Cohort PLC (AIM:CHRT) shares fell 6% to 1,031p after the defence technology group posted higher first-half revenue but slightly weaker profits, as a shift in programme mix and working-capital demands squeezed margins.
Revenue for the six months to 31 October rose 9% to £128.8 million, helped by a strong maiden contribution from EM Solutions and growth across most divisions.
Adjusted operating profit edged down to £9.7 million from £10.1 million, taking the margin to 7.5% from 8.6%. Adjusted earnings per share fell to 16.16p, affected by the lower profit and a larger share count.
Order intake came in at £122.3 million, below last year’s £139.2 million, but the order book remains robust at £604.5 million.
More than £145 million of that is expected to convert into revenue in the second half, giving what the company says is 94% coverage of full-year consensus forecasts, rising to 96% by early December. The interim dividend was lifted 10% to 5.8p.
Operationally, the Communications and Intelligence division delivered strong profit growth and a 16.8% margin, while Sensors and Effectors saw margins narrow to 4.8% owing to low-margin sonar deliveries and the sale of SEA’s transport unit.
Cohort reiterated its full-year outlook, pointing to healthy demand across core defence markets.