Shares in Cobham (COB) were down a fifth after the beleaguered defence contractor issued another profit warning, saying it will book a £574m non-cash impairment on problems across several of its units. These include a £196m writedown against the wireless business unit, £186m against the integrated electronic solutions business and £192m against the semiconductor solutions segment. The group will also take a £150m charge on spiralling costs related to its contract to develop a mid-air refuelling tanker for Boeing.
Any adjustments that are of a recurring nature, or are 2016 trading items, will be taken against underlying trading profit. The end result is that the FTSE 250 constituent downgraded its 2016 trading profit to £225m after deducting £20m of year-end adjustments from last month's forecast. In January, it lowered its guidance to £245m after previously anticipating £255m to £275m.
