REG - Cohort PLC - Half-year Results <Origin Href="QuoteRef">CHRT.L</Origin> - Part 2
13/12/2017 07:01
- Part 2: For the preceding part double click ID:nRSM1526Za
67.4 60
Portugal defence and security 2.9 6 1.2 2 2.4 2
Export defence customers 9.7 22 11.1 22 32.1 28
Defence and security revenue 38.6 86 44.6 89 101.9 90
Transport 3.1 2.3 5.9
Offshore energy 0.8 1.2 1.9
Other commercial 2.3 1.9 3.0
Non-defence revenue 6.2 14 5.4 11 10.8 10
Total revenue 44.8 100 50.0 100 112.7 100
The defence and security revenue is further analysed into the following:
Six months ended31 October 2017Unaudited Six months ended31 October 2016Unaudited Year ended30 April 2017Audited
£m % £m % £m %
By market segment
Maritime combat systems 12.4 28 13.0 26 32.9 29
C4ISTAR 12.1 27 16.7 33 39.8 35
Cyber security and secure networks 7.4 16 6.4 13 13.7 12
Simulation and training 3.5 8 4.0 8 9.2 8
Research, advice and support 2.3 5 3.6 7 4.9 5
Other 0.9 2 0.9 2 1.4 1
Total defence and security revenue 38.6 86 44.6 89 101.9 90
The Group's total revenue in terms of type of deliverable is analysed as
follows:
Six months ended31 October 2017Unaudited Six months ended31 October 2016Unaudited Year ended30 April 2017Audited
£m % £m % £m %
Product (hardware and/or software) 10.3 23 13.9 28 32.8 29
Customised systems or sub-systems (hardware and/or software) 13.5 30 12.6 25 31.9 28
Services 21.0 47 23.5 47 48.0 43
Total revenue 44.8 100 50.0 100 112.7 100
3. Income tax expense/(credit)
The income tax expense/(credit) comprises:
Six months ended31 October 2017Unaudited£'000 Six months ended31 October 2016Unaudited£'000 Year ended30 April 2017Audited£'000
Current tax: in respect of this period 371 97 1,466
Current tax: in respect of prior periods - - (845)
Portugal corporation tax: in respect of this year 289 310 965
Other foreign corporation tax: in respect of this year - - 13
660 407 1,599
Deferred taxation: in respect of this period (522) (993) (2,798)
Deferred taxation: in respect of prior years - - 55
(522) (993) (2,743)
138 (586) (1,144)
The income tax expense for the six months ended 31 October 2017 is based upon
the anticipated charge for the full year ending 30 April 2018.
4. Earnings per share
The earnings per share are calculated as follows:
Six months ended31 October 2017Unaudited£'000 Six months ended31 October 2016Unaudited£'000 Year ended30 April 2017Audited£'000
Earnings
Basic and diluted earnings/(loss) 580 (1,810) 3,672
Charge/(credit) on marking forward exchange contracts and cash held for the acquisition of EID to market value at the period end/acquisition date (net of income tax) 143 (142) (344)
Exceptional items (net of income tax):
Reorganisation of SCS - 1,840 2,058
Cost on acquisition of EID - 79 80
Cost on acquisition of MCL - - 47
Group's share of amortisation of intangible assets (net of income tax) 1,845 2,443 5,773
Adjusted basic and diluted earnings 2,568 2,410 11,286
Number Number Number
Weighted average number of shares
For the purposes of basic earnings per share 40,718,133 40,260,946 40,400,179
Share options 547,477 601,956 553,515
For the purposes of diluted earnings per share 41,265,610 40,862,902 40,953,694
The weighted average number of ordinary shares for the six months ended 31
October 2017 excludes 193,169 ordinary shares held by the Cohort plc Employee
Benefit Trust (which do not receive a dividend) for the purposes of
calculating earnings per share (six months ended 31 October 2016: 504,844;
year ended 30 April 2017: 315,248).
Six months ended31 October 2017UnauditedPence Six months ended31 October 2016UnauditedPence Year ended30 April 2017AuditedPence
Earnings/(loss) per share
Basic 1.42 (4.50) 9.09
Diluted 1.41 (4.50) 8.97
Adjusted earnings per share
Basic 6.31 5.99 27.93
Diluted 6.22 5.90 27.56
5. Dividends
Six months ended31 October 2017UnauditedPence Six months ended31 October 2016UnauditedPence Year ended30 April 2017AuditedPence
Dividends per share proposed in respect of the period
Interim 2.55 2.20 2.20
Final - - 4.90
The interim dividend for the six months ended 31 October 2017 is 2.55 pence
(six months ended 31 October 2016: 2.20 pence) per ordinary share. This
dividend will be payable on 28 February 2018 to shareholders on the register
at 1 February 2018. The dividend reinvestment plan election deadline is 9
February 2018.
The final dividend charged to the income statement for the year ended 30 April
2017 was 6.30 pence per ordinary share, comprising 2.20 pence of interim
dividend for the six months ended 31 October 2016 and 4.10 pence of final
dividend for the year ended 30 April 2016.
6. Net cash generated from/(used in) operating activities
Six months ended31 October 2017Unaudited£'000 Six months ended31 October 2016Unaudited£'000 Year ended30 April 2017Audited£'000
Profit/(loss) for the period 632 (2,662) 2,108
Adjustments for:
Tax expense/(credit) 138 (586) (1,144)
Depreciation of property, plant and equipment 577 627 1,207
Amortisation of intangible assets 2,656 5,012 11,259
Net finance costs/(income) 31 7 (1)
Share-based payment 100 100 221
Derivative financial instruments and foreign exchange movements 178 (178) (430)
(Decrease)/increase in provisions (675) (292) 297
Operating cash flow before movements in working capital 3,637 2,028 13,517
Increase in inventories (2,101) (2,356) (1,386)
(Increase)/decrease in receivables (1,151) 2,910 (3,002)
Increase/(decrease) in payables 2,818 (5,652) (5,815)
(434) (5,098) (10,203)
Cash generated from/(used in) operations 3,203 (3,070) 3,314
Tax paid (1,220) (1,200) (2,609)
Interest paid (39) (44) (46)
Net cash generated from/(used in) operating activities 1,944 (4,314) 659
7. Acquisition of part of the non-controlling interest in Empresa de
Investigação e Desenvolvimento de Electrónica S.A. (EID)
As announced on 27 November 2017, the Group acquired a further 23.09% of EID
from the non-controlling interest (the Portuguese Government) for E3.97m
(£3.53m). This further acquisition was on the same terms as the initial
56.89% stake in EID, signed 4 August 2015.
The Group now owns 80.0% of EID with the Portuguese Government (through the
Portuguese MOD) owning the remaining 20.0% (non-controlling interest).
On acquiring this additional stake in EID, a shareholder agreement has been
put in place which gives the Portuguese Government similar rights to a
minority shareholder whilst ensuring that Cohort retains day-to-day management
control.
In acquiring the further 23.09% of EID, the Group drew down E3.95m (£3.51m) on
its loan facility.
8. Acquisition of the non-controlling interest in Marlborough Communications
Ltd (MCL)
On 31 January 2017, the Group acquired the non-controlling interest (49.999%)
in MCL. An amount of £2,471,000 was shown as payable at 30 April 2017 to the
former shareholders of MCL. The final amount of £2,529,000 was paid on 21
August 2017 and at the same time the Group drew down £2,000,000 of its loan
facility with the banks, which remained drawn as at 31 October 2017.
Independent review report to Cohort plc
for the six months ended 31 October 2017
Conclusion
We have been engaged by the Company to review the condensed set of financial
statements in the half-yearly report for the six months ended 31 October 2017
which comprises the consolidated income statement, the consolidated statement
of financial position, the consolidated statement of changes in equity, the
consolidated cash flow statement and the related explanatory notes.
Based on our review, nothing has come to our attention that causes us to
believe that the condensed set of financial statements in the half-yearly
report for the six months ended 31 October 2017 is not prepared, in all
material respects, in accordance with the recognition and measurement
requirements of International Financial Reporting Standards (IFRSs) as adopted
by the EU and the AIM Rules.
Scope of review
We conducted our review in accordance with International Standard on Review
Engagements (UK and Ireland) 2410 Review of Interim Financial Information
Performed by the Independent Auditor of the Entity issued by the Auditing
Practices Board for use in the UK. A review of interim financial information
consists of making enquiries, primarily of persons responsible for financial
and accounting matters, and applying analytical and other review procedures.
We read the other information contained in the half-yearly report and consider
whether it contains any apparent misstatements or material inconsistencies
with the information in the condensed set of financial statements.
A review is substantially less in scope than an audit conducted in accordance
with International Standards on Auditing (UK) and consequently does not enable
us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit
opinion.
Directors' responsibilities
The half-yearly report is the responsibility of, and has been approved by, the
Directors. The Directors are responsible for preparing the half-yearly report
in accordance with the AIM Rules.
The annual financial statements of the Group are prepared in accordance with
IFRSs as adopted by the EU. The Directors are responsible for preparing the
condensed set of financial statements included in the half-yearly financial
report in accordance with the recognition and measurement requirements of
IFRSs as adopted by the EU.
Our responsibility
Our responsibility is to express to the company a conclusion on the condensed
set of financial statements in the half-yearly report based on our review.
The purpose of our review work and to whom we owe our responsibilities
This report is made solely to the Company in accordance with the terms of our
engagement. Our review has been undertaken so that we might state to the
Company those matters we are required to state to it in this report and for no
other purpose. To the fullest extent permitted by law, we do not accept or
assume responsibility to anyone other than the Company for our review work,
for this report, or for the conclusions we have reached.
Andrew Campbell-Orde for and on behalf of KPMG LLP Chartered Accountants
Arlington Business Park
Theale
Reading RG7 4SD
13 December 2017
This information is provided by RNS
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