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