Cohort (LON:CHRT) shares rose more than 12% on Wednesday after the British defence technology specialist published final results for the financial year ended April 30. The company reported adjusted operating profit of around £36 million and revenue of £303 million, each exceeding analysts' consensus figures cited in Cohort's regulatory filing.
Analysts had expected revenue of £293.9 million and adjusted operating profit of £34.7 million. Using those consensus numbers, Cohort's reported revenue exceeded expectations by 3.1% and its adjusted operating profit beat by 3.7%.
Orders, backlog and coverage
The group's closing order book reached a record £620 million, up from £615 million at April 30, 2025. Management said this provided roughly 80% cover of current market revenue expectations for the 2026-27 financial year, compared with 78% cover in the prior year and a five-year average of 72%.
Order intake for the year was approximately £313 million, higher than the prior year's £284 million. RBC analyst Ben Pfannes-Varrow noted that second-half intake of £191 million ran 31% ahead of the same period a year earlier.
Division-level performance and margins
The Communications and Intelligence division produced around £163 million of revenue and delivered a net margin of about 20%, up from 16.8% in 2025. That performance incorporated a full-year contribution from EM Solutions, which Cohort acquired in January 2025.
By contrast, the Sensors and Effectors division reported a net margin of around 7%, down from 8.6% in 2025. The company attributed the margin pressure to ongoing strain on a contract and to the sale of SEA's high-margin transport business in June 2025.
Liquidity, financing and timing of receipts
Cohort closed the year with net funds of £2.9 million, below the group's own guidance range of £10 million to £15 million and down from £5.3 million a year earlier. The company said that receipts of over £6 million slipped into the first quarter of the 2026/27 financial year and were received in May 2026.
During the period the company also agreed a new five-year bank facility for £175 million.
Management comment and analyst view
Chief executive Andrew Thomis said: "Cohort performed strongly in 2025/26, exceeding market expectations. Following another year of strong order intake, our closing order book has reached a new record level, and we have encouraging prospects for further orders."
He added: "The high level of order cover provides confidence in a strong 2026/27 financial year."
RBC Capital Markets retained an "outperform" rating and a price target of 1,740 pence. The RBC note cited consensus forecasts for 2026-27 revenue of £317 million, adjusted EBIT of £41.1 million and adjusted earnings per share of 65.17 pence.
This set of results combines revenue and profit beats with a record order backlog and a new financing facility, while highlighting near-term liquidity slippage and division-level margin divergence driven by an acquisition and a divestment. Investors reacted positively to the top-line and margin beats, balanced by the lower-than-guided closing net funds figure.