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Cohort plc (LSE:CHRT) share prices took an upward trajectory today following release of final results and an announcement of winning a multi-million pound contract. The share price has been in decline since 21 March. The shares rose over the 100 pence mark for the first time since 02 April, reaching 107.00 by 1:00 p.m. UCT, an increase of more than 20% from its closing price of 88.50 on 22 June.
Cohort reported a 56% increase in pre-tax profits with £4.2 million versus £2.7 million in FY2011, and a 51% increase in adjusted pre-tax profit at £6.5 million over FY2011’s £4.3 million. Total revenue was up 16% from £65.1 million to £75.4 million. Net funds available of £14.1 million is 110% higher than £6.7 million at the previous year end. Cohort’s order book is holding steady with £107 million in the pipeline versus £104 million last year.
The company has proposed a 1.9 pence final dividend per share, for a total dividend per share of 2.9 pence for the full year.
Nick Prest, Cohort’s Chairman, said that the company “continued to improve its performance in the year, achieving a record trading profit. The combination of a good order book, strong net funds, and businesses with operational momentum provides a solid foundation for the coming year.”
The contract award is a multi-million pound extension of an existing IT service contract between the Sentry Whole Life Support Programme (WLSP) and Cohort’s MASS subsidiary. The WLSP is a partnership between the British Ministry of Defence and select industries, which together comprise the Joint Sentry Support Team (JSST). MASS is part of the JSST along with AAR, BAE Systems, and Cobham Aviation. The team supports and maintains the UK’s AWACS fleet. MASS manages the secure IT systems that permit the group to share sensitive information.
Cohort CEO, Andrew Thomis, said that “This five-year extension is a significant vote of confidence in our capabilities and our partnering approach to service provision.”
Company Spotlight
Cohort plc is the parent of three subsidiary companies, each of which is involved in a different aspect of high-tech electronics for military applications. Mass specialises in electronic warfare operational support, but also supplies ICT solutions for new schools and secure information systems for government and business. SCS specialises in Capability Integration, ensuring that all aspects of complex information and operating systems are fully integrated. SEA specialises in systems engineering and design services primarily supporting naval and tactical communications for the British submarine fleet and tactical battlefield data systems.
