CHRT

Cohort PLC

Industrial Goods and Services First-pass screen £573m

400/1000 Overall fit

AI beneficiary 35% 30

Operating leverage 25% 52

Valuation 25% 30

Downside protection 15% 58

First-pass take

Cohort is a mid-tier UK defence contractor with record revenue (£270m) and multi-year order book (£616m extending to 2037, providing good visibility). However, lacks AI exposure—growth driven by geopolitical tensions and NATO spending. Margins fell 20bp (10.4% to 10.2%) despite 33% revenue growth, indicating no current operating leverage. Customer concentration risk with 50% revenue from UK MOD. Post-acquisition leverage elevated (net funds fell from £23m to £5.3m). Valuation unassessable without share price.

Flags

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