Cohort (CHRT) Status update summary

Financial performance and shareholder returns

• Achieved record revenue of over GBP 306 million and a 32% increase in operating profit to more than GBP 36 million, with robust demand and an order intake of GBP 314.2 million, resulting in a year-end order book of nearly GBP 620 million.

• Dividend increased by 10% to GBP 0.179, continuing a 20-year track record of annual increases and reflecting confidence in long-term prospects.

• Communications and Intelligence division saw revenue rise 27% and adjusted operating profit grow by over 50%, while Sensors and Effectors division maintained flat revenue but expects margin improvement as legacy projects close.

• Positive net funds position restored at year-end, with GBP 2.2 million, after significant working capital movements during the year.

• Over the past five years, GBP 142 million cash generated from operations enabled GBP 60 million organic investment, GBP 40 million in acquisitions, and GBP 30 million in dividends.

Strategic outlook and guidance

• Order book underpins 88% of expected revenue for FY 2026/2027, supporting double-digit earnings growth targets through 2029.

• Capital allocation plan anticipates GBP 140 million cash from operations over three years, with GBP 60 million for organic growth and GBP 30 million for dividends, leaving GBP 50 million plus a new bank facility for acquisitions.

• Guidance reflects confidence in business performance, disciplined capital allocation, and flexibility for value-enhancing opportunities.

Operational initiatives and innovation

• Appointed first Chief Operating Officer to drive operational performance, launch cross-group forums, and implement a project life cycle framework.

• Investing GBP 15 million in a new facility for Chess to consolidate operations and improve efficiency.

• Focused on technical innovation, including KraitSense sonar, Enlightor and Erazor underwater protection systems, and advanced satellite communications integrating optical and RF technologies.