Concurrent Technologies Plc
(the “Company” or the “Group”)
Interim Results for the six months ended 30 June 2020
Concurrent Technologies Plc (AIM: CNC), a world leading specialist in the design and manufacture of high-end embedded computer boards for critical applications, announces interim results for the six months to 30 June 2020, reflecting a positive trading period with strong sales, profit before tax and investment.
Financial Highlights
- Turnover of £9.2m (H1 2019: £9.5m)
- Gross profit of £4.9m (H1 2019: £4.9m)
- Gross margin of 52.9% (H1 2019: 51.7%)
- Group operating profit of £1.2m (H1 2019: £1.6m)
- Adjusted Profit before tax £1.2m (H1 2019: £1.7m, after adjusting for non-recurring income of £1.0m) *
- Profit before tax of £1.2m (H1 2019: £2.7m) **
- Adjusted EPS on continuing activities of 1.62 pence (H1 2019: 2.21 pence)*
- EPS of 1.62 pence (H1 2019: 3.31 pence)
- Interim dividend increased to 1.1p per share (H1 2019: 1.05p)
- Cash balance (including cash deposits) at 30 June 2020 of £10.0m (H1 2019: £10.0m)
- Cessation of engineering facility in India
* Adjusted results are prepared to provide a more comparable indication of the Group's core business performance by removing the impact of receipts from the key man insurance policy.
** 2019 statutory profit before tax includes £1m non-recurring income relating to key man insurance.
Operational Highlights
- Defence remains the largest individual sector, accounting for 68% of Group turnover during the period
- Strong order intake resulting in record order book in May 2020
- Global customer base continues to expand with exports generating 96% of Group revenues (H1 2019: 90%)
- Spending on R&D during the period was £1.8m (H1 2019: £1.7m)
Mark Cubitt, Chairman of Concurrent Technologies Plc, commented: “Despite the ongoing situation regarding COVID-19 and the one-time additional costs associated with the reorganisation of the engineering team, the Group's trading has been consistently strong throughout a very volatile period and the team has successfully built on an excellent 2019. With a robust balance sheet and a solid overall order book, the Group is in an excellent position for future growth and the Board has confidence in meeting market expectations for the current year.”