14th Dec 2015 09:19
LONDON (Alliance News) - Cohort PLC on Monday said it expects to see a stronger second half performance, as it reported a fall in pretax profit for its first half.
For the half year to end-October the defence and surveillance technology company reported a pretax profit of GBP85,000, down from GBP1.3 million a year before, as a rise in revenue to GBP49.7 million from GBP37.6 million was offset by higher administrative costs and a GBP3.2 million amortisation of intangible assets.
Cohort proposed an interim dividend of 1.90 pence per share, up from 1.60p a year before.
Cohort agreed to buy Portuguese defence firm Empresa de Investigação e Desenvolvimento de Electrónica SA, or EID, for GBP16.0 million earlier this year. The deal is conditional on Portuguese government approval. However, as a result of the political situation in Portugal following its October general election, Cohort warned this could "take some time".
As a result it has agreed to buy the 57% of EID held by the private sector, which will give the company management control of the business, for EUR10.8 million. This is expected to be completed by no later than the end of January 2016. When approval is given, Cohort will acquire the Portuguese government's stake, provided this is no later than the end of June 2016.
Cohort cited a closing order book of GBP140 million and recent order wins as underpinning its confidence for the second half.
"Overall, Cohort's order book and pipeline, market positions and strong funding position continue to provide confidence for its future prospects," said Chairman Nick Prest in a statement.
Shares in Cohort were flat at 410.00 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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