COB Cobham News · Revenue 6% higher, benefiting from favourable currency translation. Organic5 revenue growth of 1% · Underlying operating profit of £210.3m, slightly ahead of expectations · Progressing delivery on the onerous contracts provided for in 2016, including KC-46, although risks and challenges remain · Strong free cash flow generation as a result of management focus, later phasing of 2016 onerous contract cash flows, lower capital expenditure and £27m of advance customer receipts · More resilient Balance Sheet with year-end gearing ratio at 1.3x and US545m revolving credit facilities refinanced for five years or over · Agreed divestment of AvComm and Wireless test and measurement for US455m in cash; transaction will increase focus, reduce risk and further strengthen Balance Sheet · Unchanged expectations for 2018 before divestment and currency translation
Analysis - I think if stocks return to their rally we could se a test of the top of this range near the 150p mark - but this is dependant on the bull market returning.