Cohort reports 40% jump in half year operating profit

Defence-focused technology group Cohort on Monday reported a 40% jump in half year operating profit to £35m as revenue was boosted by a strong performance at its SEA and MASS divisions.

Revenue in the six months to 31 October rose 32% to £49.7m, including £2.4m from Mass (2014: £1.9m), and £1.8m from SEA of £1.8m (2014: £1.1m).

Adjusted earnings per share for increased 29% to 7.11p. Contract wins during the period included a £11.2m deal with the Ministry of Defence (MoD) for hearing protection products, a £9.7m contract with the MoD for training and exercise support and a £3m deal for electronic warfare operational support services to an undisclosed overseas customer.

"The closing order book of £140m (30 April 2015; £134m) and recent order wins provide a good underpinning to the second half of the year. We expect, as seen in the last few years, a much stronger performance than in the first half,” said chairman Nick Prest.

"The Strategic Defence and Security Review recently concluded in the UK gives support to existing programmes, such as submarines, in which Cohort is engaged and foresees greater expenditure in areas such as Cyber and Special Forces in respect of which Cohort has strong and relevant capabilities."

The company also expected to complete the initial stage of the acquisition of EID, a Portugal-based supplier of advanced electronics, communications and command and control products for the defence market, by early 2016. The deal EID is projected to deliver a “small but positive contribution to Cohort's 2015/16 financial year with more significant contributions thereafter”, Prest said.

The group raised it interim dividend by 19% to 1.90p.

Shares were up 0.49% to 412p at 1554 GMT.