25th Jun 2015 08:58
LONDON (Alliance News) - Technology company Cohort PLC on Thursday said its pretax profit fell slightly in its 2015 financial year as higher costs offset booming revenue, but it said it is confident on its outlook as its order book swelled over the course of the year.
Cohort's pretax profit for the year to the end of April was GBP5.9 million, down from GBP6.7 million a year earlier. Revenue boomed for the company in the year, up to GBP99.9 million from GBP71.6 million, but though a lower cost of sales meant its gross margin was strong, higher administrative expenses offset this and meant its operating profit was lower in the year. It also was hit by a GBP3.6 million charge on the amortisation of intangible assets.
Revenue was pushed higher by stronger performances in its SCS defence consultancy arm and by a good performance in its MASS defence and technology business, plus a contribution from Marlborough Communications, which it acquired in July. Organic revenue growth for the year was 22%.
Cohort's order book also surged higher over the course of the year, closing at GBP134 million, compared to GBP82 million at the end of its 2014 financial year. Total order intake for the year was GBP114.3 million, up from GBP68.5 million.
The company said it would pay a final dividend of 3.4 pence per share, up from 2.8 pence a year earlier and pushing its total dividend for the year up to 5 pence per share from 4.2 pence.
The group said its order book provides a good underpinning for the coming year and said its focus will be on growing its order book further, both organically and via acquisitions.
"Cohort once again improved its performance in the year, achieving record revenue, adjusted operating profit and closing cash. The underlying businesses of MASS, SCS and SEA all recorded growth in revenue and adjusted operating profit, and the result also benefited from the two acquisitions made in the year," said Cohort Chairman Nick Prest.
"The management emphasis is now on driving further growth both organically and by acquisition, supported by a continuing strong funding position. The board considers that Cohort's order book and near-term prospects provide a good base for future progress," Prest added.
In a separate statement on Thursday, Cohort said that Stanley Carter is to relinquish his role as the company's co-chairman, though he will remain on the board as a non-executive director.
Cohort shares were up 3.6% to 274.05 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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