Chairman’s statement

Cohort continued to make good progress in 2020, achieving a record adjusted operating profit of £18.2m on revenue of £131.1m. MASS and EID both posted an increase in profit and we benefited from a full year contribution of Chess.”

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Highlights presentation video

Financial highlights FY 2019/20

Adjusted operating profit (£m)

Order intake (£m)

Net debt (£m)

Total revenue (£m)

Operational highlights FY 2019/20

  • Full year contribution from Chess driving overall growth in Group’s performance
  • Record performance from MASS
  • Stronger year from EID
  • Weaker performance from MCL and SEA
  • Agreement to acquire Wärtsilä ELAC Nautik GmbH (ELAC)
  • Dividend increased by 11%
  • Net debt better than expected at £4.7m (2019: £6.4m)

Measuring our progress

Indicates the changes in total Group revenue compared with prior years.

Why is it important?

Revenue growth gives a quantified indication of the rate at which the Group’s business activity is expanding over time.




Comment on results

Of this growth, the annual impact of Chess added around £14.7m; excluding this the underlying Group revenue of £116.4m is 4% lower than in 2019, mainly due to falls at SEA and MCL.

Change in Group operating profit before exceptional items, amortisation of other intangible assets, research and developmentexpenditure credits and non-trading exchange differences, including marking forward exchange contracts to market.

Why is it important?

The adjusted operating profit trend provides an indication of whether additional revenue is being gained without profit margins being compromised and whether any acquisitions are value enhancing.




Comment on results

Of this growth, the annual impact of Chess added around £2.3m; excluding this the underlying Group adjusted operating profit of £15.9m is 2% lower than the 2019 equivalent figure with falls at SEA and MCL the main contributors. The 2020 figure also includes the impact of IFRS 16 (not in the 2019 figures) which added ~£0.2m to the adjusted operating profit, which would be another 1% reduction in the KPI on a like for like basis, £15.7m versus £16.2m or 3% lower.

Orders for the next financial year expected to be delivered as revenue, presented as a percentage of consensus market revenue forecasts for the year.

Why is it important?

Order book visibility, based on expected revenue during the year to come, provides a measure of confidence in the likelihood of achievement of future forecasts.




Comment on results

This is higher than the last two years and has already increased to 75% in early July 2020.

Annual change in earnings per share, before exceptional items, amortisation of other intangible assets and non-trading exchange differences including marking forward exchange contracts to market, all net of tax.

Why is it important?

Change in adjusted earnings per share is an absolute measure of the Board’s management of the Group’s return to shareholders (net of tax and interest).




Comment on results

The 11% increase compares to a 12% increase in the adjusted operating profit with the growth being mostly driven by earnings from our part owned subsidiaries (EID and Chess). The actual adjusted earnings only increased 5%, with a more significant interest charge (£0.5m higher) and the weaker (as a whole) 100% owned UK businesses partly offsetting the growth at EID and Chess.

Net cash generated from operations (net of interest and net capital expenditure) before tax as compared to the profit before tax and interest, excluding amortisation of other intangible assets over a rolling four-year period.

Why is it important?

Operating cash conversion measures the ability of the Group to convert profit into cash.




Comment on results

The weaker conversion in the last two years reflects the weaker cash performances at SEA and Chess. Our expectation is that the conversion rate should increase in 2020/21. The 2018 figure is high due to the very good cash performance in 2015 still included in the four-year rolling forecast. In 2015 the conversion was 206% for the single year.

Total sales to markets outside the UK and Portugal.

Why is it important?

International markets are important to the organic growth of the business and reduce our dependence on domestic markets.




Comment on results

The increase in 2020 export revenue is driven by export sales at EID as well as a full year of Chess sales. Of particular note was an increase in sales to the USA and Europe, both of which we expect to continue to grow.

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