- Defence and aerospace group Cobham said it planned to reinstate a progressive dividend despite reporting a fall in profits owing to a strong pound and divestment.

For the 12 months to 31 December, statutory pre-tax profits fell by 8% to £196m, while revenues rose to £1.86bn from £2.09bn a year earlier.

Revenue was adversely impacted by divestments and currency translation with organic revenue 2% lower.

The organic result was driven by an adverse revenue adjustment of £79.8m owing to a settlement reached with Boeing related to damages over the company's delayed KC-46 aerial refuelling programme.

Order intake rose to £1,946.3m for the year, from £1,915.4m a year earlier.

The company said it intended resume dividend payments, with the full-year dividend expected to be 1.0p a share.

'We can see the benefits of our improvement actions starting to come through across most of the business, particularly so in Mission Systems. However, Advanced Electronic Solutions underperformed,' said David Lockwood, Cobham Chief Executive Officer.

'Overall the Board's expectations for progress in 2019 remain unchanged with a range of potential outcomes. We continue to believe that there are considerable opportunities to improve the performance of the Group over the medium term and our continuing focus on customers, culture, operational improvement, business simplification and cash will allow us to realise this potential.'

At 8:09am: [LON:COB] Cobham PLC share price was -1.15p at 118.6p

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