AIM-listed defence group Cohort has reported robust half-year results, crediting its success to conflicts in Europe and the Middle East as well as "heightened international tensions" in the Asia-Pacific region.
The group, which owns six defence companies including Chess, EID, and SEA, saw a 25 per cent year-on-year surge in revenue for the six months leading up to 31 October, totalling £118.2m, as reported by .
The company attributed this growth chiefly to increased sales from the 海角视频 Ministry of Defence (MOD), "particularly within the communications and intelligence division."
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Cohort also revealed a record-breaking closing order book valued at £541.1m, a rise from £518.7m on 30 April. The firm expects to deliver over £120m of this revenue in the latter half of the financial year, with orders stretching into the mid-2030s.
Adjusted operating profit soared by 69 per cent to £10.1m, resulting in an adjusted earnings per share of 20 pence, a significant increase from 10.36 pence in 2023. Net funds were reported at £37.9m as of 31 October, a substantial improvement from the £13.3m recorded at the same time the previous year, a boost attributed to "working capital flows that included strong customer advances."
Chair Nick Prest expressed optimism, stating: "In line with previous experience, we anticipate a stronger performance in the second half and remain on track to achieve our expectations for the full year."
Prest highlighted that "heightened tensions" around the world are fuelling a rise in defence and security expenditure, with no expected slowdown for the sector. Cohort's financial outcomes are indicative of a broader increase in global defence spending, as major players like BAE Systems and Lockheed Martin also reap the benefits of growing geopolitical unrest.
This year, Cohort has clinched contracts worth around £120m and witnessed its share value skyrocket by 94.54 per cent in 2024. The firm's robust performance emphasises the continuous demand for defence capabilities within an ever-changing security environment.
In the previous month, Cohort publicised its biggest acquisition to date, purchasing the Australian-based EM Solutions for £75m, a top-tier producer of advanced SATCOM terminals for naval and defence clients worldwide.