Cohort (CHRT) Trading Update summary

Trading performance and financial highlights

• Achieved strong revenue and profit growth for FY2024/25, meeting market expectations.

• Net funds exceeded £5m, significantly ahead of expectations, following the £75m EM Solutions acquisition and £41m fundraising.

• Group net margin was 10.2%, slightly down from 10.4% last year.

• Communications and Intelligence division saw net margin rise to 17%, while Sensors and Effectors' margin fell to just under 9%.

• Consensus market expectations were £27.6m trading profit on £245m revenue, with adjusted EPS of 46.1p.

Order book and business development

• Record closing order book of approximately £615m, up from £518.7m the previous year.

• Order book covers about 80% of current market revenue expectations for the new financial year.

• Order intake (excluding EM Solutions) was around £285m, 12% higher than last year when adjusted for a large one-off contract.

• On-order revenue now extends into the mid-2030s, supporting long-term growth.

• Sale of the small Transport division for over £8m will further focus the business on defence and security.

Strategic initiatives and outlook

• EM Solutions acquisition completed in January 2025, broadening naval systems offering and global footprint.

• Integration of EM Solutions is progressing as planned, with a strong contribution expected in FY2025/26.

• Non-core Transport division disposal reduces non-defence revenue to about 3% of total.

• Strong demand from domestic and export customers, with global defence spending rising due to geopolitical tensions.

• Mid-term aim to improve net margins to low to mid-teen percentages remains unchanged.