Cohort half year profits double

Shares in defence technology supplier Cohort rose more than 6% after the firm reported a doubling of profits for the six months ended 31 October.

Continuing its recovery, the group's revenue rose 14% from £32.7m to £37.4m, boosting pre-tax profits which soared from £0.7m to £1.8m. Earnings per share rose from 1.04p to 3.46p.

In a statement, the firm said: "The group's profitability has returned to a more satisfactory level, notwithstanding the uncertainties in some areas of the defence market.

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"The group continues to look to new domestic and overseas markets aligned to our defence and security offering for growth. Progress is being made, but the timing of conversion of opportunities into new business streams, especially in overseas markets, is difficult to predict.

"Cohort remains on track to meet management expectations with much of the second half revenue underpinned by our strong order book. Overall, our strong order book, pipeline of prospects and financial position provide confidence for the future."

The board has proposed an interim dividend of 1p per share, up from 0.8p per share the year before.

Investec maintained its buy stance and 140p target on the stock.

The share price 6.56% to 97.5p by 13:04.

NR