Cohort PLC – Half Year Results

Cohort PLC – Half Year Results

Cohort plc, the independent technology group, today announces its half year results for the six months ended 31 October 2019

 

Operational highlights

•     Revenue up to £60.2m (2018: £39.5m).  On a like-for-like basis, revenues grew by 17%.

•     Adjusted* operating profit up significantly to £4.0m (2018: £1.0m).  On a like-for-like basis, adjusted operating profit grew by 120%.

•     Adjusted* earnings per share up to 6.94 pence (2018: 1.99 pence).

•     Order intake up to £77.2m (2018: £45.6m).

•     Closing order book of £206.7m (30 April 2019: £190.9m).

•     Net debt of £6.8m (31 October 2018: net funds £4.7m; 30 April 2019: net debt £6.4m).

•     Interim dividend increased by 12% to 3.20 pence per share (2018: 2.85 pence per share).

•     Initial first half contribution from Chess and an improvement in the remainder of the Group, particularly at MASS.

•     Agreement to acquire Wärtsilä ELAC Nautik GmbH for a headline price of €11.25m announced today.  Expected to complete before 30 June 2020.

Looking forward

•     Second half weighting expected again this year.

•     The half year order book of £206.7m underpins over £60m of revenue deliverable in the second half, which, added to revenue delivered to date, is 83% (2018: 71%) of consensus forecast revenue for the full year.

•     Prospects for more orders in the second half to further underpin this year and next year are good.

•     Full year performance expected to be in line with market expectations.

•     The acquisition of ELAC represents a significant strategic step, furthering our expansion in defence products and export markets, particularly the naval sector.

Nick Prest, Chairman, commenting on the results, said:

“Cohort delivered an improved result compared to the same period last year, due to a combination of an initial first half contribution from Chess and an improvement in the underlying Group, particularly at MASS.  The order book of nearly £207m underpins a significant proportion of the second half revenue, and, as in recent years, we expect a stronger second half.  The Board expects Cohort’s performance in 2019/20 will be in line with market expectations.”

“The acquisition of ELAC will represent a significant expansion, adding a profitable and growing sixth stand-alone business to Cohort’s portfolio.  It furthers our strategy of expanding in defence products and export markets.”

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