* First-half underlying profit up 32 percent at 141 million sterling
* Expects high single-digit revenue growth over medium term
* Half-year dividend up 10 percent at 1.48 pence a share
* COO Andy Stevens to become new chief executive
(Adds comments by CEO, analyst; more details, updates shares)
By John Bowker
LONDON, Aug 6 (Reuters) - British aerospace and defence electronics group Cobham posted a big jump in its first-half profit on Thursday and said it would continue its acquisition strategy, while naming Chief Operating Officer Andy Stevens as its new CEO.
Underlying pretax profit in the first half of the year rose 32 percent to 141 million pounds ($239 million), in line with market expectations, on revenue up over 50 percent at 952 million pounds, boosted by a number of acquisitions including the U.S. electronics business M/A COM which it bought last year for $425 million.
Cobham's shares, down 14 percent this year, were up 3.6 percent at 185 pence a share at 0853 GMT, valuing the company at 2.12 billion pounds.
Chief Executive Allan Cook, who will be replaced by COO Stevens when he retires at the end of the year, said "strategic acquisitions" were still on the agenda despite a slowdown in its deal rate in 2009.
"We are looking at deals right now. Size is not important -- we are looking for deals in high growth, high tech areas with strong management," he told reporters.
He added that a potential growth area for the group is the cyberspace defence market, or internet security, where the company is seeking to grow market share.
MILITARY ROBUST
Cobham said organic revenue growth was expected to be in the high single digits over the medium term, while the first-half dividend was raised 10 percent to 1.48 pence a share.
The company, which in its infancy pioneered in-flight aircraft refuelling, said military and government work was helping to offset a slump in its commercial business.
Military and government organic revenue was up 7 percent, while commercial fell 13 percent.
"Sales were relatively weak underlying, but that was more than compensated for by better than expected margins," Evolution analyst Nick Cunningham said in a note.
Cobham added that Chairman David Turner would retire from the company in 2010 after taking up a position in Australia.
The company last week won a $2.4 billion, 10-year contract alongside partner Northrop Grumman to supply battlefield communications equipment to the U.S. army, but is also being investigated by the U.S. government over parts used in certain military products. ($1=.5890 pounds) (Editing by Greg Mahlich)