TIDMCNC
RNS Number : 5749L
Concurrent Technologies PLC
04 January 2023
This announcement contains inside information as stipulated
under the UK version of the Market Abuse Regulation No 596/2014
which is part of English Law by virtue of the European (Withdrawal)
Act 2018, as amended. On publication of this announcement via a
Regulatory Information Service, this information is considered to
be in the public domain.
4 January 2023
Concurrent Technologies Plc
(the 'Company')
Post-Close Trading Update
Concurrent Technologies Plc (AIM: CNC), a world-leading
specialist in the design and manufacture of high-end embedded
computer systems and boards for critical applications, is pleased
to announce an update on trading for the year ending 31 December
2022 ("FY22").
Based on its unaudited management accounts for FY22, the Company
expects to report revenues circa 10% ahead of market expectations*
and profit before tax at least in line with market
expectations**.
This was achieved despite the global supply chain shortages
which extended lead times throughout the year, delaying
manufacture, shipping and revenues. The Company invested
significant cash into holding increased inventory to react quickly
once parts became available, as happened at the end of FY22. To
best manage this recent surge in activity the Company implemented a
double shift throughout Q4, resulting in record revenues in
November and December 2022.
Cash was depleted throughout the year as a result of the
Company's declared strategy of investing in R&D, systems, and
growth of its home markets in the US and UK. The additional
investment in components holdings to mitigate supply shortages,
resulted in a cash low point at the end of FY22, at a value of
circa GBP4M.
With the increased shipping of product in November and December
2022, the Company anticipates strong cash generation at the start
of FY23, with further episodes of cash generation as components
become more available. Whilst overall supply chains are seeing a
degree of recovery, the Company is in many cases dependent on some
very specific components, and hence FY23 forecasts remain prudently
cautious.
The Company intends to continue its strategy to invest in growth
during FY23, and this includes efforts to make acquisitions that
align with a strategy of owning more of the technology building
blocks in embedded systems, in addition to single board
computers.
FY22 has seen excellent strategic progress. The Company now
sells systems products and has received its first purchase orders
accordingly. It has also qualified a manufacturing partner in the
USA and is therefore capable of selling domestic product in
America. In addition, the Company's accelerated R&D efforts are
resulting in increased demand for evaluation boards which is the
route to being designed into latter production phases that
typically last several years.
Following a record order intake in FY21 of GBP25M, the Company
is proud to announce order intake for FY22 in excess of GBP31M, an
increase of over 25%. The FY22 closing backlog was also very
strong, in excess of GBP26M. These figures indicate that, as supply
chains ease, the Company has potential for significant revenue
growth. A further cause for optimism is that the Company expects to
run double shifts throughout Q1 FY23, maintaining its increased
capacity.
The Board previously confirmed a policy of paying dividends from
profit generated during the year. Accordingly, the Board does not
currently propose to pay a dividend in respect of FY22, with cash
instead being used to fund further investment across the business,
including in component holdings to mitigate the impact of any
potential further restrictions. However, the Board is still
committed to the capital discipline of paying a dividend when
future profits allow.
Chief Executive Officer Miles Adcock said "Whilst the prolonged
components shortages have frustratingly slowed down revenue
generation, it is clear that our strategy is yielding growth
potential. The fact that we have our highest ever backlog,
following a record order intake, gives us real optimism for short
to mid-term performance growth as supply chains improve. In
addition, our longer-term strategies are exciting our customers and
colleagues, so it is all to play for."
*Consensus revenue expectations for 2022 are GBP16m
**Consensus profit before tax expectations for 2022 are
GBP0.1m
Enquiries:
Concurrent Technologies Plc
Miles Adcock, CEO +44 (0)1206 752626
Kim Garrod, CFO
SEC Newgate (Financial PR)
Bob Huxford +44 (0)20 3757 6880
Isabelle Smurfit +44 (0)20 3757 6880
Harry Handyside concurrent@secnewgate.co.uk
Cenkos Securities Plc (NOMAD)
Neil McDonald +44 (0)131 220 9771
Peter Lynch +44 (0)131 220 9772
About Concurrent Technologies Plc
Concurrent Technologies Plc develops and manufactures high-end
embedded computer products for use in a wide range of
high-performance, long-life cycle applications within the
telecommunications, defence, security, telemetry, scientific and
aerospace markets, including applications within extremely harsh
environments. The processor products feature Intel (R) processors,
including the latest generation embedded Intel (R) Core(TM)
processors, Intel (R) Xeon (R) and Intel Atom(TM) processors. The
products are designed to be compliant with industry specifications
and support many of today's leading embedded Operating Systems. The
products are sold world-wide.
For more information on Concurrent Technologies Plc and its
products please visit www.gocct.com.
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this announcement are the property of their respective owners.
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END
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