REG - Concurrent Tech. - Trading Update

Concurrent TechnologiesAnnouncement

16/01/2025 07:00

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RNS Number : 5070T  Concurrent Technologies PLC  16 January 2025

This announcement contains inside information as stipulated under the UK
version of the Market Abuse Regulation No 596/2014 which is part of English
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publication of this announcement via a Regulatory Information Service, this
information is considered to be in the public domain.

 

16 January 2025

 

Concurrent Technologies Plc

(the "Company" or the "Group")

 

 Trading Update

 

Record year with revenue for FY24 expected to be c.25% ahead of FY23

 

Concurrent Technologies Plc (AIM: CNC), a designer and manufacturer of
leading-edge computer products, systems and mission critical solutions used in
high-performance markets by some of the world's major OEMs, is pleased to
announce an update on trading for the year ending 31 December 2024
("FY24").

 

Based on its unaudited management accounts for FY24, the Company expects to
report both revenues and profit before tax approximately 10% ahead of market
expectations*, driven by the Group's strategy to more assertively address its
market opportunity by investing in talent and product development. As a
result, FY24 is set to be a record year, with revenue expected to be
approximately 25% ahead of FY23. The increase in profit reflects the initial
delivery of operational gearing as the business scales. This performance is
achieved despite considerable investment in the Systems business in LA which
was acquired in FY23 and was loss making in FY24, in line with expectations.

 

In recent years, the Company has strategically focused on securing multi-year
'design wins'. These agreements, where a Concurrent product is integrated into
a customer's design, have the potential to generate annual repeat orders for
up to a decade. Of particular note, in FY24 the Group achieved a remarkable
milestone by securing 22 design wins, including 10 'major wins' which are
expected to contribute over £1m annually once they reach peak production,
typically two to three years after the initial design win. While not
guaranteed, these 10 key wins have the potential to deliver a combined
lifetime value of £100m, underscoring a pivotal point in the Company's growth
trajectory. This marks the second year of successfully building future revenue
through design wins, solidifying a strong foundation for long-term success.
The Company expects to maintain this momentum and capitalise on further
opportunities in FY25.

 

 Miles Adcock, CEO of Concurrent Technologies, commented: "This has been
another strong year for Concurrent, delivering on our strategy whilst
investing for the future. Our FY24 order intake is expected to be £41m, and
our growing pipeline of major design wins reinforces our strong foundation for
continued, year-on-year growth.

 

"Our Products Business Unit continues to excel, driving profitability across
the Group, while the Systems Business Unit has secured several key orders,
including the $3.7m win in APAC, setting the stage for further growth in the
new financial year.

 

"The transformation we've achieved over the past three years has been
remarkable, positioning Concurrent for sustained success and as we enter FY25,
our optimism for both the short- and long-term has never been stronger.  I'm
incredibly proud of the world-class teams we've built across the business,
providing confidence in the Group's ability to deliver in FY25 and beyond."

 

*In so far as the Board is aware, consensus market expectations for FY24 are
revenues of £36m and profit before tax of £4.7m.

 

Enquiries:

 

 Concurrent Technologies Plc

Miles Adcock - CEO

                                          +44 (0)1206 752626
 Kim Garrod - CFO

 Alma Strategic Communications              +44 (0)20 3405 0205

Hannah Campbell

 Josh Royston

 Will Merison

 Cavendish Capital Markets Limited (NOMAD)  +44 (0)131 220 9771

Neil McDonald

                                          +44 (0)131 220 9772
 Peter Lynch

 

 

About Concurrent Technologies Plc

 

Concurrent Technologies Plc develops and manufactures high-end embedded
plug-in cards and systems 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®
processors, including the latest generation embedded Intel® Core™
processors, Intel® Xeon® and Intel Atom™ 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.concurrent.tech (http://www.concurrent.tech) .

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