Cohort – the AGM Update next week could well underpin a share price turnaround from 1195p to back over 1300p
Mark Watson-Mitchell - 18.09.2026
Cohort is a group of like-minded technology companies operating in the defence and security markets
Next Thursday, 24th September, Cohort (LON:CHRT) will hold its AGM to approve its 2026 Report & Accounts, ahead of which I look forward to reading the group’s AGM Trading Update.
Just over a month ago its shares were trading at over 1450p each, they have since eased to around 1140p before picking up over the last week to 1195p.
I believe that this group offers growth investors a substantial upside with its shares at the current level.
A positive AGM Trading Update will certainly kick the shares into firmer territory.
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 £562m-capitalised Reading-based group, which employs over 1,700 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 the 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.
2026 Final Results
On Wednesday, 15th July, the Group reported record revenue of £306.4m for the year to end-April, a 13% increase from £270.0m in 2025, alongside a 32% surge in adjusted operating profit to £36.3m from £27.5m, exceeding expectations.
Adjusted earnings per share rose by 14% to 61.9p, and the Company maintained a strong order intake of £314.2m, contributing to a record closing order book of £618.8m.
The proposed final dividend per share increased by 10% to 12.10p, reflecting a consistent dividend growth since its IPO.
The Company also secured a renewed banking facility, tripling its size to £175m, providing significant financial flexibility for future investment and growth.
Management Comment
Upon issuing the Finals, CEO Andrew Thomis stated that:
"Cohort continues to see strong demand for our products and services from both our domestic and export customers, reflecting our strong and relevant offerings in NATO Europe and elsewhere.
Overall demand has been driven by the conflicts in Ukraine and the Middle East, persistent tensions in the Asia-Pacific Region and pressure from the United States administration on the other members of NATO to increase their defence spending.
We are also encouraged by the UK DIP's emphasis on relevant technology areas including the hybrid navy, Atlantic Bastion, and protection of underwater infrastructure.
Our trading performance and earnings were ahead of consensus market expectations, driven by very strong performance in our Communications and Intelligence division.
Order intake continued at the high levels we have seen over the last three years, and the resulting record order book of almost £620m gives us a solid base for 2026/27 and beyond.
We see good prospects for further order intake in the year ahead, providing a solid platform to continue our growth momentum."
The Equity
There are some 47.05m shares in issue.
Co-founders Stanley Carter (19.12%) and Nicholas Prest (3.05%) are noteworthy holders, while other larger holders include Canaccord Genuity Wealth Management (5.43%), Octopus Investments (5.21%), Rathbone Investment Management (5.05%), Schroder Investment Management (3.33%), and JP Morgan Asset Management (3.04%).
Broker’s Views
Some eight brokers follow the group, six of whom call the shares a Buy, one to Outperform and the final as a Hold.
The consensus average Target Price is 1679p, the Lowest 1300p, the Highest at 2150p.
Berenberg Bank states that the shares are a Buy, with a 1630p Target Price.
Jefferies calls the shares as a Hold, with a 1300p Target Price.
RBC Capital Markets look for the shares to Outperform, with a 1760p Target Price.
Analyst Robin Byde, at Zeus Capital, has a positive stance on the group, with a Buy note out having recently upped his Target Price to 1700p (1500p) a share.
For the year to end-April 2027, he estimates group revenues of £325.9m (£306.4m), with adjusted pre-tax profits of £39.6m (£34.2m), generating 64.1p (60.8p) earnings per share and paying out a 19.7p (17.9p) dividend.
For the 2028 year he sees £356.6m sales, £46.4m profits, 75.0p earnings and a 21.7p dividend.
The year to end-April 2029 Byde estimates could see the group report revenues of £386.1m, with £50.8m profits, 82.2p earnings and paying a 23.9p per share dividend.
Over at Singer Capital Markets, analysts Henry Carver and Caroline de La Soujeole in mid-August initiated their coverage of the group rating the group’s shares as a Buy, but with a 1630p a share Target Price.
They estimate that the current year will see £330.7m of sales, with £42.3m of adjusted pre-tax profits, 71.7p per share in earnings, and a 19.69p dividend.
For the 2028 year they see £353.6m of revenues, with £48.3m of profits, 81.6p of earnings and paying a 21.66p dividend per share.
Their 2029 estimates are for £382.1m sales, £55.5m profits, 93.7p earnings and a dividend of 23.82p.
My View
Cohort has a record Order Book, a strong balance sheet and a proven ability to also build through strategic acquisitions.
Now at 1195p the group’s shares look undervalued relative to its profits potential, with 1350p being an easy early price objective.
(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)
the group’s shares look undervalued relative to its profits potential, with 1350p being an easy early price objective.
(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)
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