Cobham plc Settlement of Tax Dispute (0294Z)

TIDMCOB

RNS Number : 0294Z

Cobham plc

15 May 2019

15 May 2019

Legal Entity Identifier: 213800A41R9NL49E5632

Settlement of Tax Dispute

Cobham plc ('Cobham' or 'the Group') announces that it has reached an agreement with the UK tax authorities in respect of a significant, previously disclosed and long running dispute. This is in connection with the availability of interest deductions on one of the Group's internal financing structures, which was in place between 2008 and 2014. In the first half of 2019 Cobham will make a one-off net tax payment of GBP55m, together with a one-off interest payment of GBP14m, to finally settle the Group's exposure to this matter. This settlement is within the amounts previously provided by Cobham for tax.

Unrelated to this, and as disclosed in note 6 (Tax) of its 2018 Preliminary Results announcement, the Group continues to monitor developments relating to EC State Aid investigations. In April 2019, the EC's final decision on the UK Government's Controlled Foreign Company regime was that it partially represents State Aid. The UK Government has not yet announced how it would identify and seek to recover State Aid; Cobham estimates it could have additional tax payable of between GBPnil and approximately GBP60m.

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Enquiries:

 
 Cobham plc 
  Julian Wais, Director of Investor 
  Relations                             [phone] 
  MHP Communications 
  Reg Hoare/Tim Rowntree                [phone] 
 

Notes:

1. Cobham is a leading global technology and services innovator, respected for providing solutions to the most challenging problems, from deep space to the depths of the ocean. We employ around 10,000 people primarily in the USA; UK and Europe and Australia. We have customers and partners in over 100 countries, with market leading positions in: wireless, audio, video and data communications, including satellite communications; defence electronics; air-to-air refuelling; aviation services; life support and mission equipment.

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May 15, 2019 02:00 ET (06:00 GMT)