11 October 2016 – SCS reorgainsation
Cohort has announced a planned reorganisation of its subsidiary company Systems Consultants Services Ltd. This follows increased challenges in SCS’s markets, further to those noted in Cohort’s AGM statement last month. SCS’s Air Systems and Capability Development divisions will be integrated 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 are subject to consultation as they would have an impact on central administrative services at SCS. As a result of the integration, SCS will no longer operate as a standalone operating subsidiary and the new reporting structure will be implemented from 1 December 2016. A £2m exceptional cost is estimated but this will result in a net cost saving of £1.6m per annum. The shares remain a BUY.