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Defense industry   £245 million

Cobham profit below expectations, dividend not recommended

CobhamCobham posted group trading profit below guidance for the year ended December 31 and said it was not recommending a final dividend.

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READ MORE Daily Mail & General Trust statutory pre-tax profit rose to £247m

The company said group trading profit for the year came in at £245 million, below the range of £255m to £275m set out in the update back in October. Cobham said the detailed year end close and audit is ongoing but is not expected to result in an increased trading profit.

"The new management team is commencing a thorough closing balance sheet review, including major contracts and asset carrying values.

"The trading profit disclosed above is before any adjustments that may arise from this review and, in particular, there is significant uncertainty surrounding the outcome of the KC-46 tanker programme," the company said.

Net debt at the end of December stood at £1.03bn versus £1.21bn in 2015.

As a result of disappointing trading and higher-than-expected net debt, Cobham will not be recommending a final dividend payment for the financial year 2016 and said the dividend policy for 2017 and beyond will be set out following a full review of the group's financial situation.

Preliminary results for the year to the end of December are due on 2 March.

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