Cohort’s order book hits record amid booming defence spending
AIM-listed defence group Cohort has reported strong half-year results, attributing its performance to conflicts in Europe and the Middle East and “heightened international tensions” in the Asia-Pacific region.
The group, which owns six defence companies including Chess, EID, and SEA, recorded a 25 per cent year-on-year increase in revenue for the six months to 31 October, reaching £118.2m.
According to the company, this growth was primarily driven by higher UK Ministry of Defence (MOD) sales across divisions, “particularly within the communications and intelligence division.”
Cohort also announced a record-breaking closing order book of £541.1m, up from £518.7m on 30 April.
The company said that over £120m of this revenue would be delivered in the second half of the financial year, with the duration of the order book extending into the mid-2030s.
Adjusted operating profit surged 69 per cent to £10.1m, leading to an adjusted earnings of 20 pence per share, up from 10.36 pence in 2023.
Net funds stood at £37.9m as of 31 October, significantly exceeding the £13.3m reported at the same point last year.
Cohort credited this improvement to “working capital flows that included strong customer advances.”
Chair Nick Prest remained optimistic, stating: “In line with previous experience, we anticipate a stronger performance in the second half and remain on track to achieve our expectations for the full year.”
Prest added that “heightened tensions” globally are driving increased defence and security spending, with the sector unlikely to see a slowdown in the near future.
Cohort’s results reflect a wider surge in global defence spending, with industry giants like BAE Systems and Lockheed Martin similarly benefiting from increased geopolitical instability.
Cohort has secured approximately £120m worth of contracts this year and has seen its shares soar by 94.54 per cent in 2024.
The company’s performance underscores the sustained demand for defence capabilities amid a rapidly evolving security landscape.
Last month, the company announced its largest acquisition ever, the £75m deal for the Australia-based EM Solutions, a leading developer of high-end SATCOM terminals for global naval and defence customers.