25 April 2019
Legal Entity Identifier: 213800A41R9NL49E5632
AGM Statement and Trading Update
Cobham plc ('Cobham' or 'the Group') is releasing 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 tofocus 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.'
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Julian Wais, Director of Investor Relations
Reg Hoare/Tim Rowntree/Nessyah Hart
+44 (0)1202 857998
+44 (0)20 3128 8100
1. This document contains 'forward-looking statements' with respect to the financial condition, results of operations and business of Cobham and to certain of Cobham's plans and objectives with respect to these items.
Forward-looking statements are sometimes but not always identified by their use of a date in the future or such words as 'anticipates', 'aims', 'due', 'could', 'may', 'should', 'expects', 'believes', 'intends', 'plans', 'targets', 'goal', or 'estimates'. By their very nature forward-looking statements are inherently unpredictable, speculative and involve risk and uncertainty because they relate to events and depend on circumstances that may or will occur in the future.
There are various factors that could cause actual results and developments to differ materially from those expressed or implied by these forward-looking statements. These factors include, but are not limited to, changes in the economies, political situations and markets in which the Group operates; changes in government priorities due to programme reviews or revisions to strategic objectives; changes in the regulatory or competition frameworks in which the Group operates; the impact of legal or other proceedings against or which affect the Group; changes to or delays in programmes in which the Group is involved; the completion of acquisitions and divestitures and changes in commodity prices, inflation or exchange rates.
All written or verbal forward-looking statements, made in this document or made subsequently, which are attributable to Cobham or any other member of the Group or persons acting on their behalf, are expressly qualified in their entirety by the factors referred to above. Cobham does not intend to update these forward-looking statements.
2. Cobham is a leading global technology and services innovator, respected for providing solutions to the most challenging problems, from deep space to the depths of the ocean. We employ around 10,000 people primarily in the USA; UK and Europe and Australia. We have customers and partners in over 100 countries, with market leading positions in: wireless, audio, video and data communications, including satellite communications; defence electronics; air-to-air refuelling; aviation services; life support and mission equipment.