Slide 1: Delivering trusted and valued technology innovation that protects us all
Delivering trusted and valued technology innovation that protects us all. Results for the year ended 30 April 2024 Andrew Thomis and Simon Walther 17 July 2024
Slide 2: Group: Financial Highlights
Group: Financial Highlights REVENUE ADJUSTED OPERATING PROFIT ADJUSTED EPS Strong growth in revenue and profit, exceeding £202.5m £21.1m 42.89p expectations +11% +11% +18% (2023: £182.7m) (2023: £19.1m) (2023: 36.48p) ORDER INTAKE ORDER BOOK REVENUE COVER Record closing order book, visibility out to
Slide 3: Operational Highlights
Operational Highlights Robust growth at Sensors and Effectors. Communications and Intelligence slightly behind last year. Progress towards Demand strong for Chess significant orders finally and SEA products achieved at EID Positive results from the MCL back to a more operational improvements normal
Slide 4: Strategic Position Further Improved
Strategic Position Further Improved 1 2 3 4 5 Robust Investing in Record order Encouraging Significant demand technology for book and start to 2024/25, further progress picture. growth – R&D increased growth targeted for expenditure longevity. expectations 2025/26 and up 26%. maintained with beyond.
Slide 5: Financial Review
Financial Review Simon Walther, Finance Director 5
Slide 6: Income Statement
Financial Review Income Statement Year ended 30 April 2024 2024 2023 Variance £m £m % Revenue 202.5 182.7 11% Gross profit 76.3 37.7% 65.0 35.6% Overhead (55.2) (45.9) Adjusted operating profit 21.1 19.1 11% o Record trading performance. o As expected, gross margin improved. o Increased overhead as
Slide 7: Sensors and Effectors
Divisional Highlights Sensors and Effectors 2023/24 2022/23 Revenue (£m) 119.6 96.5 Adjusted operating profit (£m) 12.8 9.3 Operating margin 10.7% 9.6% o Higher division revenue driven by SEA, which also had record order intake. o Improved operating profit was mostly due to Chess, with past difficul
Slide 8: Communications and Intelligence
Divisional Highlights Communications and Intelligence 2023/24 2022/23 Revenue (£m) 82.9 86.2 Adjusted operating profit (£m) 12.8 14.9 Operating margin 15.5% 17.3% o MCL back to more normal performance after exceptional 2022/23. o MASS delivered a stronger result than last year. o EID faced delays an
Slide 9: Progress on ELAC SONAR's New Facility in Kiel, Germany December 2023
Progress on ELAC SONAR’s New Facility in Kiel, Germany December 2023 9
Slide 10: Progress on ELAC SONAR's New Facility in Kiel, Germany July 2024
Progress on ELAC SONAR’s New Facility in Kiel, Germany July 2024 10
Slide 11: Net Funds Bridge 2023/24
Financial Review Net Funds Bridge 2023/24 Depreciation Working Adjusted Capital Operating Profit Capex Dividends Others Opening Net Closing Funds Net Funds 2024/25 2025/26 2026/27 Capex £17m £7m £5m 11
Slide 12: Outlook
Outlook Andrew Thomis, Chief Executive 12
Slide 13: Robust Demand Picture
Outlook Robust Demand Picture Big picture o Continued conflict in Central/Eastern Europe o SE Asia/Indo Pacific allies facing increased security challenge Domestic markets Export markets o UK remains our most important domestic o New and existing NATO members reacting to market – even more so with A
Slide 14: Investing In Technology For Growth
Outlook Investing In Technology For Growth 26% increase in research and development with spend now over £14.5m. Countering drone threats Battlefield surveillance and target tracking Improved range and accuracy of submarine tracking Sensors for uncrewed systems Enhancing naval vessel survivability We
Slide 15: Order Book Run-off Comparison
Outlook Order Book Run-off Comparison At 30 April 2023 At 30 April 2024 Communications and Intelligence Sensors and Effectors Communications and Intelligence Sensors and Effectors 600.0 600.0 Total 518.7 500.0 500.0 400.0 400.0 Total 329.1 £ MILLIONS £ MILLIONS 410.7 300.0 300.0 Total Total 184.1 20
Slide 16: Good Underpinning for Coming Year
Outlook Good Underpinning for Coming Year Order Book 30 April 2024 To be delivered 30 April Last year's to be £m 2024/25 2023 delivered £m £m £m Communications and Intelligence 108.0 63.2 126.7 59.1 Sensors and Effectors 410.7 120.9 202.4 83.6 518.7 184.1 329.1 142.7 o Over £70m of new order wins si
Slide 17: Summary and Outlook
Summary and Outlook Continued growth in revenue and profit Record order book and strong pipeline of opportunities Strong balance sheet for investing in product development, capacity and targeted acquisitions Encouraging start to 2024/25 – growth expectations maintained with upside from ITS Significa
Slide 18: Another step towards our exciting long-term future
Another step towards our exciting long-term future as a major independent UK defence technology group offering world-class systems to domestic and export customers alike 18
Slide 19: Questions
Questions COHORT PLC
Slide 20: Appendix
Appendix COHORT PLC
Slide 21: Cohort Business Model
Cohort Business Model Subsidiaries enjoy a significant degree of Group operates a light-touch but rigorous operational autonomy in order to develop their financial and strategic control regime: potential fully: Cost-effective as avoids need for additional Enables streamlined decision-making and
Slide 22: 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 23: 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 24: Corporate History
Corporate History 2006 2007 2010 2014 Cohort plc SEA acquired for Abacus EW Space division founded £25m acquired disposal £6.5m Listed on LSE (fully integrated within MASS) J+S acquired for AIM £12m MASS acquired (fully integrated within for £13m SEA) SCS acquisition 50% MCL acquired Helped create t
Slide 25: Divisional Breakdown
Divisional Breakdown Communications and Intelligence Sensors and Effectors Advanced Advanced digital Designing, sourcing Surveillance, fire Supplying global Advanced defence and communications services that manage and supporting control, and navies with innovative, transport management systems for t
Slide 26: Net Cash Flow
Financial Review Net Cash Flow Year ended 30 April 2024 2024 2023 £m £m Adjusted operating profit 21.1 19.1 Working capital (2.3) (7.1) Depreciation and share based payments 3.8 3.9 Net funds inflow from operations 22.6 15.9 Acquisition of Chess minority - (1.0) Capital expenditure (6.7) (5.2) Net (
Slide 27: Earnings Per Share
Financial Review Earnings Per Share • 18% increase in adjusted earnings per share from 11% growth in adjusted operating profit Reconciled as follows: Adjusted Adjusted earnings per operating profit share £m Pence 2023 19.1 36.48 100% owned businesses throughout the year 1.4 3.02 Impact of businesses
Slide 28: Quarterly Profile Of Group Revenue
Quarterly Profile Of Group Revenue 2017/2018 2018/2019 2019/2020 2020/2021 2021/2022 2022/2023 2023/2024 Average % % 35.0 31.8 30.0 25.0 20.1 18.4 20.0 15.7 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 29