News blog

Concurrent Technologies

  • BY: Andrew Hore |
  • POSTED: 27/04/2009 |

Concurrent Technologies has achieved four years of growth in profits and should make it five this year.

Concurrent designs and manufactures high performance computer products for the defence, telecoms, aerospace and health sectors. The products are based on Intel technology. The top eight customers account for more than 50% of revenues.

Revenues grew 19% to £12.6m in 2008 with the majority coming in the second half.  Pre-tax profit moved ahead from £2.43 to £2.95m. Capitalised development spending increased from £1.14m to £1.28m, against 2008 intangible asset write-downs of £545,000. Overall investment in research and development rose by 58%. This helps to keep the tax charge down thanks to R&D tax credits.

Defence accounted for 48% of revenues, telecoms 37%, industrial 8% and other sectors the remaining 7%.

At 32p a share, up 1.25p on the day, Concurrent is capitalised at £22.9m. There is a strong balance sheet including £4.99m in cash and no borrowings. The 2008 total dividend of 1.3p a share - the final dividend is 0.85p a share - means that the shares yield 4.1%.

Brewin Dolphin forecasts a profit of £3.2m in 2009. The shares are trading on nine times 2009 forecast earnings.

Organic growth is the focus. The Bangalore design facility has enabled Concurrent to take on 16 engineers, something that would be impossible to do in the UK in such as a short time. It will take two or three years for the full benefits of this to show through in new product revenues.

Concurrent plans to expand manufacturing capacity by around two-fifths.

Concurrent has been trading on Aim for nearly 13 years. In the early years it could be prone to having good years followed by a disappointing year. For example Concurrent did well a decade ago when telecoms was booming but was hit when demand slumped. That has changed in recent years and the business has a better spread of customers.

Defence dominates revenues but this sector encompasses a number of different products. That includes intelligence, surveillance, reconnaissance and unmanned air vehicles. Defence is still a strong area helping to offset weaker demand from the telecoms and industrial sectors in the first quarter. 

© 2024 Aim Micro. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Browse by issue
All issues
Popular tags
All tags

betbrokers, financial, gold, health, leisure, media, mobile, resources, services, technology

AIM Micro feeds

Keep up to date with articles published at AIMMicro.com. Subscribe to AIM Micro RSS Feeds