Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  London Stock Exchange  >  Cobham plc    COB   GB00B07KD360

COBHAM PLC

(COB)
  Report  
Real-time Quote. Real-time CHI-X - 11/15 11:30:00 am
154.65 GBp   -0.06%
11/08COBHAM : Form 8.3 - cobham plc amendment
PU
11/08COBHAM : Form 8.3 -
PU
11/08COBHAM PLC - FORM 8.3 - THE VANGUARD GROUP, INC. : Cobham plc
PU
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Cobham Shares Tumble After Company Announces Rights Issue

share with twitter share with LinkedIn share with facebook
share via e-mail
0
04/26/2016 | 05:15am EST

Shares in British defense equipment supplier Cobham PLC tumbled almost 20% after the company announced it would raise about £ 500 million ($725 million) in equity to ease mounting debt concerns.

The company that makes air-to-air refueling systems for Boeing Co. and Airbus Group SE military tanker planes also said full-year earnings would be £ 15 million below previous expectations after a slow start to the business. Profit for the first quarter ended March 31 was £ 15 million, down from £ 50 million for the same period a year earlier, the company said.

Cobham said it would raise the money by a way of a rights issue. The entire amount of the rights issue has been fully underwritten on a standby basis by Bank of America Merrill Lynch and Jefferies International Ltd., it said. The company hopes to complete the rights issue by midyear, it said.

Cobham's debt levels haven't been coming down as planned, in part reflecting the weak British currency and investments made to secure new business. Debt, which rose to $1.3 billion at the end of March, was at risk of reaching a covenant limit in June, driving the company to shore-up its financial position.

"We haven't reached this decision lightly," Chief Executive Bob Murphy said. "We needed to get the level of debt in the company addressed rapidly," he added. The move should bring net debt to about two times earnings before interest, taxes, depreciation and amortization.

The company said it planned to pay a £ 126 million dividend, the same total as last year. The decision to maintain the dividend even as the company pursued a rights issue drew criticism from analysts.

Cobham said it would seek to cut costs through restructuring measures, a reduction in overhead, and by outsourcing some manufacturing. It is targeting £ 30 million in annual savings by the end of the year, with £ 10 million to be booked for 2016.

Earnings in the first quarter were hit by delayed shipments in its wireless business and a £ 9 million charge against the business, cost increases on some development programs, and lower activity in its passenger flying operations.

Shares in the company were trading down 41.80 pence, or 19%, at 173.40 pence in London at 0840 GMT.

Write to Robert Wall at robert.wall@wsj.com and Olga Cotaga at olga.cotaga@wsj.com

Stocks mentioned in the article
ChangeLast1st jan.
AIRBUS SE 0.40% 136.4 Real-time Quote.61.82%
BANK OF AMERICA CORPORATION 0.70% 32.93 Delayed Quote.33.08%
BOEING COMPANY (THE) 1.15% 371.68 Delayed Quote.12.40%
COBHAM PLC -0.26% 154.55 Delayed Quote.58.36%
E.ON SE 0.12% 9.16 Delayed Quote.6.05%
ONE STOP SYSTEMS, INC. -1.27% 2.34 Delayed Quote.22.16%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on COBHAM PLC
11/08COBHAM : Form 8.3 - cobham plc amendment
PU
11/08COBHAM : Form 8.3 -
PU
11/08COBHAM PLC - FORM 8.3 - THE VANGUARD : Cobham plc
PU
11/08COBHAM : Form 8.5 (EPT/NON-RI)
PU
11/08COBHAM : Form 8.5 (EPT/NON-RI)- Cobham plc
PU
11/08COBHAM : Form 8.5 (EPT/RI)- Cobham plc
PU
11/08COBHAM : Form 8.5 (EPT/RI)
PU
11/08COBHAM : Form 8.3 - Cobham plc
PU
11/07COBHAM : Advanced Electronic Solutions Wins Gold Award From U.S. Department of L..
BU
11/07COBHAM : Form 8.5 (EPT/RI) - Amendment
PU
More news
Financials (GBP)
Sales 2019 1 984 M
EBIT 2019 228 M
Net income 2019 94,3 M
Debt 2019 134 M
Yield 2019 0,65%
P/E ratio 2019 42,0x
P/E ratio 2020 29,3x
EV / Sales2019 1,92x
EV / Sales2020 1,80x
Capitalization 3 678 M
Chart COBHAM PLC
Duration : Period :
Cobham plc Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends COBHAM PLC
Short TermMid-TermLong Term
TrendsBearishBullishBullish
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus HOLD
Number of Analysts 11
Average target price 162,55  GBp
Last Close Price 1,54  GBp
Spread / Highest target 10 914%
Spread / Average Target 10 431%
Spread / Lowest Target 9 035%
EPS Revisions
Managers
NameTitle
David C. Lockwood Chief Executive Officer & Executive Director
Jamie Robert Provan Pike Chairman
Chris Shaw Chief Operations Officer
David Anthony Mellors Chief Financial Officer & Executive Director
Alison J. Wood Independent Non-Executive Director
Sector and Competitors
1st jan.Capitalization (M$)
COBHAM PLC58.36%4 749
UNITED TECHNOLOGIES CORPORATION39.28%126 441
LOCKHEED MARTIN CORPORATION49.01%110 053
RAYTHEON41.31%60 346
NORTHROP GRUMMAN CORPORATION44.43%59 945
GENERAL DYNAMICS CORPORATION17.50%53 449