READING - Cohort plc, an independent technology group, announced a record performance for the first half of the fiscal year ending October 31, 2024, with significant increases in revenue, adjusted operating profit, and a robust order book.
The company reported a 25% increase in revenue to £118.2 million, up from £94.3 million in the previous year. Adjusted operating profit soared by 69% to £10.1 million, with a net margin of 8.5%. Adjusted earnings per share doubled to 20.00 pence. The order intake was strong at £139.2 million, and the closing order book stood at a record £541.1 million.
Operational success was attributed to higher UK MOD sales, particularly within the Communications and Intelligence division. The Sensors and Effectors division also reported a more than twofold increase in adjusted operating profit compared to the previous year.
The company's interim dividend saw an increase of over 10% to 5.25 pence per share, continuing its history of progressive dividend growth. Net funds were reported at £37.9 million, substantially exceeding expectations due to robust working capital flows and customer advances.
Looking ahead, Cohort anticipates a stronger second-half performance, in line with past trends, and remains on track to meet full-year expectations. The order book, which extends into the mid-2030s, includes over £120 million of revenue deliverable in the second half, covering over 99% of consensus forecast revenue for the financial year.
Cohort also highlighted recent strategic moves, including the conditional agreement to acquire EM Solutions Pty Ltd, expected to close shortly and significantly contribute to adjusted EPS in the first full financial year of ownership (2025/26). Additionally, the acquisition of Interactive Technical Solutions Limited has been completed and integrated within the Communications and Intelligence division.
Nick Prest CBE, Chairman of Cohort, commented on the results, noting the strong performance and the record order book which underpins the company's financial outlook. He also mentioned the heightened international tensions driving demand for defence and security solutions, contributing to a positive outlook for organic growth in the medium term.
The company also announced dividend dates, with the record date set for January 10, 2025, and the payment date for February 18, 2025. A Dividend Reinvestment Plan is available, with the latest election date being January 27, 2025.
Cohort will be holding analyst and investor presentations to discuss the half-year results, with recordings and further information available on their website.
This article is based on a press release statement from Cohort plc.
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