Cohort's (CHRT) shares jumped over 10 per cent on the day these full-year figures appeared, after the defence equipment and software specialist reported a forecast-busting performance. However, much of this reflected a big fall in the cost base - group sales for the year actually fell slightly.
Of the three operating divisions, surveillance and software specialist division SEA maintained sales at £31.9m, but efficiencies pushed profits there up from £1.7m to £3.1m. Moreover, Cohort's electronic warfare unit, MASS, saw sales slip from £26.1m to £24.8m, but adjusted operating profit rose 4 per cent to £5m. Still, a continued squeeze on defence spending has hit demand at the group's consultancy division, SCS, where sales dropped from £17.5m to £14.1m and operating profit collapsed 62 per cent to £0.5m. But management remained reasonably upbeat, with the group order book having held up well at £95.7m - that's down from £107.1m a year earlier, but reflects £11m of order run-off during the year. Group finances are in good shape, too, which has facilitated the £1.9m purchase of the freehold on one of the group's sites.
Broker Investec Securities has maintained its forecasts for 2014 and expects adjusted pre-tax profit of £7.8m, giving adjusted EPS of 15.9p (from £7.5m and 17.7p in 2013).
| COHORT (CHRT) | ||||
|---|---|---|---|---|
| ORD PRICE: | 152p | MARKET VALUE: | £62m | |
| TOUCH: | 148-153p | 12-MONTH HIGH: | 152p | LOW: 90p |
| DIVIDEND YIELD: | 2.3% | PE RATIO: | 7 | |
| NET ASSET VALUE: | 145p* | NET CASH: | £16.4m | |
| Year to 30 Apr | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 78.6 | 6.50 | 12.6 | 1.75 |
| 2010 | 78.1 | 2.75 | 5.63 | 2.05 |
| 2011 | 65.1 | 2.70 | 6.79 | 2.40 |
| 2012 | 75.4 | 4.16 | 11.3 | 2.90 |
| 2013 | 70.9 | 8.51 | 20.8 | 3.50 |
| % change | -6 | +105 | +84 | +21 |
Ex-div: 28 Aug Payment: 25 Sep *Includes intangible assets of £31.5m, or 77p a share | ||||
