Cohort Plc · LSE:CHRT
Cohort — H1 FY2025 Earnings Presentation
22 slides from Cohort's earnings presentation, Dec 11, 2024
Slide 1: Half year results for the six months ended 31 October 2024
Delivering trusted and valued technology innovation that protects us all. Half year results for the six months ended 31 October 2024 Andrew Thomis and Simon Walther 11 December 2024
Slide 2: Interim Results Highlights
INTERIM RESULTS HIGHLIGHTS Andrew Thomis, Chief Executive
Slide 3: Investment Case
INVESTMENT CASE • Group of six technology businesses focused on land and maritime defence systems • Business model underpins competitive advantage • Growing organically – recently announced acquisition of EM Solutions will accelerate • Geopolitics driving strong demand – evidenced by transformative
Slide 4: Group: Financial Highlights
GROUP: FINANCIAL HIGHLIGHTS REVENUE ADJUSTED OPERATING PROFIT ADJUSTED EPS Strong growth in revenue and profit £118.2m £10.1m 20.00p +25% +69% +93% (2023: £94.3m) (2023: £6.0m) (2023: 10.36p) ORDER INTAKE ORDER BOOK REVENUE COVER Record closing order book, visibility out to mid 2030s, more £139.2m £
Slide 5: Divisional Highlights
DIVISIONAL HIGHLIGHTS Increased revenue and trading profit in both divisions Strong demand from urgent SEA making good progress on Ancilia operational requirements at MCL – Critical Design Review in March Sensors an dE f fec Italian submarine sonar tor moving into production at s MASS delivering wel
Slide 6: Financial Review
FINANCIAL REVIEW Simon Walther, Finance Director
Slide 7: Income Statement
Financial Review INCOME STATEMENT Six months Six months Variance ended 31 ended 31 % Oct 2024 Oct 2023 £m £m Revenue 118.2 94.3 +25% Gross profit 38.2 32.1 Overhead (28.1) (25.2) Adjusted operating profit 10.1 6.0 +69% KEY NOTES • Record first half trading performance with higher revenue and adjuste
Slide 8: Operational Performance
OPERATIONAL PERFORMANCE Communications and Intelligence • Revenue of £55.2m (2023: £43.9m) • Improved trading profit of £8.5m (2023: £6.0m) • Order book increased to £134.3m (30 April 2024: £108.0m) • Operating margin 15.4% (2023: 13.7%) Sensors and Effectors • Revenue of £64.2m (2023: £51.0m) • Mor
Slide 9: Net Funds Flow
Financial Review NET FUNDS FLOW Six months ended 31 Six months ended Oct 2024 31 Oct 2023 £m £m Adjusted operating profit 10.1 6.0 Working capital, depreciation 23.3 (3.2) Net funds inflow/(outflow) from operations 33.4 (9.2) Acquisitions (3.0) - Capital expenditure (6.7) (2.7) Net purchase of own s
Slide 10: Outlook
OUTLOOK Andrew Thomis, Chief Executive
Slide 11: Outlook for Growth
Outlook OUTLOOK FOR GROWTH Big picture Continued conflict in Central/Eastern Europe, renewed conflict in Middle East SE Asia/Indo-Pacific allies continue to invest in security and defence Export markets Domestic markets Operations • New and existing NATO members • UK defence review underway to • Inv
Slide 12: ELAC SONAR's New Facility in Kiel, Germany
ELAC SONAR’s New Facility in Kiel, Germany December 2023 12
Slide 13: Progress Update, December 2024
PROGRESS UPDATE, 10 DECEMBER 2024 13
Slide 14: Opportunity Pipeline
OPPORTUNITY PIPELINE Italy Boat 4; German Navy frigate upgrade; submarine programmes in Europe, Canada and Asia Communications and networks for Portuguese Offshore Patrol Vessels; promising co-operation with Damen Multiple opportunities for KraitSense; communications for SSN AUKUS; partnership with
Slide 15: Record Order Book
RECORD ORDER BOOK DELIVERY OF THE GROUP'S ORDER BOOK INTO REVENUE Communications and Intelligence Sensors and Effectors 541.1 406.8 £ MILLIONS 198.9 121.3 133.1 87.8 184.8 69.3 92.0 134.3 60.7 52.0 41.1 14.1 27.1 31 OCTOBER 2024 H2 2024/25 2025/26 2026/27 LATER YEARS 15
Slide 16: Strong Revenue Visibility
STRONG REVENUE VISIBILITY ORDER BOOK 31 October 2024 To be delivered H2 31 October 2023 To be delivered H2 £m 2024/25 £m 2023/24 £m £m Communications and Intelligence 134.3 52.0 108.3 30.5 Sensors and Effectors 406.8 69.3 245.6 60.3 541.1 121.3 353.9 90.8 KEY NOTES • >99% of 2024/25 consensus revenu
Slide 17: Compelling Proposed Acquisition – EM Solutions
COMPELLING PROPOSED ACQUISITION – EM SOLUTIONS Enhance and diversify the Group’s proposition with a complementary defence communication offering Gain exposure to the growing satellite communications market Further broaden the Group’s naval systems offering Accelerate EM Solutions’ growth with enhanc
Slide 18: Summary & Outlook
SUMMARY & OUTLOOK Continued growth in revenue and profit, on track to achieve full year expectations Dividend increased 10% once again Materially accretive acquisition of EM Solutions to accelerate growth and give access to new markets Strong balance sheet for investing in growth opportunities Recor
Slide 19: Questions
QUESTIONS COHORT PLC THE INDEPENDENT TECHNOLOGY GROUP 19
Slide 20: Appendices
APPENDICES COHORT PLC THE INDEPENDENT TECHNOLOGY GROUP 20
Slide 21: Earnings Per Share
Financial Review EARNINGS PER SHARE • 93% increase in adjusted earnings per share from 69% growth in adjusted operating profit Reconciled as follows: Adjusted Adjusted earnings operating profit per share £m Pence Six months ended 31 Oct 2023 6.0 10.36 100% owned businesses throughout the year 4.9 9.
Slide 22: Order Book Movement
ORDER BOOK MOVEMENT MOVEMENT OF GROUP'S ORDER BOOK £ MILLIONS 22