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One Waterside Drive
Arlington Business Park
Reading
Berks
RG7 4SW
24 September 2024
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COHORT PLC
("Cohort" or "the
Group")
AGM UPDATE
ANNOUNCEMENT
Cohort, the AIM listed independent technology group,
is today holding its Annual General Meeting
("AGM") and issues the following comments on current trading and
outlook.
Cohort achieved record financial
results in the year ended 30 April 2024 ("FY2024"), with strong
performances in revenue, adjusted operating profit, order intake
and net funds. The year ended with a robust cash position and a
record closing order book of £518.7m, stretching out to 2037, with
strong revenue cover for the current financial year ending 30 April
2025 ("FY2025").
Based on trading and order intake to
date, we expect the first half trading performance to be
significantly ahead of the same period last year, driven by the
strong order book in Sensors and Effectors. We also expect to see
an improved net margin for the first half. In line with past
experience, we expect to see a continued weighting to the second
half in the year as a whole.
Following contract wins since the
start of FY2025 of over £120m, the order book on 20 September 2024
stood at over £575m, representing consensus FY2025 revenue cover of
around 90%. We are optimistic about our prospects for further
significant new orders, given demand for our products and services
from both our domestic and export customers. For FY2025, we now
forecast that the Group's revenue and profit performance will be a
little ahead of our previous expectations.
As previously disclosed in the
FY2024 Final Results announcement, given planned capital
expenditure and expansion in working capital to support our record
order book, net funds at the end of FY2025 are expected to be
slightly lower than the £23.1m reported at the end of
FY2024.
The Group's strategy continues to be
to grow both organically and through acquisitions. Current
geopolitical tensions are driving increased investment in defence
and those are expected to continue for some years to come, creating
the conditions for organic growth. Our business model is also well
adapted to generating value from carefully targeted acquisitions,
and we continue to seek opportunities for these in the UK and
elsewhere.
ENDS
For
further information please contact:
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Cohort plc
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0118 909
0390
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Andy Thomis, Chief
Executive
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Simon Walther, Finance
Director
Emily McBride, Group Head of
Marketing and Corporate Communications
Raquel McGrath, Company
Secretary
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Investec Bank Plc (NOMAD and Broker)
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020 7597
5970
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Carlton Nelson, Christopher
Baird
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MHP
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07817
458804
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Reg Hoare, Ollie Hoare, Hugo
Harris
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cohort@mhpgroup.com
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NOTES TO
EDITORS
Forward-looking
statements
This announcement may include
statements, beliefs or opinions that are, or may be deemed to be,
"forward-looking statements". These forward-looking statements may
be identified by the use of forward-looking terminology, including
the terms "believes", "estimates", "plans", "projects",
"anticipates", "targets", "aims", "continues", "expects",
"intends", "hopes", "may", "will", "would", "could" or "should" or,
in each case, their negative or other variations or comparable
terminology, or by discussions of strategy, plans, objectives,
goals, future events or intentions. No representation or warranty
is made that any of these statements or forecasts will come to pass
or that any forecast results will be achieved. Forward-looking
statements may and often do differ materially from actual results.
Any forward-looking statements contained in the announcement speak
only as of their respective dates, reflect Cohort's current view
with respect to future events and are subject to risks relating to
future events and other risks, uncertainties and assumptions
relating to Cohort's business, results of operations, financial
position, liquidity, prospects, growth and strategies.
Except as required by any applicable law or
regulation, Cohort expressly disclaims any obligation or
undertaking to release publicly any updates or revisions to any
forward-looking statements contained in this announcement or any
other forward-looking statements it may make whether as a result of
new information, future developments or otherwise.
Cohort plc (www.cohortplc.com)
is the parent company of six innovative, agile and
responsive businesses based in
the UK, Germany and Portugal, providing a wide
range of services and products for domestic and export customers in
defence and related markets.
Cohort (AIM: CHRT) was admitted
to London's Alternative Investment Market in March 2006.
It has headquarters in Reading, Berkshire and
employs in total over 1,300 core staff there and at its other
operating company sites across the UK, Germany,
and Portugal.
The group is split into two segments
- Communications and
Intelligence, and Sensors and Effectors:
Communications and Intelligence
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· EID
designs and manufactures advanced communications systems for naval
and military customers. Cohort acquired a majority stake in June
2016. www.eid.pt
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· MASS
is a specialist data technology company serving the defence and
security markets, focused on electronic warfare, digital services,
and training support. Acquired by Cohort in August
2006. www.mass.co.uk
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MCL designs, sources, and
supports advanced electronic and surveillance technology
for UK end users including the MOD and other government
agencies. MCL has been part of the Group since July
2014. www.marlboroughcomms.com
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Sensors and Effectors
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· Chess
Dynamics offers surveillance, tracking and fire-control systems to
the defence and security markets. Chess has been part of the Group
since December 2018. www.chess-dynamics.com
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· ELAC
SONAR supplies advanced sonar systems and underwater communications
to global customers in the naval marketplace. Acquired by
Cohort in December 2020. www.elac-sonar.de
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·
SEA delivers and supports
technology-based products for the defence and transport markets
alongside specialist research and training services. Acquired
by Cohort in October 2007. www.sea.co.uk
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