potential.
Notice of Results
The Group’s interim results will be announced on 1 August 2019.
David Lockwood, Cobham Chief Executive Officer, said:
“We continue to focus on improving operational performance and simplifying the business. The overhead cost reduction plan at Advanced Electronic Solutions is now underway.
“Over the past two years, we have returned Cobham to financial strength, announced our new capital allocation and dividend policy and, slowly but surely, we are resolving the contract, legal and regulatory issues that the business has faced.
“Overall, I am encouraged by the progress we are making in improving Cobham’s performance.”