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Cohort is so cheap now, very attractive to buy at this price.
What's driving the sudden SP drop since mid March?
went through in one hit today
finally the transactions come through
Absolutely no transactions and the MMs have pushed the SP down 215 to 203 this morning already. Talk about a tree shake, and no shares pushed out yet
While cash on deposit is not earning very much for Cohort at the moment, it represents the potential to create significant value for shareholders and the market does not seem to be pricing in at the moment. Meanwhile, the MoD has billions of pounds to spend and good incumbent suppliers like Cohort are rarely replaced. Three years of uninterrupted growth in both underlying pre-tax profit and dividends looks certain to continue, too. So, with 47p per share of cash forecast for the year end, a property portfolio worth another £7m, or 17p per share, and trading at only a small premium to book value
Even if Cohort does nothing, the underlying business is in good health. Working for government and defence primes like BAE Systems, Thales and Raytheon means Cohort has no bad debts. And management reckons UK defence cuts are over, which is a relief, given the MoD generated almost three-quarters of sales last year. Roughly a third of the MoD’s £35bn annual budget is earmarked for procurement, and Cohort is well-placed. The group has recently announced a number of wins such as £4.1m to demonstrate the airworthiness of F-35 Joint Strike Fighters and £11m for external communications gear bound for the latest Astute-class nuclear-powered submarines. There are also inroads being made into non-defence markets such as traffic monitoring and secure IT systems for schools. All this helped the order book grow by £6m in the first quarter to £102m.
Most defence contractors have struggled to plug the gap left by US military budgets, but not Cohort (CHRT). The small defence systems and training company works mostly for the Ministry of Defence (MoD) where budgets have stabilised, and spending is shifting from tanks and guns to intelligence assets, submarines and combat aircraft - all areas where the company excels. But despite its strong prospects and a substantial cash pile, the shares trade at a sharp discount to the sector. Despite Cohort's encouraging trading outlook, its diminutive size could arguably justify the fact that its PE ratio of 11.2 times, based on rolling next-twelve-months (NTM) consensus forecasts, represents a 15 per cent discount to the sector average. However, that's before the company's cash is taken into account. Broker Investec estimates that by the end of next April net cash should have risen to £19.1m - equivalent to more than a quarter of the current market capitalisation - before reaching £23.1m the following year. Based on the broker's forecasts and adjusting for interest earned on cash deposits, this implies a cash-adjusted NTM PE ratio for Cohort of just 8.1. That represents a near 40 per cent discount to its peers, which on average have net borrowings equivalent to 12 per cent of their market capitalisations. With cash on deposit earning so little at the moment, it is perhaps understandable that the market has been paying little attention to this aspect of Cohort's business. However, acquisitions could bring the attractions of Cohorts strong balance sheet to the wider attention of the market. Cohort spoke to possible targets at last month’s arms fair in Docklands, but it won’t overpay and is under no pressure from major institutional shareholders, either. However, Investec "conservatively" estimates that acquisitions that used up the cash pile could boost earnings by between 15 and 20 per cent. That implies an eye-catching forward PE ratio of about 9 for the year to April 2015, which would make the current valuation anomaly stark.
Back towards £2....
movements here today?........
Cohort plc: strong order book, growth in profits and dividends Andrew Thomis, CEO of Cohort plc (LON:CHRT) tells Proactiveinvestors that it aims to continue its strategy for growth http://tinyurl.com/nomzztz
dunno really.lol..ime off for a conservative 200p finish.... gl though if your off for it....
Any thoughts ?
http://www.investegate.co.uk/cohort-plc--chrt-/rns/sea-awarded--11m-contract/201308200700130415M/ contract........
This is a discussion board to express opinion, I don't see the point of pasting RNS data word for word onto a discussion boards - links suffice!
Nick Prest, Chairman of Cohort, said: "Cohort has continued to make progress although the tightness in the UK defence market has persisted. First half trading performance was ahead of last year despite reduced revenue. "There are some good opportunities ahead both in defence and non-defence markets, and our order book remains strong. We do see uncertainties ahead, particularly at SCS. I expect that the difficult market conditions they are facing will improve when the MOD's re-organisation initiatives are complete, though this could take some time." "On balance we believe that Cohort will continue to make progress in the current financial year and beyond."
AIM-listed independent technology company Cohort posted modest growth in operating profit for the six months to October 31st, according to its interim results published on Thursday. The group, which has a market capitalisation of £49.89m and operates through three subsidiaries; MASS, SCS and SEA, saw growth in adjusted operating profit, earnings per share and its interim dividend. Adjusted operating profit increased by 9% to £3.3m, up from £3m in the corresponding period in 2011. Adjusted earnings per share increased by 25% to 6.97p and the interim dividend increased by 20% to 1.20p per share. Revenue fell to £33.8m from £37.4m in the corresponding period last year and the group had net cash of £12.1m following dividends and purchase of own shares of £1.2m compared to £14.1m on April 30th 2012. Some £27.3m orders are deliverable in the second half underpinning revenue expectations, according to the company's results statement. The group added that prospects for further orders in the second half across the group are encouraging.
Thanks mulledwine - CEO has also talked through the results webcast is on their website - http://www.cohortplc.com/investor_relations/web_casts/
Outlook Cohort has continued to make progress despite continuing tightness in the UK defence market. First half trading performance was ahead of last year despite reduced revenue. There are some good opportunities both in defence and non-defence markets, and our order book remains strong. We do see uncertainties ahead, particularly at SCS. I expect that the difficult market conditions they are facing will improve when the MOD's re-organisation initiatives are complete, though this could take some time. On balance we believe that Cohort will continue to make progress in the current financial year and beyond.
Commenting on the results, Nick Prest, Chairman of Cohort, said: "Cohort has continued to make progress although the tightness in the UK defence market has persisted. First half trading performance was ahead of last year despite reduced revenue." "There are some good opportunities ahead both in defence and non-defence markets, and our order book remains strong. We do see uncertainties ahead, particularly at SCS. I expect that the difficult market conditions they are facing will improve when the MOD's re-organisation initiatives are complete, though this could take some time." "On balance we believe that Cohort will continue to make progress in the current financial year and beyond."
UNAUDITED RESULTS FOR THE SIX MONTHS ENDED 31 OCTOBER 2012 Cohort plc, the independent technology group, today announces its unaudited results for the six months ended 31 October 2012. Highlights include: • Adjusted* operating profit increased by 9% to £3.3m (2011: £3.0m). • Operating profit increased by 126% to £4.3m (2011: £1.9m). • Adjusted* earnings per share increased by 25% to 6.97p (2011: 5.60p). • Earnings per share increased by 170% to 9.35p (2011: 3.46p). • Revenue £33.8m (2011: £37.4m). • Order intake of £29.9m in the first half. • Healthy closing order book of £103.2m (30 April 2012: £107.1m). • Net cash of £12.1m (30 April 2012: £14.1m) following dividends and purchase of own shares of £1.2m. • Interim dividend increased by 20% to 1.20p per share (2011: 1.00p per share). Looking forward: • £27.3m of orders are deliverable in the second half - strongly underpinning revenue expectations. • Prospects for further orders in the second half across the Group are encouraging.
Good intro video from with CEO, Andrew Thomas - worth a look http://www.brrmedia.co.uk/event/106630/andrew-thomis-chief-executive
Time to sell before mid year gloom
Technology group Cohort said it was looking to build on record profits last year after a strong first quarter. In a speech to the company's annual general meeting, Chairman Nick Prest said a combination of a good order book, strong net funds and businesses with operational momentum provided a solid foundation for the current financial year. "Cohort's trading and prospects at this early stage of the year are consistent with making further progress in 2012/13," he said. Although the UK defence market remains tight the business had a good pipeline of new opportunities with the Ministry of Defence and in export markets, Prest said, At the end of July the group order book stood at £111m, up from 107.1m at the end of April. The company has been spending more recently to support its projects but said it had a cash balance in excess of £12m as at 10 September, down from £14.1m at the end of April. Prest added that the cash meant it would consider acquisitions if suitable opportunities arose, while continuing to focus on organic growth and operational improvements.