Cohort – get onside with this heptagon, with 80% of current-year sales covered, looking for further growth for shares, new SQC TP 1550p

Mark Watson-Mitchell - 10.07.2026

The middle of next week, on Wednesday 15^th July, Cohort (LON:CHRT), the independent technology group, will declare its Final Results – they will be good and indicate further growth to come with a record Order Book. 

Expect bigger spend on Defence, so Cohort will benefit

The group’s shares, now 1324p, are up some 46% this year, while Target Prices are expected to be lifted upon the results. 

The Business 

Formed in 2006 and listed on AIM the same year, with a market capitalisation of just £27m, Cohort was founded on the principle that agile businesses can prosper by being part of a larger group, benefiting from greater financial strength, an enhanced market presence and the opportunity to share knowledge, relationships and best practice.  

Its mission was to build up a publicly quoted defence technical services business that would be independent, flexible and cost-effective. 

The £639.8m-capitalised Reading-based group, which employs over 1,600 people, is now the parent of seven innovative, agile and responsive businesses, based in the UK, Australia, Germany, Italy, Canada and Portugal, providing a wide range of services and products for British and international customers in defence, security and related markets. 

It offers a wide range of services and products for both its domestic and its export customers and provides sustainable growth through innovative technology and agile decision making, guided by a light-touch but effective corporate governance.  

With two main divisions: Communications and Intelligence; and Sensors and Effectors - the group has seven operating subsidiaries: Chess, EID, ELAC SONAR, EM Solutions, MASS, MCL and SEA. 

Communications and Intelligence 

EID designs and manufactures advanced communications systems for naval and military customers.  

EM Solutions designs, assembles, tests, and supports advanced mobile satellite communications terminals for naval and other customers.  

MASS is a specialist data technology company serving the defence and security markets, focused on electronic warfare, digital services, and training support.    

MCL designs, sources, and supports advanced electronic and surveillance technology for UK end users including the MOD and other government agencies.  

Sensors and Effectors 

Chess Dynamics offers surveillance, tracking and fire-control systems to the defence and security markets.  

ELAC SONAR supplies advanced sonar systems and underwater communications to global customers in the naval marketplace.   

SEA delivers and supports technology-based products for the defence market alongside specialist research and training services.  

Trading Update 

On Wednesday 27^th May, the group reported a strong trading update for the year to end-April, with revenue of £303m and adjusted operating profit of approximately £36m, both exceeding market expectations.  

The company achieved a robust order intake of around £313m, surpassing in-year revenue and resulting in a record closing order book of approximately £620m, providing strong cover for the upcoming financial year.  

While the Communications and Intelligence division saw significant revenue growth and improved margins, the Sensors and Effectors division experienced relatively flat revenue and lower net margins, partly due to a specific contract and the sale of a business.  

Cohort ended the year with net funds of £2.9m and has secured a new five-year bank facility of £175m. 

Management Comment 

CEO Andy Thomis stated that: 

"Cohort performed strongly in 2025/26, exceeding market expectations.  

Following another year of strong order intake, our closing order book has reached a new record level, and we have encouraging prospects for further orders. 

I'm particularly pleased with the strong maiden full year contribution from EM Solutions.  

The business has made good progress in capturing opportunities for growth and collaboration with other Cohort subsidiaries. 

Our strong balance sheet and liquidity provide a robust platform from which to continue to invest in the business while considering further targeted acquisitions. 

The high level of order cover provides confidence in a strong 2026/27 financial year." 

The Equity 

There are some 47.05m shares in issue. 

Co-founders Stanley Carter (19.19%) and Nicholas Prest (3.06%) are noteworthy holders, while other larger holders include Canaccord Genuity Wealth Management (5.52%), Octopus Investments (5.48%), Rathbone Investment Management (5.25%), Schroder Investment Management (3.08%), and JP Morgan Asset Management (3.04%). 

Broker’s Views 

Some six brokers follow the group, four of whom call the shares a Buy, one to Outperform and the final as a Hold. 

The consensus average Target Price is 1600p, the Lowest 1300p, the Highest at 1930p. 

Jefferies call the shares as a Hold, with a 1300p Target Price. 

RBC Capital Markets look for the shares to Outperform, with a 1740p Target Price. 

Analyst Robin Byde, at Zeus Capital, has a positive stance on the group, with a Buy note out suggesting a 1500p share Target Price; however, next week’s Results Statement may see a change. 

For the year to end-April, he estimates group revenues were £303.0m (£272.5m), with adjusted pre-tax profits of £35.4m (£27.0m), having generated 62.4p (53.5p) earnings per share and paying out a 17.9p (16.3p) dividend. 

For the current year,

he sees £315.4m sales, £39.3m profits, 66.0p earnings and a19.7p dividend. 

Fund Manager’s View 

At the start of this month, Josh McCathie, stated that Cohort was well positioned with NATO members in Europe which are upping defence spending. 

The manager of the VT Downing Small & Mid-Cap Income Fund noted that: 

“The group had announced multiple contract wins at the start of the year, including with the UK government for immediate delivery of uncrewed air systems, ultimately giving full year consensus revenue cover. 

This was followed by two contract wins with the Portuguese Navy to provide satellite communication terminals and integrated communication systems and networks to new patrol vessels.” 

Those contracts underpin the manager’s view that the group remains well positioned with European NATO members and has high exposure to where he expects members to focus spend in areas such as counter-drone, sonar and communication systems. 

My View 

Cohort’s operating businesses are market disruptors, driving innovation and creating solutions for the defence challenges facing our world today.  

In my view, this group deserves to be followed. 

On Tuesday, 10^th December 2024, I considered that despite them having already doubled to 1033p, there was so much more left to go for in buying the group’s shares. 

They have since been up to 1796p each. 

Ahead of next week’s results, now at just 1324p, having fallen 5% today, I reckon that they could still be a bargain buy. 

Accordingly, I have set a new Target of 1550p for the group's shares.

(Profile 06.08.19 @ 446p set a Target Price of 607p*)

(Profile 14.04.23 @ 445p set a Target Price of 489.5p*)

(Profile 10.12.25 @ 1033p set a Target Price of 1300p*)

(Profile 10.07.26 @ 1324p set a Target Price of 1550p)