Cohort fires on all cylinders

Cohort's MASS business has capitalised on growing demand for electronic warfare operational support in the Middle East, one of the few regions where defence budgets continue to rise. That, and a growing presence in cyber security, saw the segment contribute almost a third of group revenue and over half of adjusted operating profit.

Demand for submarine communication systems and training support activity, meanwhile, ensured that Cohort's other units proved their worth. That included impressive contributions from recent acquisitions Marlborough Communications and J+S, which together brought in £18m of sales and £38m of orders.

Management isn't worried about further potential Ministry of Defence cuts derailing this progress. Aside from the £72m of orders due for delivery this year, Mr Thomis says state spending on submarines, intelligence and information systems will grow 20 per cent over the next three years. Broker Investec has upgraded its adjusted EPS forecasts for the year to April 2016 by 5 per cent to 21.3p (from 20p in 2015).