FY25 trading update and a new record order book
In a Trading Update for the year to 30 April 2025, Cohort reports strong growth and a record closing order book of £615m, materially surpassing the previous record of £518.7m. The Group expects FY25 performance in line with market expectations, underpinned by strength in the Communications & Intelligence (C&I) division, whilst Sensors & Effectors (S&E) performance was broadly comparable to FY24.Order intake was c.£285m (1.1x revenue) and excludes an additional £80m of orders acquired with EM Solutions; the comparable FY24 figure of £387m which included the single Royal Navy order for £135m, which if excluded indicates 12%YoY growth.
Closing net funds stood at £5m, ahead of Group expectations following the acquisition of EM Solutions for £75m. The recent disposal of the transport operations of SEA will reduce the non-defence component of revenue to only 3%.
The Group reports continuing demand for its products and services, notably in light of the ongoing conflict in Eastern Europe and tensions in Indo-Pacific, whilst also awaiting the imminent outcome of the UK’s Strategic Defence Review. The addition of EM Solutions also aligns with defence initiatives in Australia and Indo-Pacific, backed by the AUKUS strategic alliance.
Whilst noting the strength of the share price, our outlook is unchanged for now. FY25 reporting in July will provide the opportunity to both review forecasts and reassess our Fair Value calculation.
Cohort is a holding company. Co. operates through its subsidiaries: Empresa de Investigacao e Desenvolvimento de Electronica, S.A., which is engaged in the fields of electronics, tactical and naval communications, command and control; MASS Consultants Limited, which is an electronic warfare operational support, cyber security, secure ICT networks and support to operations business serving customers primarily in defense and security markets; and Marlborough Communications Limited, which is a supplier of electronic communications, information systems and signals intelligence technology to the defense and security sectors.
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