Concurrent Technologies Shares Rise on Record H1 and Upgraded Guidance

Concurrent Technologies (LON: CNC), the AIM-listed maker of high-end embedded computing systems for defence and aerospace, told markets earlier today that it now expects full-year revenue and profit to beat analyst forecasts, after record first-half revenue, profit and order intake.

Shares in the Colchester-based group rose to around 275p in early trade, up from Friday’s close of 265p, having touched 285p intraday, after interim results published before the market opened.

Revenue for the six months to 30 June rose 10% to £23.2m, with pre-tax profit up 19% to £3.2m. Order intake, the value of new orders won in the period, more than doubled to £46.9m, already matching all of the prior full year.

The surge was driven by the group’s largest single contract to date, worth around £17m, signed in June with a long-standing European customer and covering four years of demand, plus a $9.4m US defence order confirmed after the period ended. Chief executive Miles Adcock said: “We have delivered another record first half, reflecting the continued execution of our strategy and the strength of demand for our high-performance computing solutions.”

The Systems division, built around the 2023 acquisition of Phillips Aerospace, turned profitable for the first time, with gross margin nearly doubling to 26.3%. Adcock called the division’s progress “particularly encouraging”, adding he expects “strong year on year progress in all aspects.”

Management now guides full-year revenue to be materially ahead and profit ahead of the £52m revenue and £8m profit consensus it had previously disclosed to the market. Adcock cautioned that order timing varies and flagged an unusually busy fourth quarter, while the company also expects second-half gross margin to dip as the low-margin early phase of the record European contract is recognised. CFO Kim Garrod is due to retire at the end of the year, with Emma Ciechan set to join as her successor in October.