Cohort flags revenue, adjusted operating profit ahead of expectations

(Sharecast News) - Cohort said on Wednesday that full-year revenue and adjusted operating profit were ahead of market expectations after a strong performance from its Communications and Intelligence division and a full-year contribution from EM Solutions.

The AIM-traded independent technology group said unaudited revenue for the year ended 30 April was £303m, up 12% and ahead of consensus expectations of £293.9m.

Adjusted operating profit was about £36m, compared with market expectations of £34.7m.

Net margin improved to 11.9% from 10.2% a year earlier.

Cohort said order intake rose to around £313m from £284m, again exceeding in-year revenue.

The closing order book reached a new record of about £620m, compared with £615m at the end of April 2025, with contracted revenue extending into the mid-2030s.

The order book underpins about £253m of current market revenue expectations for the new financial year, equivalent to around 80% cover, up from £230m a year earlier.

The Communications and Intelligence division grew revenue to £159m from £125.4m and delivered a margin of about 20%, up from 16.8%.

Cohort said the result included a full-year contribution from EM Solutions and was the main driver of the group's improved performance.

The Sensors and Effectors division reported broadly flat revenue of £144m, compared with £147.1m, with margin falling to about 7% from 8.6%.

The group said the lower margin reflected continued prudent trading on ELAC's Italian sonar contract and the sale of SEA's higher-margin transport business in June 2025.

All three businesses in Sensors and Effectors delivered positive trading profit, although Cohort said the division's margin remained below its medium-term target.

The group ended the year with net funds of about £2.9m, compared with £5.3m a year earlier.

Cohort said cash performance was strong in the second half, representing a significant improvement from net debt of £32.5m at the half-year stage, although the year-end position was slightly below expectations after some receipts slipped into the first quarter of the new financial year.

More than £6m was received in early May.

Cohort said order intake was particularly strong at EID, MASS and EM Solutions within Communications and Intelligence, and at Chess and SEA within Sensors and Effectors.

Wins during the year included a €42.3m contract for EID to supply integrated communication systems to the Portuguese Navy.

Chief executive Andrew Thomis said Cohort had performed strongly in 2025/26, exceeding market expectations.

"I'm particularly pleased with the strong maiden full year contribution from EM Solutions," he said.

"The business has made good progress in capturing opportunities for growth and collaboration with other Cohort subsidiaries."

Thomis said the group's strong balance sheet and liquidity gave it a platform to keep investing in the business while considering targeted acquisitions.

"The high level of order cover provides confidence in a strong 2026/27 financial year," he added.

Cohort said it would publish its full-year results on 15 July.

At 0920 BST, shares in Cohort were up 9.01% at 1,345.2p.

Reporting by Josh White for Sharecast.com.

See latest RNS on Investegate

Cohort