Cohort plc half year results for the six months ended 31 October 2016

Published 12th December 2016

Cohort plc today announces its final results for the six months ended 31 October 2016.

Highlights include:

  • Adjusted* operating profit up 11% at £3.9m (2015: £3.5m).
  • Revenue up to £50.0m (2015: £49.7m).
  • Order intake of £63.6m including acquired order book of £23.1m (2015: £55.7m).
  • Strong closing order book of £129.6m (30 April 2016: £116.0m).
  • Net funds of £9.9m down on the year end, as expected (31 October 2015: £11.4m; 30 April 2016: £19.8m).
  • Interim dividend increased by 16% to 2.20 pence per share (2015: 1.90 pence per share).
  • Adjusted* earnings per share 16% lower at 5.99 pence (2015: 7.11 pence), reflecting a significant proportion of the earnings in the period being derived from the partially owned EID and MCL.

Looking forward

  • Stronger second half performance in prospect, maintaining our expectations for the year:
  • Historic second half weighting to be repeated
  • £49.5m of the 31 October 2016 order book is deliverable in the second half and underpins nearly 80% of the consensus forecast revenue for the full year.
  • Prospects for further order intake in the second half across the Group are encouraging.
  • Benefit of a full six months’ contribution from EID and elimination of SCS’s losses.
  • Agreement in principle to acquire a further 23% of EID from the Portuguese Government.
  • Remainder of MCL expected to be acquired on or before 31 December 2016.

* Adjusted figures exclude the effects of marking forward exchange contracts to market value, amortisation of other intangible assets and exceptional items.

Commenting on the results, Nick Prest CBE, Chairman of Cohort plc said:

“The Group’s first half operating profit increase was driven by the initial contribution from EID and a much better first half at MCL, balanced by adverse market conditions experienced in some other areas of the business. We are confident of a strong second half performance across the whole Group reflecting our normal seasonality, order book visibility, the benefit of a full second half contribution from EID and the elimination of SCS losses.

“Overall, Cohort’s order book and pipeline, market positions, capabilities and strong funding position provide confidence that we will make further progress in 2016/17, and we maintain our expectations for the full year.”

A presentation for analysts is being hosted today 12 December 2016 at 9.15am for 9.30am at Investec’s offices.