Cohort profits rise, wins UK defence contract

27th Jun 2011 09:54

A rise in profits and a contract win helped Cohort narrow what its chief executive sees as the unjustified gap between the share price and the real value of the defence technology group.Pre-tax profits excluding exceptional items in the year to 30 April climbed to £4.9m from £4m the previous year even as revenues slipped to £65.1m from £78.1m. The full-year dividend was lifted to 2.4p from 2.05p.Cohort, which makes systems and software for and provides advice and services to the defence and other sectors, said it exited some unprofitable markets during the period."Cohort's businesses have strong market positions and the Group has a healthy cash position," said chairman Nick Prest. "There is a gap between the market capitalisation of Cohort and the board's view of the aggregate value of Cohort's underlying businesses and the Board's priority is to close this gap."Cohort also announced that it has been awarded multi-million pound contract to help upgrade Britain's Defence Electronic Warfare Centre.At 10:25am shares in Cohort were up by 12.4% at 8p.---RG