Cohort (CHRT) investor relations material

Financial performance and shareholder returns

• Achieved record revenue of over £306 million and a 32% increase in operating profit to more than £36 million, with robust demand and an order intake of £314.2 million, resulting in a year-end order book of nearly £620 million and strong revenue visibility out to 2037.

• Dividend increased by 10% to £0.179, continuing an unbroken track record of annual increases since 2006, reflecting confidence in long-term prospects.

• Communications and Intelligence division saw revenue rise 27% to £158.9 million and operating profit up over 50% to £32.4 million, with margin improvement to 20.4%.

• Sensors and Effectors division revenue was flat at £147.5 million, with lower profitability due to the disposal of a high-margin non-core business, but a strong order pipeline is expected to drive future growth.

• Net funds position returned to positive at £2.2 million after significant working capital movements, demonstrating strong underlying cash generation.

Strategic investments and capital allocation

• Invested £60 million organically over five years, including new manufacturing facilities and technology development, and £40 million in acquisitions, expanding into satellite communications and Asia-Pacific markets.

• Plan to generate £140 million in operating cash over the next three years, with £60 million reinvested in organic growth and £30 million returned to shareholders via dividends.

• Remaining £50 million, plus a new bank facility, provides flexibility for further acquisitions and growth initiatives.

Operational initiatives and management changes

• Appointed a new Chief Operating Officer to enhance operational performance, launch cross-group forums, and implement a project life cycle framework for consistent project delivery.

• Investing £15 million to consolidate Chess operations into a single facility, aiming to improve efficiency and margins.