Full Year 2026 Cohort PLC Earnings Call Transcript
Key Points
- Cohort PLC (COHTF) reported record revenue and adjusted operating profit for the '25/'26 financial year, with revenue exceeding GBP306 million and operating profit growing by 32% to over GBP36 million.
- The company has a strong order book of nearly GBP620 million, providing excellent visibility of future revenues with contracted work extending out to 2037.
- Cohort PLC (COHTF) has consistently increased its dividend every year since 2006, reflecting the resilience of its business model and confidence in long-term prospects.
- The Communications and Intelligence division saw a significant revenue increase of 27% and an operating profit rise of over 50%, driven by strong program execution and favorable contract awards.
- The company maintains a strong balance sheet with positive net funds, demonstrating robust cash generation and financial health.
- The Sensors and Effectors division experienced flat revenue and decreased profitability due to the disposal of a high-margin non-core transport business.
- Cohort PLC (COHTF) moved from a net funds position to net debt during the year, primarily due to significant working capital outflows associated with major program execution.
- The company faces operational challenges at Chess, with the need to consolidate operations from 13 buildings into a single facility to improve efficiency.
- There is a risk associated with the Sensors and Effectors division's margins, which were about 7% in the period, with Chess remaining a key risk factor.
- The UK market, which accounts for a significant portion of revenue, is not expected to grow as rapidly as export markets, potentially impacting overall growth.
Okay. Well, good morning, everybody, and thank you very much for those joining us in the room and for those joining us virtually as well. I'm Andy Thomis. I'm the Chief Executive at Cohort plc, and I'm here with Simon Walther, who's our Finance Director.
Cohort provides advanced defense technologies and services to the UK and allied nations worldwide. And Simon and I are here to present our latest financial results and to explain the innovation, geopolitics, market drivers that support our growth.
Now, there we are. Cohort's businesses share a common purpose, which is developing advanced technologies that contribute to our customers' national security and defense. Each of our businesses brings its own specialist expertise.
Collectively, they deliver innovative solutions that help customers address increasingly complex operational challenges. Operating through our Communications and Intelligence and Sensors and Effectors divisions, we offer a broad range of capabilities, as you can see from this slide.
We
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