Slide 1: Results for the Year Ended 30 April 2023
RESULTS FOR THE YEAR ENDED 30 APRIL 2023 Andrew Thomis & Simon Walther 19 July 2023
Slide 2: Highlights
HIGHLIGHTS Record operating profit, revenue and order book. Further progress expected Andrew Thomis, Chief Executive 2
Slide 3: Financial Highlights
Introduction FINANCIAL HIGHLIGHTS REVENUE ADJUSTED OPERATING PROFIT ADJUSTED EPS Record revenue and profit £182.7m £19.1m 36.48p 33% 23% 17% (2022: £137.8m) (2022: £15.5m) (2022: 31.08p) ORDER INTAKE ORDER BOOK REVENUE COVER Record order intake and order book £220.9m £329.1m 80% (2022: £186.4m) (30/
Slide 4: New Reporting Divisions: Clearer and Simpler
Introduction NEW REPORTING DIVISIONS: CLEARER AND SIMPLER Communications and Intelligence REVENUE 86.2 96.5 2022/23 (£m) 9.3 PROFIT 2022/23 (£m) 14.9 Sensors and Effectors 126.7 ORDER BOOK 2022/23 202.4 Communications and (£m) Intelligence Sensors and Effectors 4
Slide 5: Operational Highlights
Introduction OPERATIONAL HIGHLIGHTS Return to profit at Chess Record performance at MCL MASS the largest Sensors and Communications contributor but slightly Steady progress at Effectors and Intelligence behind last year ELAC and SEA Disappointing year at EID 5
Slide 6: Financial Review
FINANCIAL REVIEW Simon Walther, Finance Director 6
Slide 7: Income Statement
Financial Review INCOME STATEMENT Year ended 30 April 2023 2023 2022 Variance £m £m % Revenue 182.7 137.8 32.6% Gross profit 65.0 35.6% 54.9 39.8% Overhead (45.9) (39.4) Adjusted operating profit 19.1 15.5 23.2% KEY NOTES • Record trading performance • Gross margin % lower due to change in mix • Gro
Slide 8: Communications and Intelligence
Divisional Highlights COMMUNICATIONS AND INTELLIGENCE comprising EID, MASS and MCL 2022/23 2021/22 Revenue (£m) 86.2 68.4 Adjusted operating profit (£m) 14.9 12.3 Operating margin 17.3% 18.0% KEY NOTES • Strong performance from the Communications and Intelligence division, driven by significant upli
Slide 9: Sensors and Effectors
Divisional Highlights SENSORS AND EFFECTORS Comprising Chess Dynamics, ELAC Sonar and SEA 2022/23 2021/22 Revenue (£m) 96.5 69.4 Operating profit (£m) 9.3 7.5 Operating margin 9.6% 10.8% KEY NOTES • Sensors and Effectors performed well, with Chess delivering an improved performance • ELAC began work
Slide 10: Net Funds Bridge
Financial Review NET FUNDS BRIDGE +£2.3m -£6.8m Depreciation +£19.1m Working Adjusted Capital Operating -£5.2m Profit Capex +£0.5m -£5.1m Net Purchase of Own Shares Dividends -£0.2m Others +£15.6m 2022/23 Closing Net +£11.0m Funds 2021/22 Opening Net Funds 10
Slide 11: Outlook
OUTLOOK Andrew Thomis, Chief Executive 11
Slide 12: Encouraging Outlook for Growth
Outlook ENCOURAGING OUTLOOK FOR GROWTH Big picture Continued conflict in Central/Eastern Europe SE Asia/Indo Pacific allies facing increased security challenge Domestic markets Export markets UK focused on security challenges from New and existing NATO members China and Russia reacting to Ukraine cr
Slide 13: Investing in Technology for Growth
Outlook INVESTING IN TECHNOLOGY FOR GROWTH 2022/23 spend maintained at over £11m Dismounted Soldier System Integrator Advanced video target tracking Multi Environment Display Underwater spread spectrum acoustic communications Active strategy for value-adding acquisitions Well positioned to meet curr
Slide 14: Record Order Book
Outlook RECORD ORDER BOOK Delivery of the Group’s order book into revenue Communications and Intelligence Sensors and Effectors Total 350 329.1 300 250 202.4 £ MILLIONS 200 Total 142.7 150 Total Total 100 84.5 83.6 Total Total 71.2 Total 65.1 58.2 50.1 126.7 44.8 50 39.4 38.8 32.3 48.1 59.1 39.7 31.
Slide 15: Good Underpinning for Coming Year
Outlook GOOD UNDERPINNING FOR COMING YEAR ORDER BOOK 30 April 2023 To be delivered 30 April Last year's to be £m 2023/24 2022 delivered £m £m £m Communications and Intelligence 126.7 59.1 118.4 58.5 Sensors and Effectors 202.4 83.6 172.6 69.2 329.1 142.7 291.0 127.7 KEY NOTES • Order book at end Jun
Slide 16: Outlook & Summary
OUTLOOK & SUMMARY Record trading performance Record order book and long pipeline of opportunities Well positioned to meet customer needs in growth markets Strong balance sheet for investing in product, technology and targeted acquisitions Further growth expected in 2023/24 Growth to accelerate 2024/
Slide 17: Exciting long-term future as a major independent UK defence technology group
Exciting long-term future as a major independent UK defence technology group offering world-class systems to domestic and export customers alike 17
Slide 18: Questions
QUESTIONS COHORT PLC
Slide 19: Appendix
APPENDIX COHORT PLC
Slide 20: Cohort Business Model
COHORT BUSINESS MODEL Subsidiaries enjoy a significant degree of operational Group operates a light-touch but rigorous financial autonomy in order to develop their potential fully: and strategic control regime: Enables streamlined decision-making and focus on Cost-effective as avoids need for ad
Slide 21: Applying advanced technology to protect and secure
Applying advanced technology to protect and secure We create solutions to keep people safe. Acting with agility to find a better way, make smart decisions and meet customers’ needs. Where independent subsidiaries are free to grow and deepen relationships with the support of a steadying hand. Bringin
Slide 22: Acquisition Strategy
Acquisition Strategy ACQUISITION STRATEGY Continue to see opportunities to accelerate growth by making targeted acquisitions in the UK and overseas Stand-alone acquisitions Bolt-in acquisitions Likely to be operating in defence and To be integrated with an existing group security markets busines
Slide 23: Acquisition Track Record
Acquisition Strategy ACQUISITION TRACK RECORD 2006 2007 2014 2015/16 2018 2020 SEA acquired Disposal of EID acquired for £13.3m Wärtsilä ELAC Nautik for £25m Space Division (80% ownership, balance GmbH acquired for for £6.5m retained by Portuguese €11.3m Government) SCS acquisition helped create the
Slide 24: Communications and Intelligence
Communications and Intelligence The Communication and Intelligence division brings together three of our businesses which have a focus on communications systems, intelligence gathering and analysis, including electronic warfare for mainly defence and security customers. This they provide through bot
Slide 25: Sensors and Effectors
Sensors and Effectors The Sensors and Effectors division brings together three of our businesses with a focus on technology products and systems which enable our customers, primarily in the naval and land domain to detect, acquire, track and respond to threats, whether land, air or sea based. • Ches
Slide 26: Net Cash Flow
Financial Review NET CASH FLOW Year ended 30 April 2022 2023 2022 £m £m Adjusted operating profit 19.1 15.5 Working capital (6.8) 4.2 Depreciation and share based payments 3.6 2.8 Net funds inflow from operations 15.9 22.5 Acquisition of Chess Minority (1.0) - Exceptional items - (0.1) Capital expen
Slide 27: Earnings Per Share
Financial Review EARNINGS PER SHARE • 17% increase in adjusted earnings per share from 23% growth in adjusted operating profit Reconciled as follows: Adjusted Adjusted earnings operating profit per share £m Pence 2022 15.5 31.08 100% owned businesses throughout the year 4.6 9.10 Impact of businesses
Slide 28: Quarterly Profile of Group Revenue
QUARTERLY PROFILE OF GROUP REVENUE 2016/2017 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 Average % % 40.0 35.2 35.0 30.0 25.0 21.8 20.2 20.0 16.6 15.0 10.0 5.0 0.0 Q1 Q2 Q3 Q4 28
Slide 29: Thank You
THANK YOU Cohort plc One Waterside Drive Arlington Business Park Theale Reading RG7 4SW www.cohortplc.com