Cohort has won a €140.7m contract for its German subsidiary ELAC to supply sonar systems for Poland’s new submarine fleet, one of the technology group’s larger deals to date.
ELAC, part of its Sensors and Effectors division, will work with Sweden’s Saab to deliver integrated sonar systems for the Polish Orka submarine programme.
Work begins immediately, with deliveries extending into the mid-2030s. Cohort said the contract, together with other recent wins, should enhance adjusted earnings per share from next year onwards.
The award builds on a record year for the group. In its latest full-year results, Cohort reported adjusted operating profit of £36.3m, up from £27.5m, on revenue of £306.4m, with the net margin widening to 11.8% from 10.2%.
Adjusted earnings per share rose 14%, and order intake climbed 10% to £314.2m, again outstripping revenue and lifting the order book to a record £618.8m, with deliveries stretching out to 2037.
The dividend was raised 10%, extending a run of annual increases since the group floated in 2006.
Andy Thomis, Cohort Chief Executive, said: “This important order confirms ELAC SONAR’s position as a world-leading provider of advanced digital sonar systems for submarines.
“We are pleased to have established this important collaboration with Saab whose A26 submarine has been selected by the Polish Navy. We will work together closely to ensure that these advanced vessels are provided with cutting-edge active and passive sonar systems, creating a world-class underwater capability that will make a major contribution to security in the Baltic Sea region.”