Fourth boat German subsidiary ELAC has been awarded a contract amendment worth €16.4m following activation of the contractual option for an additional unit. ELAC will deliver the sonar system for an additional unit of a new build submarine program for the Italian Navy. It brings the total value, first awarded in 2021, to over €100m for four submarines. Enhances visibility No change to estimates (the fourth vessel is due for delivery in 2032), but this award enhances future revenue visibility and again highlights ELAC as a leader in its area. Management believe that ELAC’s Sphere™ digital hydroacoustic technology provides the most advanced and effective sonars available worldwide, enabling a generational leap in underwater battlespace performance. ELAC benefits from being close to the German Naval HQ, the NATO Confined & Shallow Water CoE and Kiel University. Overall, Cohort is well placed to benefit from a decade of elevated Naval spending by European and Asian customers. There are few ways for investors to gain exposure to this. As a reminder of H1 progress, it was announced last month that Adj EBIT increased 69% to £10.1m, implying a 59% H2 bias on estimates pre the EMS acquisition, which compared to 72% last year. Order intake grew 17% to £139m, driven by the Communications and Intelligence division and represented 1.2x revenue. The order book stood at £541m, from which H2 revenue cover is 99%.