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.£165.3m
Last close403.50p
High / Low (52 weeks)462.5p / 312.5p
Stock market listingLN
Forecast net cash (£m)11.5
Forecast gearing ratio (%)N/A
TeamIndustrials
SectorAerospace & Defence

Price performance

%1m3m12m
Actual6.9(7.8)28.7
Relative *8.2(6.5)20.8

* % 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 PLC (CHRT.L) Placed Under the Lens

Mon, 25 Sep 2017 23:15:00 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

Which Direction Are Cohort PLC (CHRT.L) Shares Trending?

Mon, 25 Sep 2017 13:04:33 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 15.1 19.3
2017A 112.7 15.7 14.5 27.6 14.6 42.9
2018E 123.8 16.7 15.4 28.7 14.1 16.6
2019E 128.2 17.4 16.1 30.9 13.1 12.8

Last updated on 23/08/2017

Investment summary

Cohort’s earnings performance in FY17 once again exceeded our expectations. Higher profits from EID and MCL more than outweighed the sharp contraction at SCS, where a swift response from management has already improved profitability by its integration into MASS and SEA. The cash performance was better than expected and the dividend increase to 7.1p was also ahead of our forecast. We expect further solid progress in the current year, although our FY18 estimate is lower largely as a result of the contraction at SCS. Our fair value estimate currently stands at 471p.

Last updated on 06/09/2017

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 06/09/2017

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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