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.
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
Kim Garrod - CFO
|
+44 (0)1206 752626
|
|
Alma Strategic Communications
Hannah Campbell
Josh Royston
Will Merison
|
+44 (0)20 3405 0205
|
|
Cavendish Capital Markets Limited
(NOMAD)
Neil McDonald
Peter Lynch
|
+44 (0)131 220 9771
+44 (0)131 220 9772
|
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.
