Concurrent Technologies (LON:CNC) Posts Record H1

Concurrent Technologies (LON: CNC) has announced record first-half results for the period ending June 30. Shares are up 34% YTD, with momentum firmly bullish so far this year.

The company, which designs and manufactures computer products, systems, and mission-critical solutions, reported a strong performance across various metrics.

Revenue increased by 26% to £21.1 million (H1 2024: £16.8 million), driving gross profit up by the same percentage to £10.7 million (H1 2024: £8.5 million).

Profit before tax (PBT) rose 17% to £2.7 million (H1 2024: £2.3 million), while earnings per share saw a modest increase of 4% to 2.78p (H1 2024: 2.68p).

EBITDA also improved, climbing 21% to £4.0 million (H1 2024: £3.3 million). The order intake surged 25% to £22.3 million (H1 2024: £17.8 million), although closing cash decreased by 12% to £7.8 million (H1 2024: £8.9 million).

The Products business unit demonstrated robust organic growth, with revenue up 10% to £17.9 million and profit increasing 12.5% to £3.2 million. The Systems business unit, while still in its early stages, showed promising growth, with revenue reaching £3.2 million (H1 2024: £0.5 million). The loss for the Systems unit remained consistent at £0.5 million, reflecting ongoing investment.

The company's cash position reflects a £2.7 million increase in trade debtors, a first-time dividend payment of approximately £1 million, and a £2.2 million increase in inventory levels to support future growth. Foreign exchange movements, particularly the fluctuation of the US Dollar against Sterling, negatively impacted Group profitability by £0.7 million.

Concurrent Technologies has secured a new £5 million Revolving Credit Facility with NatWest, providing financial flexibility as the company executes its growth strategy. Operationally, the company has seen growing momentum across both its Products and Systems business units, driven by new design wins across key geographies. This includes a significant £3.4 million order for VME-based 6U computer boards and record £90 million lifetime value major design wins. Post-period end, the company secured its largest UK defence win to date, a £4.0 million contract to supply VME computers to a prominent prime contractor.

The company launched Kratos, a rugged plug-in card (PIC) built on Intel's latest 6516P-B processor. Investments in machinery, test equipment, and power infrastructure have improved factory efficiency. Progress is also being made with the Colchester facility to improve capacity by the end of FY26, and the Systems business unit is on track for relocation into a new facility in the Brea region of Los Angeles in H2 FY25. Headcount has increased to 170, with 22 employees in the Systems division.

The board remains confident in delivering a financial performance ahead of FY25 market expectations, which currently stand at revenues of £43 million and profit before tax of £6 million.

Miles Adcock, CEO of Concurrent Technologies, stated, “We've delivered a strategically important first half, with a record financial performance, driven by continued momentum in our core Products business unit, and progress in our Systems business unit that strengthens the foundation for future growth.”