Thursday 23 May 2024 8:28 am
Defence technology company Cohort received record orders last year, driven by ongoing conflicts in Ukraine and the Middle East.
The firm, which owns SEA and surveillance business Chess, closed the year with orders worth £518m, up 80 per cent from £329m in 2022.
Around £130m of those were from the Royal Navy, which contracted the company to provide a trainable decoy launcher to improve ships’ defensive capabilities.
Richard Flitton, managing director of SEA, said: “The conflict in Ukraine, and investment by some countries in advanced missile technology, has underlined the importance of defence against sophisticated anti-ship threats.
“Ancilia has generated considerable interest from overseas customers, and this contract award will boost its visibility still further.
“We estimate that our addressable market for systems of this kind in the coming years is at least £250m.
“The win will sustain employment for 150 professional and skilled staff in North Devon, and further success in export markets will generate new employment opportunities and economic benefits in the region and in the UK more widely.”
But while the contract delivered a welcome boost to Cohort’s bottom line, the firm said overall MOD spending was down in 2023, due to contract delays with Portugal.
The firm said this was offset by strong demand for its sensors division.
Net funds were also up, due in part to bad weather conditions delaying the construction of the company’s new warehouse facility in Germany.
Andrew Thomis, chief executive of Cohort, added: “Cohort’s performance was slightly ahead of our previous expectations for the year with growth in revenue and profits.
“Following strong order intake, we have a record closing order book with encouraging prospects for further orders.
“Our strong closing net funds position provides a robust platform from which to invest in the business and, potentially, acquisitions. We expect to continue our organic growth in 2024/25 and beyond.”