TIDMCHRT
RNS Number : 8470M
Cohort PLC
26 May 2022
One Waterside Drive
Arlington Business Park
Reading
Berks
RG7 4SW
26 May 2022
COHORT PLC
("Cohort" or "the Group")
Full Year Trading Update
Cohort plc, the independent technology Group, today announces an
unaudited trading update for its financial year ended 30 April
2022.
Summary:
-- Trading performance for the year ended 30 April 2022 is in
line with our revised expectations at the time of the interim
statement, other than on slightly weaker than expected revenue.
-- Net funds at c.GBP11m (30 April 2021: net funds of GBP2.5m;
31 October 2021: net funds of GBP6.1m).
-- Strong order intake of around GBP183m (2021: GBP180.3m).
-- Record closing order book of c.GBP287m (30 April 2021: GBP242.4m).
-- The closing order book underpins nearly GBP113m (69%) of the
market revenue expectations for the year ended 30 April 2023 (2022:
GBP100m, 64%).
FY22 year-end update
Cohort's performance was in line with our revised expectations
for the year, as set out in our interim statement in December 2021.
Compared with 2021, the 2022 performance saw stronger performances
from MCL, SEA, ELAC and MASS, offset by weaker performances from
Chess and EID.
All of the Group businesses are returning to normal working
after the pandemic but continue to experience some impact from
global supply chain issues. The lifting of international travel
restrictions has enabled access to customer premises for acceptance
tests and contract negotiations. The Group has been able to resume
close customer contact through industry events, with a significant
presence at the DSEI exhibition in London in September 2021, and
more recently attendance at events in the Far East and
Australia.
Order intake remains strong. The Group benefited from the ELAC
order for over EUR49m for the Italian Navy (announced July 2021),
continued orders from the UK MOD for MCL's hearing protection and
communication ancillaries (announced April 2022) , significant
export orders for SEA's Torpedo Launcher System (announced February
2022), and a strong first half contribution from MASS. EID
continues to support the Portuguese Army, winning a significant
order for its new Soldier System product (announced November 2021),
although its overall order intake performance was weaker than our
expectations.
As a result of the strong order intake the Group's closing order
book grew to cGBP287m (30 April 2021: GBP242.4m), of which certain
orders extend out to the 2030s. This positive performance has given
us enhanced visibility of future revenue across our businesses,
particularly so at Chess, ELAC, MCL and SEA for the coming year.
Overall, we entered the new financial year with nearly GBP113m
(69%) of market revenue expectations for the year ended 30 April
2023 on order.
In the longer-term, as a result of the conflict in Ukraine, we
expect an increased focus on defence related spending from
governments in the region.
Net funds continue to be strong and were better than expected at
the year end.
Outlook for FY23
Following actions we took at Chess to improve performance, we
are starting to see progress. We saw delays at MASS in the last
financial year in delivering training to international customers
but expect these to be resolved in the second half of the current
financial year. Momentum in SEA's naval division remains strong and
several important opportunities at EID are expected in 2022/23.
The Group continues to see challenges to its supply chain from
higher prices and longer lead times. We continue to monitor and
manage this closely, and we have taken action where appropriate,
including increasing our holding of certain stock items.
Recruitment, particularly in some areas of engineering and IT,
remains a challenge, though we have been able to increase our
headcount through the year by 4% to deliver the larger order book
over the coming years.
Overall, despite the residual challenges of the pandemic and the
uncertain economic conditions, we expect to resume organic growth
in 2022/23 and beyond and are not changing our expectations for the
current financial year.
Notice of FY22 results
It is the Group's current intention to issue its final results
for the year ended 30 April 2022 in late July 2022.
Andrew Thomis, Chief Executive of Cohort, said:
"Cohort's performance was in line with our revised expectations
for the year. Strong order intake, record closing order book and
strong closing net funds provided a good start to the new financial
year, and we expect to resume organic growth in 2022/23 and
beyond."
ENDS
For further information please contact:
Cohort plc 0118 909 0390
Andy Thomis, Chief Executive
Simon Walther, Finance Director
Raquel McGrath, Company Secretary
Investec Bank Plc (NOMAD and Broker) 020 7597 5970
Daniel Adams, Christopher Baird
MHP Communications 020 3128 8570
Reg Hoare, Pete Lambie cohort@mhpc.com
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 offers surveillance, tracking and fire-control systems to
the defence and security markets. A majority stake was acquired by
Cohort plc in December 2018. www.chess-dynamics.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 main operating company sites across the UK, Germany and
Portugal.
.
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END
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