READING: UK defence technology group Cohort plc (AIM: CHRT) posted record revenue and adjusted operating profit for the year ended April 30, 2025, driven by strong demand and a robust order book extending into the 2030s.
The Group reported revenue of £270.0 million, up 33% from the previous year, with adjusted operating profit rising to £27.5 million from £21.1 million.
Cohort said adjusted earnings per share and net funds surpassed market forecasts, supported by a full-year dividend increase of 10%, continuing its uninterrupted run of annual dividend growth since its IPO in 2006.
Excluding last year’s major Royal Navy deal worth £135m, underlying order intake rose 11%, further strengthening the company’s record order book of £616.4 million. Chairman Nick Prest CBE credited the performance to organic growth and the acquisition of EM Solutions, which contributed positively in its first three months of integration.
“Cohort’s strong cash generation and long-range visibility underpin our optimism for sustained organic and strategic growth,” Prest said in a statement.
The company noted that its 2025/26 order book covers 79% of revenue forecasts, bolstered by UK strategic defence investments, NATO-led initiatives, and Australia’s naval expansion, providing fertile ground for future earnings.
Adjusted EPS for 2025/26 is now expected to exceed previous guidance, with net funds forecast between £10 million and £15 million at year-end, despite planned investments and expected reversal of working capital inflow.
The Communications and Intelligence division grew with the inclusion of EM Solutions, while ongoing demand from the UK MOD, AUKUS programme, and NATO allies strengthened export momentum.
Looking ahead, Cohort anticipates net margin improvement into the mid-teens range in subsequent years, as geopolitical tensions drive continued global investment in defence technologies.