Shares in Cohort PLC (AIM:CHRT) were fired 13.3% higher to 1,398p after the defence sector supplier said annual revenue and profit would come in ahead of market expectations following strong order intake and record backlog growth.
The technology group, which designs and supplies products and services for the global defence and security markets, said revenue for the year to 30 April reached £303 million, up 12%, while adjusted operating profit was up just over 30% to around £36 million. Both were ahead of the average analyst forecast.
Order intake rose to about £313 million from £284 million a year earlier, exceeding annual revenue for the second consecutive year and lifting the closing order book to a record £620 million.
Cohort said the order book provided around 80% cover for current market revenue expectations for the new financial year.
The Communications & Intelligence arm was the main growth driver, with revenue rising to £159 million from £125.4 million, helped by the first full-year contribution from satellite communications terminals maker EM Solutions.
Meanwhile, revenue in the Sensors & Effectors wing was broadly flat at £144 million, with margins affected by continued cautious trading on ELAC Sonar’s Italian contract and the sale of SEA’s transport business last year.
Net cash and other liquid funds at the year-end stood at £2.9 million, down from £5.3 million, though the company said cash performance improved strongly in the second half.
Chief executive Andrew Thomis said the company had “encouraging prospects for further orders” and said the strong balance sheet provided scope for further acquisitions.