Cohort Regulatory News (CHRT)

22 September 2015

COHORT PLC ("Cohort")

AGM Statement & First Quarter Update

Cohort, the independent technology group, is today holding its Annual General Meeting. The Chairman, Nick Prest, will make the following remarks to the meeting:

"Cohort again improved its performance last year, achieving record revenue, adjusted operating profit and closing net funds. SCS, SEA and MASS all improved their performance, and there were first time contributions from the acquisitions of MCL and J+S. At the year end, net funds were £19.7m, after expenditure of £17m on acquisitions. The Group's order book remained strong at £134m, with around 66% of externally forecast 2015/16 revenue underpinned by customer orders, a slightly higher percentage compared to the previous year.

"In line with our stated strategy, on 5 August 2015 we announced that Cohort has agreed to acquire Empresa de Investigação e Desenvolvimento de Electrónica, S.A., (EID), a Portugal based supplier of advanced electronics, communications and command and control products and systems for the global defence market. This acquisition provides the Group with the ability to offer a wider range of new and complementary capabilities to defence and security customers worldwide and is expected to be earnings enhancing in the current financial year. The acquisition is expected to complete shortly.

"Our order book and pipeline remains robust; EID will add substantially to it having reported a €35.2m order book as at 31 March 2015, and on 13 August 2015 we announced a £11.2m contract awarded to MCL by the Ministry of Defence for hearing protection. The Group's order book stood at £136m as at 31 August, excluding EID.

"Cohort is close to completing its new debt facility announced at the time of the acquisition of EID and to be put in place as part of the deal funding structure. This has a total value of up to £25m with a syndicate comprising RBS, Barclays and Lloyds and comprises three flexible elements: a term loan, an overdraft (replacing the Group's existing facility with RBS) and trade finance. Net funds as at 31 August 2015 stood at £12.4m prior to payment of the net cash consideration of €16m in respect of EID. The reduction in the Group's cash position since year end is a result of the expected outflow of working capital following the favourable timing signalled at the year end.

"Our emphasis continues to be on driving further growth both organically and by acquisition, supported by a continuing strong funding position. Overall, Cohort's order book and near-term prospects provide a good base for future progress".

Ends

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NOTES TO EDITORS

Cohort plc (www.cohortplc.com) is the parent company for four innovative, agile and responsive businesses working primarily for defence, wider government and industry clients. 

· SCS (www.scs-ltd.co.uk) - a defence consultancy, combining technical expertise with armed forces experience and domain knowledge. Owned by Cohort since flotation in March 2006. 

· MASS (www.mass.co.uk) - a specialist defence and technology business, focused mainly on electronic warfare, information systems and cyber security. Acquired by Cohort in August 2006.

· SEA (www.sea.co.uk) - an advanced electronic systems and software house operating in the defence, transport and offshore energy markets. Acquired by Cohort in October 2007. 

· MCL (www.marlboroughcomms.com) - an expert in sourcing, design and integration of communications and surveillance technology, as well as support and training for UK end users including the MOD and other government agencies. MCL has been part of the Group since July 2014.

Cohort (AIM: CHRT) was admitted to London's Alternative Investment Market in March 2006. It has its headquarters in Berkshire and employs in total around 650 core staff there and at its other operating company sites in Bristol, Cambridgeshire, Devon, Lincolnshire, Somerset, Surrey and Scotland.