Cohort PLC Reports Record Revenue of GBP128.8 Million, Maintains Strong Order Book Amid Challenges

Cohort PLC reported record revenues of GBP128.8 million for the first half of the year, supported by a strong order book of GBP604.5 million, which covers 96% of external revenue forecasts. The interim dividend increased by 10%, reflecting the board's confidence.

However, adjusted operating profit declined to GBP9.7 million, and adjusted earnings per share fell to 16.16p, indicating reduced profitability. The company experienced an operating cash outflow of GBP27.9 million, leading to a net debt of GBP32.5 million.

Revenue from the UK Ministry of Defense is projected to dip below 50% of total revenue. Despite logistics challenges affecting the MCL and Chess divisions, Cohort is well-positioned to benefit from increased defense spending. The recent acquisition of EM Solutions has been integrated successfully, contributing positively to profits.