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Recommended Offer for Thrane & Thrane A/S Successfully Completed Cobham plc ('Cobham') announces that its Recommended Offer for Thrane & Thrane A/S ('Thrane & Thrane'), as amended on 3 May 2012 and 21 May 2012, has successfully completed following receipt of the required merger authority approvals. As previously announced, the minimum acceptance condition of the Offer was satisfied on 8 May 2012 and Cobham has subsequently obtained acceptances for more than 90 per cent of the issued share capital of Thrane & Thrane. Cobham expects that settlement will be effected on 22 June 2012. However, special rules apply to Thrane & Thrane Warrants and Employee Shares with settlement expected at the latest by the end of July 2012. Compulsory Redemption and Delisting As per the Offer Document, Cobham now intends to proceed with the delisting of the Thrane & Thrane Shares from the NASDAQ OMX Copenhagen, with a view to completing the de-listing by the end of July 2012, and the Compulsory Redemption of minority shareholders, with a view to completing the process by mid December 2012. Further announcements in this regard will be made in due course.
Peter Nottage, vice president of Cobham Aviation Services said: "This is an extension of one of Cobham's foundation FIFO routes in Australia, strengthening our 12-year relationship with Minara Resources and its nickel operation in Western Australia. We are continuing to develop the services we offer to successful companies operating in Australia's growing mining and energy sectors."
Cobham Wins AUD$18 Million Contract from Minara Resources For Aviation Services PERTH, Australia - Cobham has extended its Fly-in Fly-out (FIFO) service contract with Minara Resources to the end of 2015, transporting workers to the remote nickel mine at Murrin Murrin, 900km northeast of Perth. The two-and-a-half year contract extension is worth AUD$18 million and builds on one of Western Australia's longest FIFO relationships, with Cobham's operations commencing in 2001. Minara Resources is one of Australia's top three nickel producers.
http://www.investegate.co.uk/Article.aspx?id=201206070700048130E
Cobham secures majority of Thrane and Thrane LONDON (SHARECAST) - Defence technology group Cobham says that the acceptance conditions set out in the terms of its revised offer for Danish satellite communications outfit Thrane and Thrane have now been satisfied. Since announcing last week that Thrane & Thrane shareholders will be offered DKK435 (Danish Krone) in cash for each share, an increase of DKK15 per share over Cobham's initial offer, the firm acquired a further 159,000 Thrane & Thrane shares, respecting 2.7% of its fully diluted share capital. The offer is subject to Cobham obtaining more than 50% of Thrane & Thrane’s outstanding share capital. Cobham now owns or has received undertakings in respect of a total of 2,978,934 shares, representing 50.1% of the company. The newest offer values the share capital of Thrane & Thrane, a manufacturer of equipment and systems for global mobile communication, at around £275m, a 2.6% increase from the initial offer. “The offer expires on May 21st 2012 unless extended in accordance with the offer document,” Cobham said. Shares were up 1% at 222p by 15:11 on Tuesday. http://www.sharecast.com/cgi-bin/sharecast/story.cgi?story_id=20082562 P.S. Here's a couple of links about SCLP, one of the hottest stocks at the moment: http://www.euroinvestor.com/community/discussionthread.aspx?threadid=252803 http://www.euroinvestor.com/community/discussionthread.aspx?threadid=253089
British satellite technology chiefs are pledging to bring something of Cobham to the state of Denmark. The defence and aerospace supplier has landed a satellite antennae rival, Thrane & Thrane, after a short-lived takeover battle. The acquisition, which has the recommendation of the Thrane board, presents an enlarged Cobham satellite communications threat to industry giants such as Honeywell of the United States. Cobham raised its offer to DKr435 (£47.50) a share from DKr420, valuing Thrane & Thrane at £275m. The British company won over Lars Thrane, the Danish group’s co-founder and its most significant shareholder with a 22% stake, with a promise that future business would come to Copenhagen and not be taken away, says The Times.
Fred Cahill, VP Cobham Antenna Systems, explained: "Cobham has been developing GPR technologies for many years and we continue to provide leading-edge Counter-Improvised Explosive Device (C-IED) capabilities for the most demanding military requirements."
Cobham Wins Orders in Excess of £13 Million in 2012 First Quarter For Ground-Penetrating Radar Systems LEATHERHEAD, Surrey - Cobham has been awarded a number of orders, totalling over £13M in the first quarter of 2012, to supply Ground-Penetrating Radar (GPR) and support solutions for a number of NATO customers. The orders will be delivered during 2012 from the Cobham Antenna Systems site in Leatherhead, UK.
http://www.investegate.co.uk/Article.aspx?id=201204160700253701B
Share tip summary Despite the post-results rally, Cobham's shares are rated below 10 times 2012's forecast earnings, which looks cheap compared with rivals. With an attractive dividend yield, the positive chart pattern and further costs savings to come, the shares are a buy. © Financial Times Ltd 2012. Investors Chronicle, FT and Financial Times are registered trade marks of The Financial Times Limited.
Concerns about the US, where Cobham generates over half its sales, look priced in too. President Obama's new security priorities "favour Cobham", argues Mr Devaney. Expanding US operations in the Pacific will need its air refuelling systems, satellite navigation and radar antennas. Digitising security services is also big business for the company's surveillance products division, while robots on the ground are hot property. Moreover, emerging markets, such as Brazil, are becoming more important for Cobham. Non-US defence and security customers now account for 28 per cent of its sales and Cobham has kit on both the Rafale ($165,000) and Typhoon ($1.4m) fighter jets, currently scrapping over a huge deal in India. Commercial aircraft markets contribute, too. Ramping up production of the Airbus A380 superjumbo ($250,000) and Boeing's 787 Dreamliner (up to $150,000) carrying Cobham antennas and other kit are all to the good. Mr Devaney is looking "extremely hard" to acquire suppliers with content on the 787, A350 and new fuel efficient A320neo. "There are plenty of targets," he says. A bid for Danish communications equipment company Thrane & Thrane has just been rejected. Strong cash generation could eliminate net debt next year, handing the boss a £700m war chest. Whether he gets a chance to use it is another matter, given persistent takeover rumours
Dwindling military spending in the west sparked a savage de-rating of the defence sector, and Cobham, with its heavy exposure to the Pentagon, still bears the scars. But better than expected results for 2011 indicate that the tide may be turning. What's more, the development of a bullish chart pattern suggests the shares could be fuelled for a rapid recovery. It's already under way. The 2011 figures showed that cost-cutting had increased profit margins at the core business by 1.7 percentage points to 20.8 per cent, firing underlying pre-tax profit 7 per cent higher to £328m. And £75m of cost savings a year in 2014 – £10m more than planned at no extra cost – should beef up margins further. Significantly, the jump in earnings was "the largest 'beat' of any European aerospace and defence stock yet this reporting season", according to analysts at Deutsche Bank. Chairman John Devaney expects "some underlying progress this year", probably 1-2 per cent in a market with limited visibility. However, that shouldn't deter investors. Glance at the price chart to see why. Cobham's price repeatedly found a floor around 168p last year, a level that also broke its fall in early 2009, points out Investors Chronicle's technical analyst Dominic Picarda. Having built a solid base in this area over some six months, the price has since turned decisively upwards once more. Its 50-day moving average recently crossed above its 200-day moving average, an event known to chartists as a 'golden cross'. The significance of this event is to confirm the new uptrend – and typically to hail fresh gains
Cobham Sell 12-Mar-12 £83,842.40 Andrew Stevens 38,247 @ 219.21p Cobham Sell 12-Mar-12 £79,131.51 Warren G Tucker 36,098 @ 219.21p
JP Morgan Cazenove upgrades Cobham from underperform to neutral, target price raised from 189p to 224p.
Jefferies has reiterated its buy rating and 230p target price for defence technology group Cobham, saying that the firm's full-year results appear 'robust and encouraging'. Jefferies says that if worst comes to worst, Cobham's strong balance sheet and cash flows gives it scope to reduce the dividend cover or to do further share buy-backs. "We believe that Cobham will ultimately strike a balance between investing for future growth, bolt-on acquisitions and a return of capital to shareholders. We sense that sentiment towards Cobham remains quite negative, but that could change rapidly, in our view."
Commenting on the results and outlook, John Devaney, Executive Chairman, said: "We have achieved modest organic growth in our core businesses and 13% underlying EPS growth at constant translation exchange rates, driven by efficiency savings from the Excellence in Delivery programme and good cost control. Conditions in our markets, including the positive trend in our export and commercial markets are expected to continue in 2012. The Board expects to achieve some underlying progress this year, before the full year net impact of the Analytic Solutions divestment and the share buy-back. "We have made significant steps towards focusing the portfolio on markets where we have technical differentiation and leading positions and we have received some very important, long term awards, building on our attractive market positions. Excellence in Delivery has achieved real operational improvements and better-than-expected efficiency savings and we have a strong balance sheet and a highly cash generative business model, giving us the flexibility to examine attractive acquisition opportunities and increase shareholder distributions. The US Government has confirmed defence and security priorities that favour Cobham and has made some progress in reconciling these to budgetary imperatives. The continued delivery of the strategy gives the Board confidence that we will continue to make progress over the medium term."
Group order intake increased 16% at constant translation exchange rates, with book-to-bill of 1.10 times, including important multi-year KC-46A, KC-390 and SATCOM awards · Modest organic revenue growth4 in core businesses (excluding the divested Analytic Solutions), with a strong performance in commercial and non US defence/security markets, together representing 56% of revenue · Underlying EPS growth of 12%, or 13% at constant translation exchange rates · Run rate of annualised Excellence in Delivery savings at the end of 2013 is now expected to increase from £65m to £75m, at unchanged cost of £131m · Excellent free cash flow3 of £288m, with strong operating cash conversion of 95% · Recommended full year dividend increase of 33%, underpinned by strong earnings and cash generation
http://www.investegate.co.uk/Article.aspx?id=201203070700228253Y
Cobham Awarded US $16.9 Million US Navy Contract for AN/ALQ-99 Low Band Transmitters LANSDALE, Pennsylvania -- Cobham has been awarded a US $16.9 million contract from the US Naval Air Systems Command (NAVAIR) to manufacture the AN/ALQ-99 Low Band Transmitter-Antenna Group for US Navy and Marine Corps EA-6B and E/A-18G electronic warfare aircraft. The new contract continues funding for a fourth full rate production lot, bringing the total number of production transmitters ordered to 233 of 315 required. To date 157 transmitters and 323 antenna products have been delivered. The contract's initial award procured 60 Low Band Transmitters and an associated number of antenna assemblies in a variety of configurations. The AN/ALQ-99 Low Band Transmitter-Antenna Group (LBT-AG), developed by Cobham Sensor Systems, has been in production since 2005. The LBT is designed to protect strike aircraft, ships, and ground troops by disrupting enemy radar and communications. It is flown on US Navy EA-6B Prowler and EA-18G aircraft and Marine Corps EA-6B aircraft, and has been used in combat operations. This award continues a long tradition of Cobham support to the Navy's mission success in harm's way. Cobham's support to the Navy extends beyond Airborne Electronic Warfare. The Low Band Transmitter complements other ALQ-99 work, to include Next Generation Jammer, the Next Generation Airborne Electronic Attack study, and the fleet's Integrated Topside (InTop) and Surface Electronic Warfare Improvement Program (SEWIP). The original base firm fixed price contract was competitively procured. Deliveries will continue immediately beyond the currently contracted Full Rate Production Lots, and are expected to continue through 2014. The contract also allows for up to three more annual options to procure the balance of LBT-AG systems.
http://www.investegate.co.uk/Article.aspx?id=201109210700136210O
Cobham, the aerospace and defence group, is an innovative company working in a difficult market, according to the Investment Column in the Independent. Best known for its heavy aviation engineering, the company produces pipes and other devices for the oil tankers used to refuel the RAF aircraft flying to Libya and the bomb racks used in Boeing's F15E jets. Yesterday, it agreed to buy California's Trivec-Avant Corporation, a maker of satellite antennas for transport and logistics companies, for $126m (£80m), with an additional payment of up to $18m if it performs really well. It also announced a new $60m contract to supply an aerial refuelling pod for the KC-390 tanker aircraft being developed by Brazil's Embraer. Overall, Cobham appears to be doing everything right and its first-half results were encouraging. The trouble, however, is that about 70 per cent of its sales come from military customers at a time when many countries, including Britain and the US, are significantly cutting budgets as part of severe austerity programmes. Hold, says the Independent.
Following the selection announcement, Iain Gibson, vice president of Cobham Mission Equipment said: "Cobham Mission Equipment is delighted with its selection by Embraer and the Brazilian Air Force to provide the wing air refuelling pod solution for the KC-390 following a rigorous competitive tendering process. This is an important and significant programme with a new customer and provides a platform for Cobham to further grow its business in Brazil. It also serves to underline Cobham's position as the world leader in providing air to air refuelling systems. We are confident that the wing pod solution for the KC-390, the basis of which has been designed and qualified to the latest and most stringent military requirements, will provide an optimum solution for the KC-390."
Cobham Wins US$60m Initial Contract from Embraer to Provide Aerial Refuelling Systems for Brazilian KC-390 Tanker Aircraft WIMBORNE, United Kingdom - Cobham has been selected to develop and supply the Wing Aerial Refuelling Pod for the KC-390 tanker aircraft under development by Brazil's Embraer and has received an order with an initial contract value in excess of US$60 million. Air refuelling operations will be a key tactical role of the KC-390 following its introduction into service, scheduled to commence in 2015. Selection by Embraer follows a comprehensive competitive process and reflects Cobham's unrivalled experience in the design, development and delivery of air refuelling systems. Cobham will supply Embraer with one of its state-of-the-art air refuelling pods, specially modified to fit the KC-390. The system architecture will be tailored to meet the aircraft's air-to-air refuelling capability requirements, and enable refuelling of a range of fixed and rotary-wing aircraft. Embraer's launch customer for the KC-390 is the Brazilian Air Force and it expects to secure significant additional orders from export customers.
http://www.investegate.co.uk/Article.aspx?id=201109150700212693O
Andy Stevens, Cobham Chief Executive Officer, said: "The acquisition of Trivec-Avant Corporation brings us a range of SATCOM antenna products and communication related technologies that are highly complementary to our existing business, together with opportunities to win further work from a long established customer base, as well as from our multiple routes to market."