Cohort on track to achieve full year guidance

Cohort, an independent technology group, reported a rise in revenue for the first half putting it on track to achieve its full year expectations.

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17:15 03/01/25

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The group’s revenue rose to £50m in the six months ended 31 October 2016 from £49.7m in the first half of 2015. Adjusted operating profit rose 11% to £3.9m from £3.5m in 2015.

Order intake was £63.6m, including an acquired order book of £23.1m, up from £55.7m in 2015. The closing order book was also “strong” at £129.6m, compared to £116m at 30 April 2016.

The company had net funds of £9.9m, down as expected from £19.8m on 30 April 2016 and £11.4m on 31 October 2015.

Interim dividend increased by 16% to 2.20p per share from 1.90p per share in 2015.

Looking forward, the company expects a stronger second half performance with “encouraging” prospects for order intake. A total of £49.5m of the 31 October 2016 order book is expected to be delivered in the second half, underpinning nearly 80% of the consensus forecast revenue for the full year.

The group has also made developments on two acquisitions during the period. An agreement has been reached in principle to acquire a further 23% of EID, a high tech company that designs, manufactures and supplies advanced high performance electronic equipment and systems primarily for the worldwide defence community, from the Portuguese government.

The company expects to acquire the remainder of Marlborough Communications Ltd (MCL), a supplier of advanced electronic and surveillance technology, on or before 31 December 2016.

The share price rose 0.49% to 410.50p at 1241 GMT on Friday.