Cohort's full-year profits dip, co-chairman steps down

Cohort reported lower full-year profits despite higher revenue, as acquisition-related costs took their toll.

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Pre-tax profit for the 12 months to 30 April fell 12% to £5.9m, from £6.7m over the same period a year earlier. Earnings per share also slid to 13.7p, from 14.4p.

The decline follows expenditures of £17m on the acquisition of MCL and J+S, investments that Cohort said were already paying off with a strong order book in the current financial year.

Adjusted earnings were up to 20p from 18.7p as revenue reached a record high, swelling 40% from £71.6m to £100m. The technology group attributed this to a particularly strong performance from its submarine communications division, as well as a higher number of exports.

The board recommended a final dividend of 3.4p per share, making a total dividend of 5p per ordinary share, an increase of 19% from 2014's 4.2p. This will payable on 30 September 2015, subject to approval at the annual general meeting (AGM) a week earlier.

"Cohort once again improved its performance in the year, achieving record revenue and adjusted operating profit," said chairman Nick Prest.

"The Board considers that Cohort's order book and near-term prospects provide a good base for future progress," he added.

In separate news, Cohort announced that co-chairman Stanley Carter will step down from his role on 22 September, but will remain on the board as a non-executive director.

Elsewhere, Jeff Perrin will be joining the board as a non-executive director on 1 July and will succeed Robert Walmsley as chairman of the audit committee after the AGM.

Cohort was trading 4.4% higher at 274p as of 9:00 BST.