$CHRT (-3,01 %) Sector: Defense / Communication / Cybersecurity
ISIN: GB00B0YD2B94
Market cap. (July 2025): ~£350m
Stock exchange: London AIM
Dividend yield: ~1.8%
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Short profile
Cohort PLC is a UK defence company providing specialist military technologies and services through six subsidiaries.
The company supplies primarily to NATO countries and focuses on:
- Electronic warfare
- Secure communications (ship, air, ground)
- Cyber security solutions
- AI-based sensor systems
- Military simulation & training systems
Cohort is not a traditional weapons manufacturer, but a system integrator and electronics specialist with a high level of expertise.
Investment Case
✅ Global armaments boom: NATO countries increase defense spending → Increased predictability for suppliers like Cohort.
✅ Record order backlog: with £615 M, almost 2 years of sales are pre-financed
✅ Strong H1 FY2025:
- Sales +25%, EBIT +69% - operational strength already visible in the current year.
✅ Modern defense technologies: Focus on communication, AI & cyber security - strong demand, scalable.
✅ Solid balance sheet: acquisition (EM Solutions) was paid for from cash, debt ratio remains low.
✅ Moderate valuation:
- P/E ratio 2025e ~14
- EV/EBIT ~13
- Dividend yield: ~1.8%, rising
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Risks
- Strong dependence on government contracts
- Delays in approvals/tenders possible
- Limited liquidity (small cap, low trading volume)
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Conclusion
Cohort PLC is a defensive growth stock from the defense sector with strong niche positioning.
Ideal for investors who are looking for:
- Predictability,
- cash flows,
- and technology-driven growth - without the volatility of traditional defense stocks.
