Cohort PLC (LSE) reports Half Year Results

2025-12-10 · Stocks · QuoteReporter

The stocks discussed are traded on the London Stock Exchange (LSE). On December 10, 2025, Cohort PLC announced its half-year results for the six months ended October 31, 2025, highlighting a robust performance despite some challenges in profit margins.

Cohort reported a revenue increase of 9%, reaching £128.8 million compared to £118.2 million in the same period of 2024. This growth was driven by a strong contribution from EM Solutions and overall increases across most of the Group’s businesses, with the exception of MCL, which experienced a decline following a record performance in the previous year.

However, the adjusted operating profit for the period was marginally lower at £9.7 million, down from £10.1 million in 2024, resulting in a net margin of 7.5%, compared to 8.6% in the prior year. This decrease in profit margin was primarily attributed to the lower-margin deliveries in the Sensors and Effectors division, particularly from the Italian sonar program and the early sale of SEA’s Transport business.

Adjusted earnings per share (EPS) also reflected this trend, falling to 16.16 pence from 20.00 pence in the previous year, influenced by the adjusted operating profit and an increase in weighted share capital.

In terms of dividends, the Board has demonstrated confidence in the Group’s growth prospects by increasing the interim dividend by 10% to 5.80 pence per share, up from 5.25 pence per share in 2024. This decision underscores the Group’s commitment to a progressive dividend policy.

Cohort’s order intake for the period was £122.3 million, a decrease from £139.2 million in 2024, resulting in a closing order book of £604.5 million, slightly down from £616.4 million at the end of April 2025. The order book includes over £145 million of revenue deliverable in the second half of the financial year, which, alongside the first half revenues, covers 94% of the consensus forecast revenue for the full financial year. As of early December, this coverage has improved to 96%, indicating strong visibility for future revenue.

Looking ahead, Cohort maintains its guidance for the full year, expecting increased deliveries in both divisions to contribute positively to the Group’s profit performance and adjusted EPS. The outlook remains optimistic, supported by healthy demand in core defence markets, and the Group anticipates moving towards its mid-teen percent target for operating margins in the coming years.

In summary, while Cohort PLC experienced growth in revenue, it faced challenges in profit margins and EPS. The increase in the interim dividend reflects confidence in future performance, bolstered by a substantial order book and a positive outlook for organic growth.

Original Announcement

Title: Half Year Results
Date: 2025-12-10
Source: London Stock Exchange