The FY16 profit warning and rights issue announced with the Q1 trading statement reflect the limited progress Cobham has made in recent years. The main problem appears to be a lack of core organic performance and reliance on an M&A-driven strategy to instil growth. These are similar criticisms to those levelled at previous management teams. Cobham now appears vulnerable as the technology positions and assets are attractive, but it looks like a slow process to drive value recovery in its current form.
