Cohort flags even better first half after last year's record results

Cohort reported strong recent trading in an update on Tuesday, after its record full-year performance for 2024 saw strong growth in revenue, adjusted operating profit, and order intake, supported by a robust cash position.

The AIM-traded company, which was holding its annual general meeting, said it ended the year ended 30 April with a record order book valued at £518.7m, extending into 2037 and providing strong revenue coverage for the new financial year.

It said that first-half trading performance was expected to be significantly ahead of the same period last year, driven by the strong order book, particularly in the sensors and effectors segment.

The group also anticipated an improved net margin for the first half, with the usual expectation of stronger second-half performance for the full year.

Since the start of the 2025 financial year, Cohort had secured new contracts worth over £120m, bringing its order book to over £575m as of 20 September, providing about 90% coverage of consensus revenue expectations for the full year.

The company raised its revenue and profit forecasts slightly above previous expectations, reflecting confidence in continued demand from both domestic and export markets.

Looking ahead, Cohort said it was planning to invest in capital expenditure and expand working capital to support its record order book, which was expected to result in slightly lower net funds by the end of 2025 compared to the £23.1m reported at the end of 2024.

The group said it remained committed to its strategy of growth through both organic means and targeted acquisitions, driven by increased global defence spending amid current geopolitical tensions.

At 1153 BST, shares in Cohort were up 1.67% at 845.87p.

Reporting by Josh White for Sharecast.com.