Strong H1 24 results backed by a record order book
For the six months to 31 October 2023 Cohort reported revenue of £94.3m, +22%YoY, EBIT (adj.) of £6.0m, +20%YoY and (adj.) EPS of 10.36p (adj. dil., 10.33p). The closing order book further increased to £353.9m (FY23, £329.1m). With £90m of orders deliverable in H2 the Group reports that 95% of market consensus revenue outlook is covered, whilst the order book has longevity to 2033.The net cash position was £13.3m compared to £15.6m at year-end FY23 and H1 23 net debt of £0.6m boosted by operating cashflow of £10.3m (H1 23: £7.7m). The Group raised the Interim dividend by 10% to 4.70p/share, maintaining the track record of progressive returns.
Cohort noted revenue growth in each division underpinned by UK MOD demand. Revenue in the Communications & Intelligence (C&I) division (EID, MASS and MCL) increased 32.3%YoY to £43.9m (46.3% of total). Revenue in the Sensors & Effectors (S&E) division (Chess Dynamics, ELAC Sonar and SEA) grew 14.7%YoY to £51.0m (53.7% of total).
Overall, these results confirm the all-important upward trend in orders and contract awards which in turn underpin revenue growth and visibility from operations which span the major theatres of defence operations. These interim results continue the pattern of order-led demand for Cohort’s expertise and services, linking the bigger picture issues that focus on defence to Group prospects.
Our Fair Value remains at 650p/share.
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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