(Alliance News) - Concurrent Technologies PLC shares were tumbling Monday morning after warning some programme delays could see revenue shifting to 2022.
Shares in the embedded computer products manufacturer were down 8.9% in London on Monday morning at 95.70 pence each.
Pretax profit in 2020 fell 32% to GBP2.8 million from GBP4.1 million in 2019.
Revenue, however, improved 8.8% to GBP21.1 million from GBP19.4 million.
Operating expenses rose to GBP8.4 million from GBP7.2 million in 2019, with the company's research & development costs growing to GBP3.9 million from GBP3.5 million.
Concurrent noted its production and the design and development functions remained open during 2020 and, for the most part, was fully operational throughout the pandemic.
Chair Mark Cubitt said: "During 2020, the group introduced several new high-performance embedded computer boards and accessory modules. These included products based on the ninth generation embedded Intel Xeon processor for use in AMC, CompactPCI and OpenVPX architectures."
"As part of the group's long-term continuous improvement strategy, and to mitigate an identified risk to the business during 2020, a further investment of GBP155,000 was made within manufacturing to introduce a new circuit board processing line," Cubitt added.
The firm upped its annual dividend 2.0% to 2.55p from 2.50p in 2019.
Looking ahead, the chair said: "The board is taking a cautious approach to revenue growth in the coming year because of the continuing uncertainty caused by the Covid-19 outbreak and the delays seen to some programmes potentially moving revenue from 2021 to 2022.
"However, the group's proven ability to adapt to the challenges brought about by the pandemic, the overhead savings from closure of the Indian design office, its ability to provide a well-supported, UK designed and manufactured product, and the current record order book, which has seen a substantial increase during the first quarter of 2021, gives the board confidence in the group's continuing solid performance."
By Paul McGowan; paulmcgowan@alliancenews.com
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Concurrent Technologies (CNC)