Cohort (CHRT ) reported strong FY24 results, with revenue +11%YoY at £202.5m, which was 8% above our outlook, and (adj.) operating profit of £21.1m +11%YoY (3% above EDE). The closing order book was £518.7m +58%YoY with order intake of £392.1m, +78%YoY, and estimated 95% coverage of our FY25 revenue outlook. The year closed with net cash of £23.1m.
Cohort shares have performed strongly since mid-March, +96%YoY, hitting a high of 860p in a trend which we believe reflects the increased emphasis on defence and national security in the UK and growing prominence of defence-related specialists such as Cohort. Our read-across to the market cap-weighted average of peers leads us to raise our Fair Value to 910p/share.