Shares in Cobham (LON:COB) plunged over 10 percent on Thursday, after the company confirmed that it had not received payment from one of its biggest clients for recent work on an aircraft.

The dispute, between Cobham and Boeing over work on a KC-46 aerial tanker aircraft, escalated after Cobham said Boeing was withholding payment due to “as yet unquantified damages assertions”.

It did however warn that challenges with the KC-46 programme will add around £40 million in extra costs to complete the work. This comes alongside Wednesday’s news that there had been another $418 million in cost overruns due to other complications.

The dispute comes ahead of Cobham’s six month interim results, which are set to be released on the 3rd August. It expects to announce no change to its full year 2018 underlying profit guidance.

Shares in Cobham (LON:COB) are currently down 9.92 percent at 118.55 (1029GMT).