A month ago we highlighted the resilience of Cohort's (CHRT) business model after the defence equipment supplier managed to bump-up adjusted operating profits by 18 per cent in its financial year through to the end of April; a result that was all the more impressive given the tight end markets in which the group operates.
Defence spending has been subject to increased oversight as governments, both home and abroad, have struggled to keep fiscal deficits in check. But it seems that specialist operators like Cohort, which offer niche defence applications, have been faring relatively well despite the budgetary strictures.
Sales at MCL - Cohort's electronic warfare and surveillance business – provided the standout performance through to the 2016 year-end. And it's just been announced that another subsidiary - Marlborough Communications – has won a contract for airborne communications support with the UK Ministry of Defence valued at up to £7.7m.
