Cohort’s announcement that its MCL subsidiary has been awarded an £11.2m MoD contract for tactical hearing protection is a clear signal of the inherent potential in the acquired business as part of the larger Cohort group. With the initial contract scheduled over the next four years and a further three-year option, we are maintaining FY16 forecasts during ramp-up and raising our FY17 EPS forecasts by c 2% to 26.2p. With continued growth potential across the group, our fair value increases to 395p/share.
