Group revenue increased by 2%, with acquisitions trading ahead of plan
Strong growth in commercial markets offset by continued weakness in defence/security markets resulted in 4% Group organic revenue decline
Further progress in bringing more balance to the portfolio, with commercial now 35% (2012: 31%) of Group revenue and good progress with strategic objectives
Incremental savings in Excellence in Delivery well ahead of plan, with site integrations being accelerated
Group Private Venture investment increased to 6.2% (2012: 5.3%) of revenue, with focus on growth markets
Statutory EPS lower, including non-cash goodwill impairment of Tactical Communications & Surveillance, following significant decline in US land related revenue
Recommended full year dividend increase of 10%, continuing the Group's long standing, progressive dividend policy
Commenting on the results and outlook, Bob Murphy, Chief Executive Officer, said:
"We have delivered results in line with our previously stated guidance, in what remains a challenging US defence/security market. We have made good progress in the year against our strategic objectives, including increased technology and other organic investments and accelerated benefits from our operational excellence programme. We are now realigning our organisational structure to enable the next stage of development.
"Trading conditions are expected to remain challenging in 2014 with potentially significant foreign currency headwinds and continued pressure on US defence/security investment accounts. However, we anticipate that our strong and growing positions in attractive commercial markets and the generally positive prospects for our non-US defence/security markets will partially offset this, and we continue to plan for Group organic revenue to decline by low-to-mid single digits in 2014. We will continue to take further actions as appropriateto substantially mitigate the impact of this organic decline.
"Cobham has innovative technology and know-how supported by market leading positions, which allows us to leverage across our markets. As a result, we continue to anticipate that Cobham can deliver mid-single digit organic revenue growth from 2015."
