Cohort posts modest growth in operating profit

AIM-listed independent technology company Cohort posted modest growth in operating profit for the six months to October 31st, according to its interim results published on Thursday.

The group, which has a market capitalisation of £49.89m and operates through three subsidiaries; MASS, SCS and SEA, saw growth in adjusted operating profit, earnings per share and its interim dividend.

Adjusted operating profit increased by 9% to £3.3m, up from £3m in the corresponding period in 2011. Adjusted earnings per share increased by 25% to 6.97p and the interim dividend increased by 20% to 1.20p per share.

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Revenue fell to £33.8m from £37.4m in the corresponding period last year and the group had net cash of £12.1m following dividends and purchase of own shares of £1.2m compared to £14.1m on April 30th 2012.

Some £27.3m orders are deliverable in the second half underpinning revenue expectations, according to the company's results statement. The group added that prospects for further orders in the second half across the group are encouraging.

Nick Prest, Chairman of Cohort, said: "Cohort has continued to make progress although the tightness in the UK defence market has persisted. First half trading performance was ahead of last year despite reduced revenue.

"There are some good opportunities ahead both in defence and non-defence markets, and our order book remains strong. We do see uncertainties ahead, particularly at SCS. I expect that the difficult market conditions they are facing will improve when the MOD's re-organisation initiatives are complete, though this could take some time."

"On balance we believe that Cohort will continue to make progress in the current financial year and beyond."

Cohort's share price was up 2.49% to 123.50p at 15:33 on Thursday afternoon.

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