Defence technical services business Cohort, recently recommended by Growth Company Investor at 161.5p, has clinched a £9m research programme to support the UK’s armed forces.

Its SEA arm has been awarded a framework contract by the Ministry of Defence (MoD) worth £9m over three years and involving work for an MoD programme aimed at developing new techniques, processes and technology to support expeditionary operations by the UK armed forces in places such as Iraq and Afghanistan.

According to chairman Nick Prest, the contract award ‘demonstrates the MOD’s confidence in SEA to undertake these important research programmes’. SEA, the second AIM acquisition from Cohort, which floated in March 2006 to consolidate a large and fragmented market, is a specialist developer of electronic surveillance systems for the defence, space and offshore sectors and recently cheered its new owners with the winning of more than £5.5m worth of contracts for two transport sector clients, Network Rail and Transport for London.

Cash generative, profitable and already dividend paying, Cohort’s other businesses are Oxfordshire-based SCS, a fast-growing technical services provider whose key client is the MOD, and MASS – the company’s maiden AIM acquisition – an independent systems house focused on the defence sector.

Cohort is a well-managed concern with a solid forward order book (valued at £56.1m at the half year). Based on 2008 forecasts before the latest contract news – turnover of £57.4m, profits of £5.6m and 11.9p of earnings – Cohort commands an inexpensive p/e rating of 14 times and should have further to go. Hold.

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Cohort	AIM	£84.6m	209.00p	0.00p
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