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Defence firm extends miserable streak

Defence firm Cobham (COB) is on its heels after warning on profit for the fifth time in a little over a year (17 Feb).

Trading profit for 2016 was guided at £225m compared with previously trimmed guidance of £245m given a month ago. There are writedowns adding up to more than £750m.

The company also says meeting 2017 expectations will be challenging and hints further action may be required to shore up its balance sheet.

While this kitchen-sinking exercise by recently appointed chief executive David Lockwood and finance director David Mellors could interest value investors it is worth noting a big warning and £500m rights issue last summer proved insufficient to revive the company’s fortunes.

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