RNS Number : 5000S
Concurrent Technologies PLC
18 March 2016
 

18 March 2016

Concurrent Technologies Plc

(the "Company" or the "Group")

 

Results for the year ended 31 December 2015

 

Concurrent Technologies Plc (AIM: CNC), a world leading specialist in the design and manufacture of high-end embedded computer products, for critical applications in the defence, aerospace, transportation, telecommunications, scientific and industrial markets, announces results for the year to 31 December 2015.

 

Financial Highlights

 

·     Turnover increased by 33.6% to £17.1m (2014: £12.8m)

·     EBITDA increased by 40.0% to £4.2m (2014: £3.0m)

·     Profit before Tax increased by 58.8% to £2.7m (2014: £1.7m)

·     Cash in business plus deposits increased by 5.4% to £5.9m (2014: £5.6m)

·     EPS increased by 66.2% to 3.79 pence (2014: 2.28 pence)

·     Dividend increased by 5.56% to 1.90 pence per share for the year (2014: 1.80 pence)

 

Operational Highlights

 

·     Continued success of sales associated with telecommunications base station test equipment using AMC architecture.

·     84% growth in sales of products associated with scientific applications.

·     25% improvement in VPX™ architecture product sales mainly for defence applications.

·     7 new high performance processor boards, featuring the latest technology including 4th generation Intel® Core™ processors, low power Intel® Atom™ processors and latest Intel® Xeon® processors.

·     Launch of GPU (Graphics Processing Unit) accelerator board to augment AMC boards.

·     Investment in new equipment for manufacturing.

 

Michael Collins, Chairman, commented:

 

"We are a key supplier of Intel based technology to many major international companies and our products are used in a wide range of ever more sophisticated and high-reliability computer systems. While the outlook for the current worldwide economic climate is not clear, our core business is relatively resilient and there are many opportunities to introduce our highly innovative technology to new customers. We will continue our investment in R&D to ensure a constant expansion of our range of advanced technology products and thereby enhance our competitive position."

"Our objective remains to design more innovative products for complex, high technology, low to medium volume and high margin applications, including versions for use in harsh environments. Work has already started on the next generation of high performance processor boards and we continue to advance the capabilities of these products with new and complementary software and firmware packages providing security and high-speed data transfers together with simple integration."

"Sales in the first quarter of 2016 have been excellent and our current order book indicates a strong first half year performance."

 

Annual General Meeting

 

The annual general meeting of Concurrent Technologies Plc will be held at the Company's offices at 4 Gilberd Court, Newcomen Way, Colchester, Essex, CO4 9WN, on 19 May 2016 at 2:30pm.

 

Enquiries:

 

Concurrent Technologies Plc

+44 (0)1206 752 626

Glen Fawcett, CEO




Newgate (Financial PR)


Bob Huxford

+44 (0)207 653 9850

Robyn McConnachie




Cenkos Securities plc (NOMAD)


Neil McDonald

+44 (0)131 220 9771

Nick Tulloch/Beth McKiernan

+44 (0)131 220 9772/8

Extracts from the Strategic Report

Review of Operations

The Group achieved excellent results in 2015, with record sales of £17.07m (2014: £12.81m) and profit before tax of £2.73m (2014: £1.72m). Earnings per share were 3.79 pence (2014: 2.28 pence).

The Group EBITDA (measured as Operating Profit plus Depreciation and Amortisation) for 2015 was £4.17m (2014: £3.00m). The gross margin for the year was 50.6% (2014: 51.2%).

The successful sales of AMC architecture computers for telecommunications test equipment in 2014 continued into 2015 and overall sales for telecommunications applications grew by 45%. In 2015, there was also continued growth of sales associated with scientific applications, particularly for physics research projects, which have increased by 84%. In addition, sales for defence related applications grew by 27% as compared to 2014, mainly due to increased revenues from the USA. Exports increased by 24% as compared to 2014.

We continued to increase our investment in R&D from £2.76m in 2014 to £3.05m in 2015, of which £2.20m was capitalised (2014: £2.09m).

The Group continues to have no borrowings. We have again paid increased dividends during the year and our cash balances plus short to medium term cash deposits at the year-end improved to £5.87m (2014: £5.62m).

Operational Highlights

Seven new high performance embedded computers were released during the year, featuring the latest technology processors including the new generation Intel® Xeon® processors. As well as providing the latest high performance and low power units across all of our architectures for new applications and new customers, these computer boards also allow for practical upgrade paths for our existing long life cycle customers. In addition to these main computer boards, we also released further accessory boards to supplement the functionality of our main products providing, for example, faster and easier network connectivity and additional data storage.

During the year we launched our first GPU (Graphics Processing Unit) accelerator board or accelerator engine which offers a very high level of parallel processing to augment the processing capability of our current Intel® processor based AMC boards. Typical GPU accelerated computing applications include video transcoding, wireless test and infrastructure, image analysis and recognition, ISR (Intelligence, Surveillance and Reconnaissance), high speed physics experiments, simulations and encryption/decryption, where size, modularity, environmental requirements and power consumption make it impractical to use standard server based equipment.

There has also been continuing growth (25% in the year under review) in sales for our VPX™ architecture boards, which are mainly used in defence and surveillance related applications, including unmanned vehicles.

Due to the increase in production volumes, we acquired an additional pick-and-place module early in 2015, for the very fast placement of common components on boards. This has helped to speed up production throughput and avoid capacity issues.

Future Plans

We are a key supplier of Intel based technology to many major international companies and our products are used in a wide range of ever more sophisticated and high-reliability computer systems. While the outlook for the current worldwide economic climate is not clear, our core business is relatively resilient and there are many opportunities to introduce our highly innovative technology to new customers. We will continue our investment in R&D to ensure a constant expansion of our range of advanced technology products and thereby enhance our competitive position.

Our objective remains to design more innovative products for complex, high technology, low to medium volume and high margin applications, including versions for use in harsh environments. Work has already started on the next generation of high performance processor boards and we continue to advance the capabilities of these products with new and complementary software and firmware packages providing security and high-speed data transfers together with simple integration.

Sales in the first quarter of 2016 have been excellent and our current order book indicates a strong first half year performance.

Dividend

The Board has declared a second interim dividend of 1.20 pence per share (2014: 1.15 pence) which when added to the first interim dividend of 0.70 pence per share (2014: 0.65 pence) will make a total of 1.90 pence per share for the year (2014: 1.80 pence). This is an increase of 5.56% on dividends paid for 2014. The total cost of this second interim dividend will amount to £870,942. As in previous years, the Directors do not intend to recommend a final dividend. In order to account for the Easter holidays and to allow for our dividend payment to be scheduled as normal, the London Stock Exchange has agreed that the ex-dividend date for the final dividend is 29 March 2016 and the associated record date is 30 March 2016; the dividend payment date is 5 April 2016.

Annual General Meeting

The annual general meeting of Concurrent Technologies Plc will be held at the Company's offices at 4 Gilberd Court, Newcomen Way, Colchester, Essex, CO4 9WN, on 19 May 2016 at 2:30pm.

 

All companies and product names are trademarks of their respective organisations.

 

Consolidated Statement of Comprehensive Income



Year to


Year to



31 December


31 December



2015


2014

CONTINUING OPERATIONS


£


£

Revenue


17,073,829


12,806,315

Cost of sales


8,437,564


6,247,748

Gross profit


8,636,265


6,558,567

Operating expenses


5,945,140


4,892,800

Group operating profit


2,691,125


1,665,767

Finance income


42,292


58,079

Profit before tax


2,733,417


1,723,846

Tax


(21,351)


76,148

Profit for the year


2,754,768


1,647,698






Other Comprehensive Income





Items that will be reclassified subsequently to profit or loss:





Exchange differences on translating foreign operations


62,918


90,539

Tax relating to components of other comprehensive income


-


-

Other Comprehensive Income for the year, net of tax


62,918


90,539

Total Comprehensive Income for the year


2,817,686


1,738,237






Profit for the period attributable to:





Equity holders of the parent


2,754,768


1,647,698






Total Comprehensive Income attributable to:





Equity holders of the parent


2,817,686


1,738,237






Earnings per share





Basic earnings per share


3.79p


2.28p






Diluted earnings per share


3.79p


2.28p



 

Consolidated Balance Sheet



As at


As at



31 December


31 December



2015


2014



£


£

ASSETS





Non-current assets





Property, plant and equipment


690,357


608,044

Intangible assets


6,307,044


6,018,931

Deferred tax assets


129,647


73,440



7,127,048


6,700,415

Current assets





Inventories


3,774,285


2,699,658

Trade and other receivables


2,520,573


2,790,426

Current tax assets


284,419


307,912

Other financial assets


1,000,000


    -

Cash and cash equivalents


4,873,815


5,624,505



12,453,092


11,422,501






Total assets


19,580,140


18,122,916






LIABILITIES





Non-current liabilities





Deferred tax liabilities


1,305,237


1,279,852

Long term provisions


9,968


7,314



1,315,205


1,287,166

Current liabilities





Trade and other payables


2,411,524


2,500,524

Short term provisions


31,987


33,922

Current tax liabilities


    -


665



2,443,421


2,535,111






Total liabilities


3,758,626


3,822,277






Net assets


15,821,514


14,300,639






EQUITY





Capital and reserves





Share capital


       739,000


       739,000

Share premium account


    3,693,818


    3,693,818

Capital redemption reserve


       256,976


       256,976

Cumulative translation reserve


78,641


15,723

Profit and loss account


11,053,079


9,595,122

Equity attributable to equity holders of the parent


15,821,514


14,300,639






Total equity


15,821,514


14,300,639



 

Consolidated Cash Flow Statement



Year to


Year to



31 December


31 December



2015


2014



£


£

Cash flows from operating activities





Profit before tax for the period


2,733,417


1,723,846

Adjustments for:





Finance income       


(42,292)


(58,079)

Depreciation       


224,778


178,059

Amortisation       


1,254,083


1,160,940

Impairment loss       


690,201


450,000

Profit on disposal of property, plant and equipment (PPE)


(1,334)


    -

Share-based payment       


26,192


6,279

Exchange differences       


86,711


29,060

Increase in inventories       


(1,074,627)


(149,102)

Decrease in trade and other receivables       


269,853


83,928

Increase/(decrease) in trade and other payables       


(88,371)


563,828

Cash generated from operations


4,078,611


3,988,759

Tax (paid)/received


48,956


284

Net cash generated from operating activities


4,127,567


3,989,043






Cash flows from investing activities





Interest received


42,292


58,079

Cash released from/(placed) on Deposit


(1,000,000)


2,602,689

Purchases of property, plant and equipment (PPE)


(305,874)


(303,816)

Proceeds from sale of PPE


1,500


-

Capitalisation of development costs and purchases of intangible assets


(2,231,637)


(2,161,809)

Net cash used in investing activities


(3,493,719)


195,143






Cash flows from financing activities





Equity dividends paid


(1,343,141)


(1,257,305)

Issue of Ordinary shares


-


300,001

Purchase of treasury shares


(15,461)


    -

Net cash used in financing activities


(1,358,602)


(957,304)






Effects of exchange rate changes on cash and cash equivalents


(25,936)


56,764






Net increase/(decrease) in cash


(750,690)


3,283,646

Cash at beginning of period


5,624,505


2,340,859

Cash at the end of the period


4,873,815


5,624,505








 

Consolidated Statement of Changes in Equity







Capital


Cumulative


Profit





Share


Share


redemption


translation


and loss


Total



capital


premium


reserve


reserve


account


Equity



£


£


£


£


£


£

Balance at 1 January 2014


     727,000


 3,405,817


     256,976


(74,816)


9,212,552


13,527,529














Profit for the period


                -  


                -  


                -  


                -  


1,647,698


1,647,698

Exchange differences on translating foreign operations


                -  


                -  


                -  


90,539


                  -  


90,539

Total comprehensive income for the period


                -   


                -  


                -  


90,539


1,647,698


1,738,237

Transactions with owners:













Share-based payment


                -  


                -  


                -  


                -  


6,279


6,279

Deferred tax on share based payment


                -  


                -  


                -  


                -  


(14,102)


(14,102)

Dividends paid


                -  


                -  


                -  


                -  


(1,257,305)


(1,257,305)

Issue of Ordinary shares


12,000


288,001


                -  


                -  


                -


300,001

Balance at 31 December 2014


     739,000


3,693,818


     256,976


15,723


9,595,122


14,300,639














Profit for the period


                -  


                -  


                -  


                -  


2,754,768


2,754,768

Exchange differences on translating foreign operations


                -  


                -  


                -  


62,918


                  -  


62,918

Total comprehensive income for the period


                -  


                -  


                -  


62,918


2,754,768


2,817,686

Transactions with owners:













Share-based payment


                -  


                -  


                -  


                -  


26,192


26,192

Deferred tax on share based payment


                -  


                -  


                -  


                -  


35,599


35,599

Dividends paid


                -  


                -  


                -  


                -  


(1,343,141)


(1,343,141)

Purchase of Ordinary shares


                -  


                -  


                -  


                -  


(15,461)


(15,461)

Balance at 31 December 2015


     739,000


3,693,818


     256,976


78,641


11,053,079


15,821,514
















 

NOTES

 

1.  The Group financial statements consolidate those of the Company and its subsidiaries (together referred to as the 'Group'). The financial information set out in these preliminary results has been prepared in accordance with International Financial Reporting Standards ('IFRSs') as adopted by European Union. The accounting policies adopted in this results announcement have been consistently applied to all the years presented and are consistent with the policies used in the preparation of the statutory accounts for the period ended 31 December 2014. The consolidated financial information is presented in sterling (£), which is the company's functional and the Group's presentation currency.

 

2.  The financial information set out above does not constitute the Group's statutory accounts for the years ended 31 December 2015 or 2014, but is derived from those accounts. Statutory accounts for 2014 have been delivered to the Registrar of Companies and those for 2015 will be delivered following the Annual General Meeting. The auditors have reported on those accounts; their reports were (i) unqualified, (ii) did not contain statements under section 498(2) or (3) of the Companies Act 2006 in respect of 2014 or 2015 and (iii) did not draw attention to any matters by way of emphasis.

 

3.  The calculation of basic earnings per share is based on the weighted average number of Ordinary Shares in issue during 2015 of 72,594,150 (2014: 72,278,298) allowing for any adjustment made as a consequence of the Company having issued no  Ordinary Shares during 2015 (2014: 1,200,000) and on the profit after tax for 2015 of £2,754,768 (2014: £1,647,698). The calculation of diluted earnings per share incorporates nil Ordinary Shares (2014: 11,992) in respect of performance related employee share options. The profit after tax is the same as for basic earnings per share.

 

4.  The annual general meeting of Concurrent Technologies Plc will be held at the Company's offices at 4 Gilberd Court, Newcomen Way, Colchester, Essex, CO4 9WN, on 19 May 2016 at 2:30pm.

 

Copies of the Annual Report will be sent to Shareholders and will also be available from the Company's Registered Office: 4, Gilberd Court, Newcomen Way, Colchester, Essex, CO4 9WN, UK, and on the Company's website: www.cct.co.uk.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
FR EAPDXFFXKEFF
Anonymous (not verified) Results for the year ended 31 December 2015 24138482 A Fri, 03/18/2016 - 07:00 Results and Trading Reports CNC