Concurrent Technologies Share News (CNC)

(Sharecast News) - Concurrent Technologies reported record interim results on Monday, as it continued to scale both its products and systems divisions while investing in capacity and research.

For the six months ended 30 June, revenue rose 26% to £21.1m, with gross profit up by the same margin to £10.7m.

Profit before tax increased 17% to £2.7m, while EBITDA was 21% higher at £4.0m.

Earnings per share advanced 4% to 2.78p.

Order intake rose 25% to £22.3m, with growth across the UK, Europe and other international markets offsetting a slower US contribution due to delays in the defence budget.

The products business delivered a 10% rise in revenue to £17.9m and a 12.5% increase in profit to £3.2m.

The systems unit generated £3.2m of revenue, up sharply from £0.5m a year earlier, though it remained loss-making at £0.5m as investment in operations continued.

Concurrent highlighted a £3.4m order for VME-based computer boards, lifetime design wins worth £90m, and its largest UK defence order to date of £4m secured post-period end.

It also launched Kratos, a rugged plug-in card built on Intel's latest processor, with early access secured ahead of peers.

The AIM-traded company said ended the period with cash of £7.8m, down from £8.9m a year earlier, reflecting higher receivables, increased inventories to support growth, and its first dividend payment of around £1m.

A new £5m revolving credit facility with NatWest was also agreed to provide financing flexibility.

"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," said chief executive Miles Adcock.

"Innovation remains central to our strategy, evidenced by the early success of our Kratos product, reflecting Concurrent's ability to deliver market-leading technology."

He added that strong order intake and disciplined investment reinforced confidence in delivering results ahead of market expectations for the year.

At 1252 BST, shares in Concurrent Technologies were down 1.41% at 184.36p.

Reporting by Josh White for Sharecast.com.