Avaliação cobham

Assignment Case Study Course: | Financial Management | Teacher: | XU Qin | Students: | Joao Ribeiro, Rémi Varennes, Julia Rittberg, Heiko Kirchhain, Sophie Parachey |

Company chosen: | COBHAM | |

Cobham specializes in meeting the demand for data, connectivity and bandwidth in defense, security and commercial environments.

I. Studying main trends on the period

Focus on the Growth:

£m | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | Revenue | 735 | 833 | 983 | 970 | 1 012 | 1 061 | 1 467 | 1 880 | 1 903 | 1 854 | Cost of sales | 526 | 585 | 715 | 682 | 679 | 717 | 1 009 | 1 284 | 1 298 | 1 271 | General expenses | 104 | 120 | 139 | 151 | 144 | 178 | 330 | 309 | 375 | 321 | Operating profit | 104 | 127 | 130 | 137 | 189 | 166 | 129 | 287 | 230 | 262 | Net income | 45 | -13 | 85 | 98 | 148 | 132 | 96 | 186 | 153 | 188 |

The increase in sales for the last 10 years (+9.7% on average) is primarily explained by changes in the scope of consolidation. It relates to an external growth strategy.

Expectations * Cobham’s organic revenue growth in the ten months to October 2012 had been broadly flat in line with its expectations. It expects this to continue for the full year and sees its 2012 earnings per share to be similar to the prior year. * In response to the U.S. slowdown, Cobham, whose equipment aids communication between military vehicles and aircraft, plans to extend its ongoing restructuring program for a further two years, until the end of 2015. * It will invest an extra 60 million pounds in the restructuring scheme in the hope of saving around 30 million pounds per year on completion. * Overall, Cobham is therefore planning for total group revenue to decline organically by low-to-mid single digits in 2013.

II. Cash flows forecasting and DCF analysis

(£ millions) | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | Sales | 735 | 833 | 983 | 970 | 1 012 | 1