Technology and services provider Cobham (LON:COB) saw shares rise nearly 2 percent at market open on Thursday, after reporting fourth quarter trading in line with expectations.
The group said the results were proof its turnaround plan was taking shape, and it maintained its full year outlook on performance.
The equipment supplier said it continues to have “confidence in its medium-term prospects”, adding that it remained focused on mitigating any risks associated with onerous contracts. It also confirmed that it would continue to support tests on both the KC-46 aircraft refueling tanker program under its development and a production contract.
Looking forward, the group said cash generation was likely to be limited in 2018, partly due to the pattern of receipts and payments relating to its onerous contracts, which will likely weigh on cash outflows in the first half of the year.
“Cobham’s turnaround has continued in the first quarter and our overall trading performance within our ongoing business was in line with the Board’s expectations,” said David Lockwood, Cobham Chief Executive Officer.
Shares in Cobham (LON:COB) are currently trading up 1.86 percent at 117.55 (0833GMT).
