- Revenue and profit up ‘strongly’
- Order backlog hits new record
- Shares up 40% already this year
Defence technology group Cohort (CHRT:AIM) showed yet again why it is a favourite with investors large and small by revealing a strong trading performance for the year to 30 April and a record book of new orders.
The shares, which have gained more than 40% this year, initially traded up 30p at £15.80 but succumbed a bout of profit-taking sending them 60p or almost 4% lower to £14.90.
RECORD ORDER FLOW
Without giving any precise figures, the firm said revenue and profit had seen ‘strong’ growth over the past year, in line with market expectations, driven by ‘excellent’ organic growth in Communications and Intelligence and helped by three months of earnings from EM Solutions which was acquired in January.
Order intake was some 12% above the previous year, excluding the large Royal navy contract signed in March 2024, while adding in the £80 million order book acquired with EM Solutions the total was more than £600 million, with on-order revenue stretching all the way to the mid-2030s.
‘The drivers for investment in defence remain strong, with the ongoing conflict in Eastern Europe and continuing tensions in the Indo-Pacific region leading to increased global defence spending’, said the company.
Meanwhile, the UK’s Strategic Defence Review, which is still pending, is expected to maintain a focus on technologies and capabilities, which sits nicely with the group’s product and service offering.
WHAT DID THE CEO SAY?
Chief executive Andrew Thomis flagged the company’s strong if in-line performance and the importance of targeted acquisitions in the UK and abroad.
‘We are excited about the integration of EM Solutions and the additional opportunities for growth it represents. Australia is an increasingly important strategic region, reflecting the increased security challenges in the Indo Pacific, and the creation of the AUKUS alliance.’
Analysing the trading update, Robin Speakman and Jamie Murray at Shore Capital said although the firm didn’t raise its 2025/26 guidance they saw ‘upside potential for outer-year estimates as macro tailwinds continue to build’.
‘The long-term opportunity remains attractive, underpinned by rising Western defence budgets and Cohort’s growing relevance within NATO supply chains,’ they added.
