Market Cap£202m

Last Close 490.5p

Cohort is an AIM-listed defence and security company operating across six divisions: MASS (32% of H122 sales), SEA (23%), MCL (13%), the 80%-owned Portuguese business EID (4%), the 81%-owned Chess Technologies based in the UK (10%), and ELAC SONAR (18%).

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Investment summary

Cohort’s defence and security orientation has proven resilient during the pandemic although in FY22 it faced challenges at EID and Chess. MCL, SEA, MASS and ELAC all progressed although MASS saw some continued delays in H222. FY22 revenues are lower than management expected but earnings are in line. Net funds of £11m are better than expected and strong order intake of £183m left the FY23 backlog at a closing record of £287m. £113m is deliverable in FY23 covering 64% of sales expectations, with guidance unchanged despite inflationary pressures and marking a return to organic growth.

Y/E Apr
Revenue (£m)
PBT (£m)
EPS (fd) (p)
P/E (x)
P/CF (x)
2020A 131.1 20.9 17.5 36.7 13.4 15.4
2021A 143.3 22.1 17.9 33.3 14.7 9.5
2022E 138.9 18.3 14.6 29.8 16.5 9.6
2023E 164.2 21.9 17.8 34.4 14.3 29.7
Industry outlook

Cohort is heavily influenced by activities in defence and security (94% of FY21 sales). These markets require highly differentiated technologies and services with high barriers to entry based on customer relationships, regulation and high-level security clearances. Defence is generally resilient in periods of significant economic disruption. The last UK Strategic Defence and Security Review focused on some of Cohort’s key strengths and was followed by a 10% increase in spending plans until 2025, with the war in Ukraine likely to focus more resources on global security.

Last updated on 01/07/2022
Content on Cohort
Cohort – Set to resume growth in FY23
Industrials | research Update | 27 May 2022
Cohort – Stronger H222 underpinned by record backlog
Industrials | research Update | 16 December 2021
Cohort – FY21 delivers growth despite pandemic
Industrials | research Update | 28 July 2021
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Share price graph
Balance sheet
Forecast net cash (£m) 10.6
Forecast gearing ratio (%) N/A
Price performance
Actual (6.4) 7.8 (11.1)
Relative* (1.1) 14.9 (8.4)
52-week high/low 630.0p/449.5p
*% relative to local index
Key management
Nick Prest Chairman
Andrew Thomis CEO
Simon Walther FD