I've made my point above and let me add further to the...

I've made my point above and let me add further to the conundrum.

On April 14th 2024, EOS released a price sensitive announcement to market which outlined and stated the following;

"EOS diversifies revenue base with new contracts...EM Solutions secures $19m of new orders." EOS went on to state the following in support of this announcement "These orders are expected to support the continued growth of EM Solutions in 2024 and beyond". How can a company speak of diversification and future growth of a business sector and then sell it, only to commit to a super competitive market where contracts are lumpier than humps on a camels back?

On December 1st, 2023 EOS announced the following with respect to their revenue outlook;

"Ongoing work by EM Solutions to deliver to customers...contract to supply terminals to Royal Australian Navy...and is for up to for A$202m...mean Q4 2023 revenue will exceed EOS previous expectations." Further to the above statement as provided by the company, on 19th May 2023 - EOS blew it's own trumpet by stating that;

"EM Solutions Delivers world leading RF and optical space communications technology...(with) key customers in Australia and a growing presence in the European market". The contract value of up to A$202.2m...The contract schedule extends for seven years from 2023 to final acceptance in 2030".

It is my understanding that the Royal Australian Navy contracts were front loaded in terms of contractual payments. But how much is EOS giving up?

Okay, most people seem to love the deal. There's no doubt that the big dollars is in their defence segment. There's been very little evidence of anything material on the horizon.
-IFV Land 400?
-2 x Ukrainian contracts?
-Directed energy contracts pushed out from 2 x signings later this year...to 1 x signing later this year and 1 x signing next year...to 1 x signing early next year and the other one...well...

And this from Cohort PLC;

"The proposed acquisition of EM Solutions aligns with our strategy to accelerate growth by making targeted acquisitions in the UK and overseas. Australia is an increasingly important strategic region, reflecting the increased security challenges in Southeast Asia and the Indo Pacific, and the creation of the AUKUS alliance.

"EM Solutions provides access to the fast-growing satellite communications market, further broadening the Group’s strong existing naval systems service offering, whilst bringing new customers and enhancing our position in the UK, NATO Europe, Asia and South America.

"This is our largest acquisition to date, representing Cohort’s seventh standalone business. We are looking forward to welcoming the EM Solutions team to Cohort and working together to realise the multiple growth opportunities that this transaction affords."

Will it be a case of win-win, or just grin and bear it?