Cobham was leading the
In its half-year results for the six months to
The aerospace and security technology company said order intake for the year also dropped, taking a 25% hit to
Despite the metric falls the company has boosted its interim dividend to
Cobham said strong organic revenue growth continued in its commercial markets during the period, though this was offset by a 10% decline in defence and security markets.
Looking ahead the company said its expectations for the year are unchanged and that it anticipates continued good commercial growth, increased shorter cycle revenue and achievement of significant aerial refuelling engineering milestones in its second-half. It expects to generate mid-single digit organic revenue growth from 2015.
Cobham also said it expects an improvement in its trading margin from a combination of higher volumes and improved mix in the second-half with continued focus on enhancing operational performance, it said, as well as cash conversion to normalise, with an unwind of working capital on achievement of engineering milestones, said the company.
"Overall, we continue to expect Group organic revenue to decline by low-to-mid single digits in 2014, and we will continue to take appropriate actions to substantially mitigate the impact of this reduction. The Board continues to anticipate that Cobham can deliver mid-single digit organic revenue growth from 2015. This is expected to be underpinned by continued strong growth in commercial markets, a moderating rate of decline in the US defence/security market and increasing revenue from non-US defence/security markets," said Chief Executive Officer
Cobham's strategy of bringing more balance to the group continues to make progress with the acquisition of
In April the aerospace and security technology company said trading in its first quarter had been in line with the board's expectations and that it continued to plan for organic revenue to decline by low-to-mid single digits during the course of the year. However, while trading had been in line, translation of the company's revenue and earnings during the quarter have been hit by foreign currency headwinds, as anticipated in its 2013 preliminary results, it said.
In its full-year results in March, Cobham saw its pretax profit tumble 38% to
Cobham operates in three end markets; US defence/security, non-US defence/security and commercial, which comprises specialist aerospace, marine and land markets. Commercially driven businesses are now the company's biggest contributors to revenue, accounting for approximately 40% of the group's total.
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