TIDMCHRT
RNS Number : 8023Z
Cohort PLC
26 May 2021
26 May 2021
COHORT PLC
("Cohort" or "the Group")
Trading Update
Cohort plc, the independent technology Group, today announces an
unaudited trading update for its financial year ended 30 April 2021
and outlook for the current financial year.
Summary:
-- Trading performance for the year ended 30 April 2021 is in line with our expectations
-- Net funds stronger than expected at c.GBP2m (30 April 2020:
net debt of GBP4.7m; 31 October 2020: net debt of GBP6.1m)
-- Record order intake of around GBP210m (2020: GBP124.4m)
-- Closing order book of c.GBP240m (30 April 2020: GBP183.3m)
-- The closing order book underpins GBP100m (63%) of the market
revenue expectations for the year ended 30 April 2022 (2020:
GBP83m, 60%)
-- Acquisition of ELAC completed in the year represented a
significant expansion, adding a profitable and growing sixth
stand-alone business to the Cohort Group
-- While the Board's expectations for revenue growth for the
current financial year are unchanged, given the expected mix of
revenues and resulting margin impact, profit growth is expected to
slow.
FY21 year-end update
Cohort's performance was in line with our expectations for the
year. This was despite lockdown restrictions in various countries
affecting our ability to carry out work on customer premises and
customers' ability to witness acceptance tests and to place new
orders .
During the year the Group completed the acquisition of ELAC
SONAR GmbH ('ELAC'), furthering our expansion in defence products
and export markets, particularly the naval sector; its initial
five-month contribution and integration were in line with our
expectations.
Order intake (excluding the positive effect of acquiring ELAC)
was stronger than the prior year, benefiting from a GBP25m contract
awarded in March 2021 to SEA for the management and upgrade of
in-service sonar equipment for the UK Ministry of Defence, and
significant contract awards at Chess, MASS and MCL.
As a result of the record order intake, the Group's closing
order book grew substantially to c.GBP240m (2020: GBP183.3m), of
which certain orders extend out to 2031. The strong growth in the
Group's order book has given us enhanced visibility across our
businesses. This is particularly so at Chess, ELAC, MASS and SEA;
however, the Group has seen some potential orders delayed over the
course of the year, notably at EID, in part arising from the impact
of the COVID-19 pandemic. Some of these orders are now expected to
be secured in 2022 and 2023.
Outlook for FY22
Despite the Group's strong closing order book, delays in the
placing of certain orders with EID, representing around one third
of EID's revenue, is likely to negatively affect EID's trading
performance. While the overall performance of the Group's other
businesses means the Group's revenue expectations are unchanged,
leading to good revenue growth, the mix of revenues is expected to
see a reduction in the Group's overall margin and accordingly a
lower rate of profit growth.
Notice of FY21 results
It is the Group's current intention to issue its final results
for the year ended 30 April 2021 in late July 2021.
Andrew Thomis, Chief Executive of Cohort, said:
"Cohort had a strong year, performing in line with our
expectations despite the challenges posed by the pandemic. Our
financial position ended the year stronger than expected with
positive net funds. Together with our banking facilities, this
provides us with the flexibility to continue to invest in the
business and consider acquisitions. Notwithstanding the
disappointment of delays to certain EID orders, we continued to
strengthen our order book with further contract wins, and we see
good prospects for further significant new orders."
ENDS
For further information, please contact:
Cohort plc 0118 909 0390
Andrew Thomis, Chief Executive
Simon Walther, Finance Director
Raquel McGrath, Company Secretary
Investec Bank plc 020 7597 5970
Daniel Adams / Christopher
Baird
MHP Communications 020 3128 8100
Reg Hoare / Pete Lambie /
Isabella Grace
NOTES TO EDITORS
Cohort plc ( www.cohortplc.com ) is the parent company of six
innovative, agile and responsive businesses based in the UK,
Germany 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 surveillance, tracking and
fire-control 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
naval and military customers. Cohort acquired a majority stake in
June 2016. www.eid.pt
ELAC SONAR supplies advanced sonar systems and underwater
communications to global customers in the naval marketplace.
Acquired by Cohort in December 2020. www.elac-sonar.de
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 and supports technology-based products for the
defence and transport markets alongside specialist research and
training services. 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 1,000 core staff there and at
its other operating company sites across the UK, Germany and
Portugal.
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END
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