11th Feb 2015 07:47
LONDON (Alliance News) - Cobham PLC on Wednesday said it will book a charge in its 2014 results related to its air-to-air refuelling development programmes and said the same problems have resulted in contract delays.
The FTSE 250-listed engineering company said it will recognise a GBP15 million one-off pretax provision in its underlying results for the year to the end of December.
The charge is being made due to cost increases and risks related to a small number of hardware subsystem development and design maturity issues in its air-to-air refuelling operations, it said.
As a result of the same issues, the company said some contract milestones it expected to meet in 2014 will be delayed to 2015, delaying around GBP30 million in cash due to Cobham.
The company said it is working with its customers to resolve the issues and does not expect any significant impact on its financial performance.
It said all other parts of the business are performing in line with expectations.
Cobham will post its full-year results on March 5.
By Sam Unsted; [email protected]; @SamUAtAlliance
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