Tight government defence budgets threatened to sink Cohort (CHRT) in the reported period, but the defence equipment and software supplier succeeded in drumming up demand for its niche products. Previous acquisitions augmented solid organic growth, propelling adjusted operating profits up 18 per cent to £11.9m.
Sales soared 35 per cent at MCL - Cohort's electronic warfare and surveillance business - as it delivered on an £11m order from the British Army for hearing protection systems. Both revenue and profit surged by more than a fifth at SEA, reflecting the integration of maritime systems group J+S and robust demand from the Royal Navy for submarine communication systems and support. Profits also rose at the key MASS business, reflecting a better mix of sales of electronic warfare systems and secure communications. But they slid 8 per cent at SCS as the defence advisory business failed to renew a framework contract with Nato, although it has continued to win revenue from the organisation.