Concurrent Technologies Plc
(the “Company” or the “Group”)
Half year results for the six months to 30 June 2024
Record H1 financial performance, delivering good contract momentum
Concurrent Technologies Plc (AIM: CNC), a designer and manufacturer of leading-edge computer products, systems and mission critical solutions used in high-performance markets by some of the world’s major OEMs, is pleased to announce its results for the six months to 30 June 2024 (“H1 2024”).
Financial highlights
| H1 2024 | H1 2023 | % change | |
| Revenue | £16.8m | £12.1m | +39 |
| Gross profit | £8.5m | £6.0m | +42 |
| Profit before tax | £2.3m | £1.0m | +130 |
| Earnings per share | 2.68p | 1.54p | +74 |
| EBITDA | £3.3m | £2.1m | +57 |
| Order intake | £17.8m | £14.5m | +23 |
| Closing cash | £8.9m | £3.0m | +197 |
| · | A record financial performance in the period, achieving a year-on-year revenue increase of 39% to £16.8m and more than doubling of profit before tax (PBT) to £2.3m. |
| · | Order intake increased by 23% to £17.8m. |
| · | Strong focus on balancing cost and profitability, delivering EBITDA of £3.3m from revenue of £16.8m while maintaining investment in R&D, Systems and go-to-market teams to mobilise the Group for growth in Boards and Systems. |
| · | Cash balance remains strong at £8.9m (HY 2023: £3.0m), post a significant supplier payment in the period for key Last-Time-Buy components (£3.5m). |
Operational highlights
| · | Continued investment in R&D in line with strategy. |
| · | Formal alignment of the Company’s leadership structure to its vision and ambition has seen it split into leadership teams servicing Products and Systems and representing a first step in moving to a two-revenue streamed business. |
Products
| · | Secured eight major design wins across US, UK, Europe and Asia Pacific in the period, which is equal to amount won in the whole of FY23, creating a long-term expectation of substantive growth. Since the change in management and the resulting new strategy, 16 major design wins have been delivered in total at the end of H1 2024. |
| · | The design wins include the Group’s largest ever contract to date of $6m (including extension), with a major US Defence & Aerospace prime contractor. |
Systems
| · | Phillips Aerospace had a strong start in its first full year as part of the Group, successfully merging into the Company’s culture and ways of working and delivering significant progress in the US. |
| · | Strategic investment in key hires, with the appointment of a new Vice President of Systems, and the planning for a relocation into a new facility in the Brea region of Los Angeles. |
| · | Two contracts (over $200k in value) secured in the period through Phillips, with a total value of $518k, where the products are new offerings directly related to the Group’s stated strategy for providing integrated computer systems. |
Outlook
| · | Momentum built in H1 2024 has continued into H2 2024 with a healthy pipeline of opportunities across both Products and Systems. |
| · | The eight major design wins in H1 2024 will see their programmes bolstered over the next two-to-three years, before being delivered over a seven-to-ten-year period. |
| · | The Board is confident in delivering results for 2024 in line with market expectations. |
Miles Adcock, CEO of Concurrent Technologies, commented: “Demonstrated by the record financial performance in the period, we are successfully delivering on the Group’s growth strategy that everyone at Concurrent Technologies has worked hard to implement. The Group has been transformed over the last three years and the eight major design wins in the period, from across the globe, reflect the progress that we have made.
“We have entered the second half of the year with good momentum and remain focused on managing cost and investment to drive substantial growth in the coming years across our Products and Systems divisions.”
Enquiries:
| Concurrent Technologies Plc Miles Adcock – CEOKim Garrod – CFO | +44 (0)1206 752626 |
| Alma Strategic Communications Josh RoystonHannah CampbellWill Merison | +44 (0)20 3405 0205 |
Cavendish Capital Markets Limited (NOMAD) Neil McDonaldPeter Lynch | +44 (0)131 220 9771+44 (0)131 220 9772 |