Cohort (CHRT) has won a follow up order from BAE Systems to provide external communications on a Royal Navy contract. This second stage of the deal is worth about £17m for the group's SEA subsidiary, which specialises in advanced systems and software for global defence markets.
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Although widely expected, news of the agreement sparked a 5 per cent rise in the group's share price, as investors rejoiced at the continued popularity of Cohort's niche range of cutting-edge products. SEA has been busy installing its faster and more cost-effective communication equipment on Royal Navy submarines ever since it was awarded an initial contract in 2009 to do so. Management expects further deals to emerge on the project in 2017.
