11th Dec 2024 09:57
(Alliance News) - Cohort PLC on Wednesday reported record half-year results and hiked its interim dividend, as geopolitical instability drove increased defence spending.
Shares in Cohort rose 6.1% to 1,081.90 pence in London on Wednesday morning.
The Reading, England-based technology firm, which is the parent company of businesses operating in the defence sector, said it enjoyed a "much stronger performance in the first half".
Pretax profit in the six months to October 31 more than doubled to GBP8.5 million from GBP3.7 million in the prior year.
Revenue also improved by 25% to GBP118.2 million from GBP94.3 million. It added that revenue and adjusted operating profit topped "recent guidance".
The company increased its interim dividend by 12%, to 5.25p per share from 4.70p in 2023.
Chair Nick Prest said the strong performance was being driven by heightened tensions in the Asia-Pacific region, and conflict in Europe and the Middle East, which have supported increased spending on defence and security.
Cohort said its GBP541.1 million order book includes GBP120 million of revenue which is deliverable in the second half, which covers over 99% of consensus forecast revenue for the full financial year. This is up from an order book of GBP518.7 million on April 30.
The company said it anticipates a stronger performance in the second half, with increased delivery in the Sensors & Effectors division driving full-year growth in profit performance.
It also said it expects the acquisition of EM Solutions in Australia to complete shortly, and materially enhance adjusted earnings per share from financial 2026 onwards.
Chair Nick Prest said: "The continued expansion of the order book is a strong indicator that we are offering competitive products in a growing market. On-order revenue is now deliverable out to the mid-2030s.
"The pipeline of order opportunities for the remainder of the year also looks strong...Overall, we continue to see a positive outlook for organic growth in the years ahead."
By Michael Hennessey, Alliance News reporter
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