LONDON (Alliance News) - Concurrent Technologies PLC raised its total dividend for 2013, and saw pretax profit drop, as it was hit by export licence restrictions.
Concurrent Technologies produces computer products for the defence, aerospace, transportation, telecommunications, scientific and industrial markets.
The company posted a second interim dividend of 1.10 pence, bringing its total dividend to 1.75 pence, up from 1.70 pence in 2012. The company does not intend to recommend a final dividend.
Concurrent posted a pretax profit of GBP453,929, down from GBP2.0 million in the previous year, as revenue declined to GBP11.9 million from GBP12.8 million, and operating expenses rose to GBP5.6 million from GBP4.7 million in 2012.
Revenue was impacted by issues with licensing advanced technology exports to emerging markets where it was expecting sales growth. For some of its products it has to be granted export licences before it can export to some companies.
The company said it continued to work with officials from the department of UK Government's department of Business Innovation and Skills to review the current system of control, and see if the affected products could be moved to a more flexible export licensing system.
Concurrent warned that this may continue to adversely affect its trading relationships with some of its customers.
Concurrent said that, although the review from BIS has been delayed due to world events, it has made good progress and expects a more flexible licensing system to be introduced by the end of June 2014.
Results were further hit by a write down of research and development design assets of GBP842,783.
The company said that its objective remains to design more innovative products, including products for use in harsh environments. It plans to establish a research and development facility in Massachusetts to complement its UK and Indian design centres.
It also expressed confidence for its future, saying that the "probable improvement in the situation regarding export licence restrictions" are expected to improve its prospects during 2014.
Shares in Concurrent were trading down 9.1% at 40.00 pence Tuesday afternoon.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Concurrent Technologies (CNC)