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Unaudited Results for the six months ended 31 October 2015

Published 14th December 2015

Cohort plc, the independent technology group, today announces its unaudited results for the six months ended 31 October 2015.

Highlights include:

  • Adjusted* operating profit up 40% at £3.5m (2014: £2.5m).
  • Revenue up 32% to £49.7m (2014: £37.6m).
  • Order intake of £55.7m (2014: £64.5m).
  • Strong closing order book of £140.0m (30 April 2015: £134.0m).
  • Net funds of £11.4m (31 October 2014: £6.7m; 30 April 2015: £19.7m).
  • Interim dividend increased by 19% to 1.90 pence per share (2014: 1.60 pence per share).
  • Adjusted* earnings per share 29% higher at 7.11 pence (2014: 5.50 pence).

Operational highlights:

  • Contract wins announced since final results:
    • MoD Hearing Protection £11.2m
    • Electronic Warfare Operational Support Services to overseas customer > £3m
    • Training and Exercise Support for MoD £9.7m
  • New banking facility agreed since period end of £25m.

Looking forward:

£48.4m of 31 October 2015 order book is deliverable in the second half and underpins 90% of the
consensus forecast revenue (excluding EID) for the full year.
Prospects for further order intake in the second half across the Group are encouraging.
Revised agreement to acquire 57% of EID with agreement to acquire the balance once Portuguese
Government approval is given

* Adjusted figures exclude the effects of marking forward exchange contracts to market value, amortisation of other intangible assets and exceptional items.

Commenting on the results, Nick Prest, Chairman of Cohort, said:

“The closing order book of £140.0m (30 April 2015; £134.0m) and recent order wins provide a good underpinning to the second half of the year. We expect, as seen in the last few years, a much stronger performance than in the first half.”

“The Strategic Defence and Security Review recently concluded in the UK gives support to existing programmes, such as submarines, in which Cohort is engaged and foresees greater expenditure in areas such as Cyber and Special Forces in respect of which Cohort has strong and relevant capabilities.”

“We expect to complete the initial stage of the EID acquisition, giving Cohort control, early in 2016. We will report 100% of the EID result from the time of this acquisition, and we expect EID to deliver a small but positive contribution to Cohort’s 2015/16 financial year with more significant contributions thereafter.”

“Overall, Cohort’s order book and pipeline, market positions and strong funding position continue to provide confidence for its future prospects.”