Cohort stock leaps on annual results beat, upbeat earnings outlook

Published 16/07/2025, 08:54
© Reuters.

Investing.com -- Shares in Cohort (LON:CHRT) jumped 9% in London trading Wednesday after the company reported better-than-expected earnings and revenue for the full-year 2025 (FY25).

The British technology group reported a revenue of £270 million, above the consensus of £245 million.

Adjusted earnings per share (EPS) came in at 54.44p, around 18% ahead of the 46.1p forecast, largely due to a lower tax charge.

Adjusted EBIT was broadly in line at £27.5 million.

The order book rose 19% year-on-year to £616 million, equivalent to 2.3 times annual sales—well above the long-term average of 1.6x. Order intake for the year totaled £285 million, up 12% excluding a large Royal Navy award.

Order cover improved to 85%, compared to 79% at the end of FY24.

"Encouraging to see that order cover has increased to 85%, up from 79% at year-end (30 April)," said RBC Capital Markets analyst Ben Pfannes-Varrow in a note. 

"Order cover remains well above long-term averages, with scope for continued upgrades on incremental order wins, stronger execution and optionality from M&A," he added. 

Looking ahead, sales and adjusted EBIT guidance for FY26 remain unchanged, despite the disposal of a small transport unit.

However, adjusted EPS is expected to come in ahead of previous expectations, again supported by a lower tax rate. Cohort continues to see a strong pipeline, with the potential for around 10% earnings growth over the next two years.

Net debt is forecast to be between £10 million and £15 million in FY26.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.