Cohort PLC AGM Statement & First Quarter Update (9637Y)
September 15 2020 - 2:00AM
UK Regulatory
TIDMCHRT
RNS Number : 9637Y
Cohort PLC
15 September 2020
One Waterside Drive
Arlington Business Park
Reading
Berks
RG7 4SW
15 September 2020
COHORT PLC
("Cohort" or "the Group")
AGM STATEMENT & FIRST QUARTER UPDATE
Cohort, the independent technology group, is today holding its
Annual General Meeting (AGM) and accordingly issues the following
AGM Statement and first quarter update:
Cohort continued to make good progress in its financial year
ended 30 April 2020, achieving a record adjusted operating profit
despite the impact of COVID-19 restrictions in the final two
months. A full year contribution from Chess, a record performance
at MASS and improvement at EID offset weaker trading at MCL and
SEA. Following the lifting of lockdown, we have successfully
completed a phased process of returning colleagues safely to work
and the majority are now back on site on a part time or regular
basis.
As expected, the restrictions on international travel continue
to constrain our ability to develop new export opportunities, which
generated over 30% of Cohort's revenues in 2019/20. Nevertheless,
the Group entered the 2020/21 financial year with a substantial
long-term order book and a strong pipeline of order prospects, and
we have continued to win new business since we reported the 2020
final results in July. At 31 August 2020, the Group's order book
stood at GBP210.0m, compared to GBP183.3m at our 30 April 2020
financial year end. This underpins approximately 83% (or GBP113m)
of the new financial year's consensus forecast revenue, compared to
76% at the same time last year.
Cohort remains soundly financed: net debt at 31 August 2020
stood at GBP1.4m, compared to GBP4.7m at 30 April 2020. The Group's
cash and readily available credit was just over GBP38m at 31 August
2020 providing significant financing headroom for current
anticipated commitments, including the completion of the
transaction to acquire Wärtsilä ELAC Nautik ("ELAC") announced on
12 December 2019. The acquisition of ELAC remains subject to
approval by the German Federal Government. This process has been
delayed by COVID-19 and other factors, but a meeting is now planned
for later this month and we expect to have a clearer idea of the
completion timetable after that.
We continue to expect that our trading performance for 2020/21
financial year will be in line with that achieved in the year ended
30 April 2020, as indicated at the time of the final results
announcement in July. We expect net debt to remain flat for the
year, after taking account of the acquisition of ELAC.
In the longer term, the Group continues to expect to return to
growth, as it recovers the orders and revenue delayed due to
COVID-19, whilst benefiting from the acquisition of ELAC.
Ends
For further information, please contact:
Cohort plc 0118 909 0390
Andrew Thomis, Chief Executive
Simon Walther, Finance Director
and Company Secretary
Investec Bank plc 020 7597 5970
Daniel Adams / Chris Baird
MHP Communications 020 3128 8100
Reg Hoare / Pete Lambie
NOTES TO EDITORS
Cohort plc ( www.cohortplc.com ) is the parent company of five
innovative, agile and responsive businesses based in the UK and
Portugal, providing a wide range of services and products for
domestic and export customers in defence and related markets.
Chess Technologies, through its operating businesses Chess
Dynamics and Vision4ce, offers electro-optical and
electro-mechanical systems to the defence and security markets. It
was acquired by Cohort plc in December 2018. www.chess-dynamics.com
& www.vision4ce.com
EID designs and manufactures advanced communications systems for
the defence and security markets. Cohort
acquired a majority stake in June 2016. www.eid.pt
MASS is a specialist data technology company serving the defence
and security markets, focused on electronic warfare, digital
services and training support. Acquired by Cohort in August 2006.
www.mass.co.uk
MCL designs, sources and supports advanced electronic and
surveillance technology for UK end users including the MOD and
other government agencies. MCL has been part of the Group since
July 2014. www.marlboroughcomms.com
SEA delivers products and services into the defence, transport
and offshore energy markets alongside performing specialist
research, training and product support. Acquired by Cohort in
October 2007. www.sea.co.uk
Cohort (AIM: CHRT) was admitted to London's Alternative
Investment Market in March 2006. It has headquarters in Reading,
Berkshire and employs in total around 900 core staff there and at
its other operating company sites across the UK and in
Portugal.
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