Key facts
- Cohort's order book surged due to global conflicts and increased defense spending by NATO nations.
- Revenue rose 13% to £306.4m for the financial year.
- Order intake increased 10% to £314.2m, with the order book closing at a record £618.8m.
- The communications and intelligence arm saw a 27% revenue increase, offsetting flat performance in sensors and effectors.
- The company tripled its debt limit to £175m, positioning for potential M&A.
Conflicts in Ukraine and the Middle East have significantly boosted Cohort's order book, as NATO nations increase their defense spending. The defense technology group reported a 13% rise in revenue to £306.4m for the financial year, with order intake jumping 10% to £314.2m and its order book closing at a record high of £618.8m.
The communications and intelligence arm saw a 27% revenue increase, helping to offset a flat performance from sensors and effectors. Cohort plans to invest £15m into its acquisition Chess to consolidate operations and improve capacity, expecting material improvement in the coming years.
Overall demand is attributed to ongoing conflicts, persistent tensions in the Asia-Pacific region, and pressure from the United States for NATO members to increase defense spending. Cohort is also optimistic about the UK’s defence investment plan, which emphasizes technology. Despite the government's pledge to spend 3.5% of GDP on defense by 2035, the Treasury has not yet evaluated how this will be achieved, with the responsibility deferred to the next government.
The group has also increased its financial flexibility by tripling its debt limit to £175m and securing an option for an additional £50m, positioning itself for potential merger and acquisition activities.