Gamble of the week: a punt on cyber-security

Despite a 7.5% cut to the defence budget over the next five years, the UK government is still spending £650m on Britain's cyber-security. Which is where this firm comes in. Paul Hill explains.

The defence industry is changing rapidly. Gone are the days when armed combat simply involved having boots on the ground accompanied by heavy fire-power. Nowadays the military is far more clinical, possessing top-notch kit that can secretly gather intelligence, attack with precision and defend against cyber-warfare. Indeed, this shifting landscape was reflected in October's UK defence cuts. Despite the £24.3bn budget being cut by 7.5% in real terms over five years, £650m of funds were allocated to enhance Britain's cyber-security.

This is Cohort's bread and butter. Developing and running cutting-edge information and electronic warfare systems for the armed forces accounts for 83% of turnover. Indeed, its state-of-the-art MASS division provides the clever technology that helps protect fighter pilots when they are under attack from, say, heat-seeking missiles. Meanwhile, its SEA unit designs advanced sonar equipment and observation platforms for satellites, along with monitoring radio spectrum to foil enemy spy networks.

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Paul gained a degree in electrical engineering and went on to qualify as a chartered management accountant. He has extensive corporate finance and investment experience and is a member of the Securities Institute.

Over the past 16 years Paul has held top-level financial management and M&A roles for blue-chip companies such as O2, GKN and Unilever. He is now director of his own capital investment and consultancy firm, PMH Capital Limited.

Paul is an expert at analysing companies in new, fast-growing markets, and is an extremely shrewd stock-picker.