The Cohort Group comprises six military, electronics and intelligence development operations spread across the UK, Germany, and Portugal. The six are: Chess offering electro-optical tracking and surveillance systems for naval and land defence and security customers; EID designs and makes advanced communications systems for naval and land defence customers; ELAC SONAR supplies advanced sonar systems and underwater communications to global customers in the naval marketplace; MASS provides advanced digital services serving the defence and security markets MCL designs, sources and supports advanced electronic and surveillance technology for the UK MOD and other government agencies; SEA delivers and supports technology-based products for the defence and transport markets alongside specialist research and training services.

24 Sep 2024

AGM gives another confident update

In a statement to accompany today’s AGM, Cohort reported that, propelled by trading and order intake, notably in the Sensors & Effectors division, H1 25 is expected to be significantly ahead year-on-year, with net margin improvement. The Group indicates that FY25 revenue and (adj.) operating profit are now expected to be slightly ahead of management prior expectations.

The year-end record closing order book was £518.7m, with visibility out to 2037 and an estimated 90% of FY25 consensusestimated revenue covered. Post FY24 results the Group has continued to add contract wins worth over £120m taking the total to £575m by 20 September.

We have revised our FY25 revenue estimate up by 4.5%, from £220m to £230m, also raising (adj.) EBIT by 2.2% to £24.6m (prior £24.0m). Cohort currently trades on 9.6x FY26E (adj.) EV/EBITDA, 17.6x PE compared to the market cap weighted average of peers on respective multiples of 12.1x and 21.1x

At this stage, our Fair Value remains 910p / share

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