Cohort (LON:CHRT) – up 80% in one year

11.07.2025

Next Wednesday, 16^th July, will see the independent technology group Cohort declare its Final Results for the year to end-April.

They are expected to show strong growth in that year, together with a record order book.

The Reading-based group, which is split into two segments - Communications and Intelligence, and Sensors and Effectors - contains seven businesses based in the UK, Australia, Germany and Portugal, providing a wide range of services and products for domestic and export customers in defence and related markets.

In a Trading Update issued at the end of May this year, CEO Andrew Thomis stated that:

"Cohort achieved strong growth in revenue and profits in 2024/25, in line with market expectations.

Following another year of strong order intake and the recent acquisition of EM Solutions, we have a record closing order book and encouraging prospects for further orders.

We are excited about the integration of EM Solutions and the additional opportunities for growth it represents.

It was a significant step for Cohort, broadening our strong naval systems service offering, bringing in new customers and enhancing the global footprint of the combined business.

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

We expect to continue our strong organic growth in 2025/26 and beyond."

Yesterday the group’s shares fell 24p to 1,532p on a very slight dealing volume of just 21,818 shares traded, just 11% of the average daily dealing volumes.

The expectation is that the group had a revenue of around £245m, upon which it could have made some £27.6m profit, worth 46.1p per share in earnings.

This time last year I featured Cohort after its 2024 results, stating that:

“The shares at 850p look to be an excellent purchase, especially considering the wide breadth of this group’s high technology products being sold into global growth markets.”

The subsequent 80% improvement in the group’s share price has been an excellent performance – the question now is whether they are worth ‘top-slicing’ at these levels.

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