12th Dec 2018 09:57
LONDON (Alliance News) - Cohort PLC hiked its interim dividend Wednesday despite profit and revenue struggling amid order and delivery delays, meanwhile order books grew strongly.
For the six months ended October, the aerospace, defence and engineering firm sank to a GBP2.0 million pretax loss from a GBP407,000 profit the year prior. This was after revenue fell 10% to GBP39.5 million from GBP44.0 million the year before.
"Cohort's result in the first half was lower than in the first half of the previous year, due to a combination of delivery slippage, some at customer request, and order delays," Cohort Chairman Nick Prest said.
"We previously referred to a number of key order opportunities which could have a major impact on our prospects for financial 2019 and beyond," Prest added. "These orders alone will total over GBP100 million, on top of the GBP45.6 million of orders won in the first half, and we expect financial 2019 to be a record year for order intake for Cohort."
Cohort said its order book stood at GBP135.4 million as of the end of November, compared to GBP102.5 million at the end of April.
Cohort explained this provided the firm with a "strong underpinning" for the remainder of financial 2019. "We therefore expect, as seen in the last few years, a much stronger performance in the second half," Prest said.
Cohort proposed a 2.85 pence per share interim dividend, up 12% from 2.55p the year prior.
"Overall," Prest continued, "allowing for the fact that we have proportionately more to do in the second half, the board's considered view is that Cohort's overall performance in financial 2019, before taking account of the acquisition of Chess, will be similar to financial 2018 with the elements in place to deliver further progress in financial 2020."
Earlier on Wednesday, Cohort announced it had completed its GBP41.9 million acquisition of a 82% stake in Chess Technologies Ltd.
"The acquisition of Chess represents a significant expansion, adding a profitable and growing fifth standalone business to Cohort's portfolio," Prest added. "It furthers our strategy of expanding in defence products and export markets. We expect it to be earnings enhancing in the current year."
Shares in Cohort were 1.2% lower at 410.00 pence on Wednesday.
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