Cohort PLC Reorganisation at SCS (1677M)
11 October 2016 - 7:00AM
UK Regulatory
TIDMCHRT
RNS Number : 1677M
Cohort PLC
11 October 2016
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
GBP2m and it is expected to result in a net annual cost saving of
approximately GBP1.6m
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."
- Ends -
This announcement includes inside information.
For further information, please contact:
Cohort plc 0118 909 0390
Andrew Thomis, Chief
Executive
Simon Walther, Finance
Director
Investec Bank plc 020 7597 5970
Keith Anderson / Daniel
Adams
MHP Communications 020 3128 8100
Reg Hoare / Jamie
Ricketts / Ollie Hoare
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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