Chairman’s statement

Cohort continued to make progress in 2021, achieving a record adjusted operating profit of £18.6m (2020: £18.2m) on revenue of £143.3m (2020: £131.1m). MCL and EID both posted an increase in profit and we benefited from an initial five-month contribution from ELAC.

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Highlights presentation video

Financial highlights FY 2020/21

Adjusted operating profit (£m)

Order intake (£m)

Net funds / (debt) (£m)

Total revenue (£m)

Operational highlights FY 2020/21

  • Initial contribution from ELAC driving overall growth in Group's performance
  • Good performance from MASS, although slightly weaker than last year's record high
  • Much stronger year from EID and better performance from MCL
  • Weaker performances from CHESS and SEA
  • Acquisition of Wärtsilä ELAC Nautik GmbH (ELAC) completed
  • Adjusted operating profit of £18.6m (2020: £18.2m) on revenue of £143.3m (2020: £131.1m)
  • Dividend increased by 10%
  • Net funds better than expected at £2.5m (2020: net debt £4.7m)

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, ELAC added £8.3m; excluding this the underlying Group revenue of £135.0m was 3% higher than in 2020, mainly due to increases at EID and MCL offsetting falls at SEA.

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 impact of ELAC added £1.2m; excluding this the underlying Group adjusted operating profit of £17.4m was 4% lower than the 2020 equivalent figure with falls at Chess and SEA the main contributors.

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 three years and has already increased to 70% in mid-July 2021.

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 9% decrease compares to a 2% increase in the adjusted operating profit with the growth being mostly driven by earnings from our part owned subsidiary (EID). The main reason for the fall was an expected increase in the tax charge (rate increasing from 6.6% in 2020 to 17.4% in 2021). The tax rate increase was due to the inclusion of Germany (31%) and the timing of R&D credits in Portugal.

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 stronger conversion in the last year reflects good cash performance at SEA, MCL and EID. Our expectation is that the conversion rate should decrease in 2021/22 due to the favourable timing in 2020/21. The conversion rate in 2020/21 alone was 112%.

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 2021 export revenue is driven by export sales at EID, Chess, and the inclusion of ELAC. Of particular note was an increase in sales to the Middle East and Europe.

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