Cohort (CHRT) H1 2025 earnings summary

Executive summary

• Achieved record first-half performance with revenue up 25% to £118.2m and adjusted operating profit up 69% to £10.1m year-over-year, supported by robust cash flow and a record order book.

• Order intake of £139.2m exceeded revenue, growing the order book to £541.1m, covering more than 99% of consensus revenue forecasts for the year.

• Acquisition of EM Solutions, funded by cash, bank debt, and a £40m placing, will expand product range, technology, and geographic reach, and is expected to be materially accretive to adjusted EPS.

• Interim dividend increased by over 10% to 5.25p per share, continuing a progressive dividend policy since IPO.

• Employee headcount rose to over 1,400, reflecting confidence in the business pipeline and order book.

Financial highlights

• Revenue rose 25% year-over-year to £118.2m; adjusted operating profit up 69% to £10.1m; adjusted EPS increased 93% to 20.00p.

• Net margin improved to 8.5% from 6.4% last year; net funds at period end were £37.9m, up from £13.3m a year ago.

• Cash inflow from operations was £34.7m, up from £10.5m last year, driven by working capital movements and customer advances.

• Interim dividend set at 5.25p per share, up from 4.70p.

• Overhead increase reflects investment in headcount, now over 1,400 employees.

Outlook and guidance

• Order book of £541.1m covers over 99% of consensus forecast revenue for the full year, with over £120m deliverable in H2.

• Second half performance expected to be stronger, especially in Sensors and Effectors; full-year profit expectations maintained.

• EM Solutions expected to be materially accretive to adjusted EPS in its first full year.

• Net margin for the group targeted to rise to low/mid-teens over 3–5 years.

• Tax rate for adjusted earnings guided at 20% (excluding EM Solutions), rising to 21% including EM Solutions for FY25.