Cohort has announced that it will integrate its Systems Consultants Services (SCS) business into other parts of the group. Management believes this will provide better long-term growth prospects. The exceptional cost, which will be incurred in FY17, is estimated at £2m and is expected to result in annual cost savings of c £1.6m. We believe earnings estimates are achievable, but await interim results to confirm mix changes, with no significant change to our fair value estimate anticipated as future cash and earnings benefits offset short-term hits.
