Cohort (CHRT)

Business description

Cohort is an AIM-listed defence and security company operating across four divisions: MASS (30% of FY18e sales); SEA (40%); MCL (15%); and the 57%-owned Portuguese business EID (15%) acquired in FY17.

Stock data

Market cap.£133.1m
Last close325.00p
High / Low (52 weeks)462.5p / 325.0p
Stock market listingLN
Forecast net cash (£m)11.5
Forecast gearing ratio (%)N/A
TeamIndustrials
SectorAerospace & Defence

Price performance

%1m3m12m
Actual(21.1)(14.5)(17.2)
Relative *(19.6)(14.1)(25)

* % Relative to local index

Other companies in sector Show

Company news

Should You Buy Fast-Growing Cohort PLC Instead Of Meggitt plc Or Cobham plc?

Wed, 05 Aug 2015 10:52:30 GMT

Cohort chief on latest MASS contract and EID acquisition

Tue, 13 Oct 2015 14:04:16 GMT

Should you buy, sell or hold Ocado Group plc, Carpetright plc and Cohort plc ...

Tue, 28 Jun 2016 11:48:45 GMT

Cohort is a 'good investment'

Fri, 22 Sep 2017 15:33:45 GMT

At £3.935, Is It Time To Sell Cohort PLC (AIM:CHRT)?

Wed, 08 Nov 2017 14:03:45 GMT

Y/E Apr Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 112.6 13.0 12.0 26.7 12.2 15.5
2017A 112.7 15.7 14.5 27.6 11.8 34.6
2018E 123.8 16.7 15.4 28.7 11.3 13.4
2019E 128.2 17.4 16.1 30.9 10.5 10.3

Last updated on 19/10/2017

Investment summary

Cohort’s earnings performance in FY17 once again exceeded our expectations. Higher profits from EID and MCL outweighed a decline at SCS, which has already returned to profit thanks to the swift action from management, integrating it into MASS and SEA. Both cash and the dividend also beat our estimates. The AGM statement indicated the growth strategy is supported by the balance sheet and continued order book development so far in FY18, with a backlog of £149m at 31 August. Management expectations remain unchanged, with H1 results to be announced on 13 December.

Last updated on 02/11/2017

Industry outlook

Cohort is heavily influenced by activities in defence and security (90% of FY17 sales). These markets require highly differentiated technologies and services with high barriers to entry based on customer relationships, regulation and high-level security clearances. The UK government's commitment to spend at least 2% of GDP on defence provides greater confidence, as does the parliamentary approval for the replacement of Trident.

Last updated on 02/11/2017

Key management

Andrew Thomis, CEO
Simon Walther, FD

Company address

2 Waterside Drive
Arlington Business Park
Theale
Reading
RG7 4SW
United Kingdom
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