REG - Cohort PLC - Full Year Trading Update

CohortAnnouncement

23/05/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240523:nRSW5474Pa&default-theme=true

RNS Number : 5474P  Cohort PLC  23 May 2024

 One Waterside Drive

 Arlington Business Park

 Reading

 Berks

 RG7 4SW

        23 May 2024

 

COHORT PLC

("Cohort" or "the Group")

 

Full Year Trading Update

 

Performance slightly ahead of expectations

Record closing order book

 

Cohort, the independent technology Group, today provides an unaudited trading
update for its financial year ended 30 April 2024.

 

Summary

 

·      Trading performance for the year ended 30 April 2024 is slightly
ahead of expectations, with growth in revenue and profits compared to the year
ended 30 April 2023.

·      Strong net funds of c.£23m, ahead of expectations (30 April
2023: £15.6m; 31 October 2023: £13.3m).

·      Very strong order intake of c.£387m (2023: £218m)

·      Record closing order book of c.£518m (30 April 2023: £329.1m)
including the £135m Royal Navy countermeasures contract awarded to SEA in
March 2024

·      Order book underpins c.£180m (90%) of current market revenue
expectations for the year ended 30 April 2025 (2024: £145m, 84%).

 

 

FY24 year-end update

 

Following a strong second half profit performance, Cohort has delivered
results slightly ahead of expectations for the year. The Group has seen robust
growth within the Sensors and Effectors division, offset by somewhat weaker
trading seen within the Communications and Intelligence division.

 

Sensors and Effectors saw robust growth across all its constituent businesses
but particularly within Chess and SEA. Chess continued its growth trajectory
following its turnaround performance last year, with SEA continuing to secure
and deliver on large naval orders.

 

In Communications and Intelligence, as expected, UK MOD product orders
decreased from the high levels seen in 2022/23, whilst we continued to see
contract delays within Portugal.

 

The closing net funds position was ahead of expectations and arose from
favourable timing of working capital flows and delayed capital expenditure due
to adverse winter weather, on our new facility in Germany, which will now take
place in the 2024/25 financial year.

 

The order intake is c.1.9x the annual revenue (2023: 1.2x). Following
significant contract awards during the year, the order book exceeded half a
billion pounds for the first time, with on-order revenue now extending to
2037. The order intake performance was c.80% higher than last year.

 

The year end order book underpins c.£180m (90%) of the current consensus
market revenue expectations for 2024/25, an improvement on the year just
finished.

 

Outlook for FY25

 

Cohort continues to see good demand for our products and services from both
our domestic customers, especially the UK, and from export customers. The
drivers for increased investment in defence have amplified during the year,
with the ongoing conflicts in Ukraine and the Middle East, coupled with
tensions in the Indo-Pacific region leading to increased global defence
spending.

 

The Royal Navy's recent order for the Ancilia Trainable Decoy Launcher System,
was a significant milestone for the Group. It represents a strong vote of
confidence in the product; a fully UK designed and built solution for which we
see encouraging export prospects. As stated in our announcement of 26 March
2024, this together with other recent order wins, is expected to materially
enhance the Group's earnings.

 

We have an encouraging pipeline of order opportunities for the current year,
providing a positive outlook for organic growth in the years ahead. Overall,
our expectations for the coming financial year remain unchanged.

 

Notice of FY24 results

 

It is the Group's intention to issue its preliminary announcement for the year
ended 30 April 2024 in late July 2024.

 

Andrew Thomis, Chief Executive of Cohort, said:

 

"Cohort's performance was slightly ahead of our previous expectations for the
year with growth in revenue and profits. Following strong order intake, we
have a record closing order book with encouraging prospects for further
orders. Our strong closing net funds position provides a robust platform from
which to invest in the business and, potentially, acquisitions. We expect to
continue our organic growth in 2024/25 and beyond."

 

 

ENDS

 

 

For further information please contact:

 

 Cohort plc                                                              0118 909 0390
 Andrew Thomis, Chief Executive
 Simon Walther, Finance Director
 Raquel McGrath, Company Secretary

 Emily McBride, Group Head of Marketing & Corporate Communications

 Investec Bank Plc (NOMAD and Broker)                                    020 7597 5970
 Carlton Nelson, Christopher Baird

 MHP                                                                     07817 458 804
 Reg Hoare, Ollie Hoare, Hugo Harris                                     cohort@mhpgroup.com

 

 

NOTES TO EDITORS

 

Cohort plc (www.cohortplc.com (http://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 1,250 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

·      EID designs and manufactures advanced communications systems for
naval and military customers. Cohort acquired a majority stake in June 2016.
www.eid.pt (http://www.eid.pt/)

 

·      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
(http://www.mass.co.uk/)

 

·      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 (http://www.marlboroughcomms.com/)

 

Sensors and Effectors

·      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 (http://www.chess-dynamics.com/)

 

·      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 (http://www.elac-sonar.de/)

 

·      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
(http://www.sea.co.uk/)

 

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTFLFITEVIFFIS