11 October 2016
COHORT PLC ("Cohort")
Reorganisation at SCS
Cohort plc, the independent technology business, today announces a planned reorganisation of its subsidiary company Systems Consultants Services Ltd (SCS). This follows increased challenges in SCS's markets, further to those noted in the Group's AGM statement in September.
The intention is to integrate SCS's Air Systems and Capability Development divisions into Cohort's subsidiary Systems Engineering & Assessment Ltd (SEA), and its Training Support and Information and Communications Systems divisions into Cohort's subsidiary MASS Consultants Limited (MASS). These changes would have an impact on SCS's requirement for central administrative services, and are subject to consultation.
As a result of the integration, it is envisaged that SCS will no longer operate as a standalone operating subsidiary. We expect the new reporting structure for the Group to be in place from 1 December 2016.
The exceptional cost, which will be incurred in the current financial year, associated with the reorganisation is estimated at £2m and it is expected to result in a net annual cost saving of approximately £1.6m
Andrew Thomis, Chief Executive of Cohort plc, said:
"After careful consideration, we believe integrating SCS's operations with two of our other businesses is in the best interests of our long-term growth prospects. As noted recently, our order book and near-term prospects provide a good base for future progress."
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This announcement includes inside information.
For further information, please contact:
Cohort plc |
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0118 909 0390 |
Andrew Thomis, Chief Executive
Simon Walther, Finance Director |
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Investec Bank plc |
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020 7597 5970 |
Keith Anderson / Daniel Adams |
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MHP Communications |
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020 3128 8100 |
Reg Hoare / Jamie Ricketts / Ollie Hoare |
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NOTES TO EDITORS
Cohort plc
Cohort is an independent technology group working primarily for defence (air, land and sea), wider government and industry clients, through five market-facing subsidiary companies:
MASS - a specialist systems house with a focus on electronic warfare operational support, cyber defence and secure information systems. Based in Cambridgeshire, MASS was acquired by Cohort in August 2006;
MCL - an expert in sourcing, design and integration of surveillance and other electronic systems, as well as field support and training for the UK MOD and other government agencies. Based in Surrey, MCL has been part of the Group since July 2014;
SCS - a defence technical advisory business, providing a range of services, including independent technical evaluation of military aircraft safety, and design and delivery of large and small scale military training exercises. Owned by Cohort since flotation in March 2006;
SEA - an advanced systems and software business operating in the defence (naval systems, simulation, training and technology research), transport and offshore energy market sectors. Acquired by Cohort in October 2007.
EID - a Portugal based supplier of advanced electronics, communications and command and control products and systems for the global defence market, in which Cohort acquired a majority stake in June 2016.
Cohort was admitted to London's Alternative Investment Market in March 2006. It has its headquarters in Berkshire and employs in total around 800 core staff there and at its other operating company sites in Bristol, Cambridgeshire, Devon, Lincolnshire, Somerset, Surrey, Scotland and Portugal.
