Andy Thomis is the CEO of Cohort plc, one of Britain’s more prominent defence industrial groups with expertise and experience across a broad waterfront of defence and security solutions. The Group reported record revenues and earnings this week, with an order book of over £600 million with deliveries stretching out to 2037. In this context, his views and interpretation of the British government’s Defence Investment Plan (DIP), published two weeks ago, is both interesting and topical. Here he shares those views – pragmatic, measured and informed – with publisher Tim Mahon.
DA: So, DIP delivers a measure of certainty. Is it enough?
Thomis: The Defence Investment Plan outlines a clear set of priorities, which gives direction allowing both the MoD and defence companies like Cohort to forecast, prioritise investment and prepare for future demand with much greater confidence. It’s a significant improvement on the period of uncertainty we’ve experienced since last autumn, when the DIP was initially expected to be published.
While it is an important first step, it doesn’t yet deliver the level of funding originally envisaged in the Strategic Defence Review (SDR). The funding profile is slower and more backloaded than the SDR anticipated, so while it provides direction there is still more to do to deal with real and gathering threats that we see today.
Unfortunately, it’s not possible to have full confidence in the DIP until we see full and committed funding in place.
DA: Are we hollowing out core capability in favour of politically ‘feel good’ and potentially popular gesture politics?
Thomis: The DIP contains some genuinely innovative concepts, particularly around areas like the hybrid navy and autonomous systems. These new developments will position the UK Royal Navy as an innovative world leader and support export opportunities in this space.
Conversely, some important capabilities highlighted in the SDR, such as enhancing the Type 45 destroyers with ballistic missile defence capability, don’t appear to be progressing in the way initially outlined. It’s important that innovation complements core military capability and is truly aligned with the threats that the UK is facing, particularly from long-range precision missiles and the increasing use of uncrewed vessels across the air, land and maritime domains.
DA: Where does the UK now stand now vis-a-vis NATO and the rest of the world, do you think? Redeemed? Mildy distrusted?
Thomis: I’d expect our allies will welcome that there is now a clear direction of travel outlined by the DIP which demonstrates intent and provides greater certainty.
Many of our European allies are increasing defence spending very rapidly. Countries such as Germany and Poland are investing at levels that reflect the threats they perceive. Germany is on a clear trajectory to become the European leader in defence capability, a position that, in the past, was occupied by the UK.
The UK’s relative weakness, for instance in its lack of air and missile defence, is clearly visible both to our partners and potential adversaries. This shortfall unfortunately won’t be fully addressed by the DIP.
The UK is the home of one of Europe’s most capable defence industries and a welcome partner in international collaborative projects. Following the DIP, our allies will be interested in seeing similar next steps to industry – how quickly the funding translates into contracts and strategy is turned into capability delivery.
DA: Undertakings are Good Things. Where do you read commitment to them – following through on intent?
Thomis: The publication of the DIP is a positive signal because it moves beyond broad ambition towards a more structured programme of delivery.
The next test will be execution and, ultimately, delivery. The real measure of commitment will be how quickly programmes are translated into funded contracts, how consistently investment is maintained over the coming years and whether industry sees the demand coming through. From our perspective, the important thing is that planning can now begin.
DA: This is, as you have already said, a first step. What is the next one?
Thomis: The immediate next step is turning the DIP into procurement activity. The defence industry needs tenders and contract timelines to be able to respond and invest in line with demand.
Beyond that, with a new Prime Minister implying an increase defence spending and likely to be in role in the next few weeks, there will need to be continued discussion over funding levels and how to achieve the ambitions set out in the SDR. Ideally this will focus on uplifts to the DIP, and not create a further pause in activity while the plan is recast.
DA: How do we widen the debate and educate a broader swathe of society in the necessities of robust and comprehensive defence?
Thomis: Recent opinion polls already show a plurality of support in the UK population for increased investment in defence, even at the expense of other public spending. But we need a wider national conversation, not only on the threats that we face and how we deter and counter them, but what practical measures individuals and families need to take to protect themselves in the event of hostilities. This can be done without creating a sense of panic, as evidenced by successful initiatives in the Scandinavian and Nordic countries.
DA: Finally, where does this leave Cohort and its future plans?
Thomis: Cohort is investing in response to growing need for its capabilities. We’re investing in a new facility in Sussex to ensure we can meet demand for surveillance and gunfire control solutions. We have expanded manufacturing capacity in North Devon to supply demand for ship protection systems for the Royal Navy. We’ve also recently invested £21 million in advanced digital sonar production in Germany.
The DIP gives us greater confidence that we can continue planning for future opportunities in the UK. Our continued investment across the Group, combined with our strong export business and growing international footprint, means we’re well positioned to support customer demand from both home and overseas customers.
We look forward to seeing the DIP translate into contracts, so we can continue investing to deliver capability.
DA: Thanks for articulating an informed and balanced approach to what will be seen by many as a potentially transformational document. We hope to be publishing additional interviews with other UK industrialists in the coming weeks – but this interview stands as “an important first step.” Many thanks.
Headline image courtesy of Cohort plc.
