Cohort : AGM Statement

16 September 2014                                                                                                                                                                 

COHORT PLC ("Cohort")

AGM Statement & First Quarter Update  

Cohort, the independent technology group, is today holding its Annual General Meeting.  The Chairman, Nick Prest, will make the following remarks to the meeting:

"Cohort again improved its performance last year, achieving an 11% increase in adjusted operating profit to £8.2m. Both SCS and SEA strongly improved their performance with MASS remaining the largest contributor to the Group's profitability. At the year end, net funds were £16.3m.  The Group's order book remained strong at £82m, with around 58% of externally forecast 2014/15 revenue underpinned by customer orders a similar percentage to last year.

"In line with our stated strategy, on 9th July 2014 we acquired a controlling interest in Marlborough Communications Limited (MCL), a supplier of advanced electronic communications and surveillance technology, for an initial cash consideration of £6.0m.  As indicated at the time, this acquisition strengthens and broadens the Group's portfolio and is expected to be immediately earnings enhancing.  We see a number of further opportunities to acquire complementary businesses.

"We have continued to improve our order book position in the early months of the current financial year and the Group's order book has increased to £89m as at 31st August including the £5.4m acquired with the MCL business.

"In aggregate, these orders have improved our revenue visibility for the current year. Beyond these successes we continue to see good domestic and export opportunities, though the timing of the latter is always hard to predict.

"As expected, the Group's year end peak working capital has mostly unwound in the first few months of this year and the Group cash at 31st August stood at over £14m after payment of the £6.0m initial consideration for the MCL transaction.

"Overall, Cohort's trading, order intake and prospects at this early stage of the year are consistent with making further progress in 2014/15".

Ends

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NOTES TO EDITORS

Cohort plc

Cohort is an independent technology group working primarily for defence (air, land and sea), wider government and industry clients, through four market-facing subsidiary companies:

MASS - a specialist systems house with considerable experience in the defence market and a focus on electronic warfare operational support and secure information systems. Based in Cambridgeshire, MASS was acquired by Cohort in August 2006;

MCL - an expert in electronic and surveillance technology design and manufacturing, product and in the field support and training for a range of specialist UK end users, including the MOD and other governmental agencies. Based in Surrey, MCL has been part of the Group since July 2014;

SCS - a defence technical advisory business, combining technical expertise with practical experience and domain knowledge. Owned by Cohort since flotation in March 2006;

SEA - an advanced surveillance systems and software house with hardware development capability operating in the defence and transport market sectors. Acquired by Cohort in October 2007.

Cohort was admitted to London's Alternative Investment Market in March 2006. It has its headquarters in Berkshire and employs in total around 500 core staff there and at its other operating company sites in Bristol, Cambridgeshire, Lincolnshire, Somerset and Surrey.