RNS Number : 9613Q
Concurrent Technologies PLC
18 September 2017
 

18 September 2017

Concurrent Technologies Plc

(the "Company" or the "Group")

 

Interim Results for the six months ended 30 June 2017

 

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 2017.

 

Financial Highlights
 

·    Turnover of £7.8m (H1 2016: £9.0m)1

·    Gross profit £4.3m (H1 2016: £4.9m)

·    Gross margin maintained at 54.8% (H1 2016: 54.8%)

·    Profit before tax of £1.4m (H1 2016: £1.5m)

·    EPS of 1.84 pence (H1 2016: 2.12 pence)

·    Interim dividend increased by 12.5% to 0.90p per share (H1 2016: 0.80p)

·    Cash balance (including cash deposits) at 30 June 2017 of £7.9m (H1 2016: £8.2m)

 

1.     H1 2016 turnover was inflated by an exceptional sale

 

Operational Highlights

 

·   Defence related sales, in particular from US customers, now account for more than half of the Group revenues and continue to drive the business

·     Expanding global customer base with exports generating 84% of Group revenues (H1 2016: 81%)

·     £1.2m invested into R&D during the period, resulting in strong pipeline of future product releases

·   Release of two new rugged conduction-cooled boards, plus the launch of new range of Intel® Xeon® boards during the period

 

Michael Collins, Chairman of Concurrent Technologies Plc, commented:

 

"After a solid performance in the first-half of the year we have started the second-half with an expanding list of customers, many new opportunities and a strong balance sheet. The outlook for the future remains positive."

 

 

Enquiries:

 

Concurrent Technologies Plc
Glen Fawcett, CEO

 

+44 (0)1206 752 626

 

 

Newgate (Financial PR)
Bob Huxford

James Browne


+44 (0)207 653 9850

 

 

Cenkos Securities plc (NOMAD)
Neil McDonald

Nick Tulloch

Beth McKiernan


+44 (0)131 220 9771

+44 (0)131 220 9772

+44 (0)131 220 9778

 

 

 

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 traditionally feature Intel® processors, including the latest generation Intel® Core™ i7 processors, Intel® Xeon® and Intel® Atom™ processors.  More recently NVIDIA® Tegra® K1 devices have been added to the product ranges along with complementary switch and I/O boards. 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.cct.co.uk

 

All trademarks, registered trademarks and trade names used in this announcement are the property of their respective owners.

 

 

CHAIRMAN'S STATEMENT

 

Financial Summary

 

I am pleased to report a good performance for the first-half of 2017, consolidating the strong performances from the last two years. 

 

Revenue for the period was £7.8m (H1 2016: £9.0m), the variance is largely due to an exceptional sale in early 2016 and defence customer delays in H1 2017.  Gross profitability was £4.3m (H1 2016: £4.9m).  Gross margins were maintained at 54.8% (H1 2016: 54.8%). The unaudited profit before tax for the same period was £1.4m (H1 2016: £1.5m) with associated earnings per share of 1.84 pence (H1 2016: 2.12 pence).

 

The Group balance sheet has been strengthened with cash balances (including cash deposits) at
30 June 2017 of £7.9m (H1 2016: £8.2m) and total equity increased to £18.0m (H1 2016: £16.7m).

 

Dividend

 

The Board has declared a first interim dividend of 0.90p per share (H1 2016: 0.80p) - an increase of 12.5%. The total cost of this dividend will amount to £654,466. The ex-dividend date for this interim dividend is 28 September 2017, the record date is 29 September 2017 and the payment date is 13 October 2017.

 

Review of Operations

 

Defence related revenues continue to drive the business, in particular from US customers, who now account for more than half of the Group sales. Exports generated 84% of total Group revenues (H1 2016: 81%). During this reporting period, many new customers have been gained.

 

The Group invested £1.2m during H1 2017 (H1 2016: £1.2m) in research and development for new products and their associated variants. This investment in innovative engineering solutions should help safeguard revenues in future years. Many products have completed exhaustive testing in the first-half of 2017 and the pipeline for future product releases is encouraging.

 

The Company still awaits confirmation of the trade and tariff legislation to be agreed by the UK Government with other countries. Because most countries, including the USA and those of the European Union, apply a zero-percentage import tariff rating to our products we don't expect our business to be affected. The vote to leave the European Union has had little impact on trading; the main effect has been seen in the difficulty of recruiting non-UK research and development engineers to work in the UK and we wait to see if this is just a temporary situation.

 

Future Plans

 

We will continue to expand our product ranges through the development of new boards and systems together with complementary software. In particular, we will focus on our VPX™ products in both ruggedized and non-ruggedized variants. These new products will be designed for our key market sectors of complex, high technology, low to medium volume and high margin applications.

 

To improve the development process, the Group will this year invest in more development equipment including a sophisticated multi-gigabit per second high-speed analyser. In addition, to provide a more flexible response to customer orders, a faster "pick and place" machine will be acquired in mid-2018. This type of machine is used for high-speed, fine-precision placement of surface-mount components onto printed circuit boards.

 

Outlook

 

After a solid performance in the first-half of the year we have started the second-half with an expanding list of customers, many new opportunities and a strong balance sheet. The outlook for the future remains positive.

 

 

 

Michael Collins

Chairman

 

15th September 2017

 

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

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF

COMPREHENSIVE INCOME

unaudited interim results to 30 June 2017

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEET

unaudited interim results to 30 June 2017

 

 

 

As at

 

As at

 

As at

 

 

30/06/17

 

30/06/16

 

31/12/16

ASSETS

 

£

 

£

 

£

Non-current assets

 

 

 

 

 

 

Property, plant and equipment

 

       391,651

 

       643,786

 

       414,209

Intangible assets

 

    7,369,683

 

    6,397,135

 

    6,846,520

Deferred tax assets

 

       146,023

 

       101,361

 

       112,128

 

 

    7,907,357

 

    7,142,282

 

    7,372,857

Current assets

 

 

 

 

 

 

Inventories

 

    3,334,750

 

    2,870,131

 

    3,239,855

Trade and other receivables

 

    2,526,923

 

    2,642,486

 

    3,327,629

Current tax assets

 

       203,710

 

       163,180

 

         93,156

Other financial assets

 

                -  

 

                -  

 

    1,000,000

Cash and cash equivalents

 

    7,885,032

 

    8,179,993

 

    6,773,083

 

 

  13,950,415

 

  13,855,790

 

  14,433,723

 

 

 

 

 

 

 

Total assets

 

  21,857,772

 

  20,998,072

 

  21,806,580

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

Deferred tax liabilities

 

    1,417,245

 

    1,280,077

 

    1,291,468

Long term provisions

 

          3,986

 

         10,398

 

          6,699

 

 

    1,421,231

 

    1,290,475

 

    1,298,167

Current liabilities

 

 

 

 

 

 

Trade and other payables

 

    2,384,949

 

    2,938,487

 

    2,810,655

Short term provisions

 

         19,932

 

         32,712

 

         23,939

Current tax liabilities

 

                -  

 

          6,735

 

                -  

 

 

    2,404,881

 

    2,977,934

 

    2,834,594

 

 

 

 

 

 

 

Total liabilities

 

    3,826,112

 

    4,268,409

 

    4,132,761

 

 

 

 

 

 

 

Net assets

 

  18,031,660

 

  16,729,663

 

  17,673,819

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

Capital and reserves

 

 

 

 

 

 

Share capital

 

       739,000

 

       739,000

 

       739,000

Share premium account

 

    3,684,871

 

    3,693,818

 

    3,693,818

Capital redemption reserve

 

       256,976

 

       256,976

 

       256,976

Cumulative translation reserve

 

       400,985

 

       302,026

 

       494,607

Profit and loss account

 

  12,949,828

 

  11,737,843

 

  12,489,418

Equity attributable to equity holders of the parent

 

  18,031,660

 

  16,729,663

 

  17,673,819

 

 

 

 

 

 

 

Total equity

 

  18,031,660

 

  16,729,663

 

  17,673,819

 

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

unaudited interim results to 30 June 2017

 

 

 

Six months ended

30/06/17

 

Six months ended

30/06/16

 

Year ended 31/12/16

 

 

£

 

£

 

£

Cash flows from operating activities

 

 

 

 

 

 

Profit before tax for the period

 

    1,396,443

 

    1,545,152

 

    2,902,514

Adjustments for:

           

 

 

 

 

 

Finance income       

 

       (30,375)

 

       (26,336)

 

       (48,705)

Depreciation       

 

         77,624

 

         98,966

 

       196,370

Amortisation       

 

       620,878

 

       627,065

 

    1,254,826

Impairment loss       

 

         31,064

 

       499,509

 

       499,509

Loss on disposal of property, plant and equipment

 

                -  

 

                -  

 

       233,840

Share-based payment       

 

         13,611

 

          1,139

 

         13,585

Exchange differences       

 

     (200,228)

 

       272,299

 

         76,461

(Increase)/decrease in inventories       

 

       (94,895)

 

       904,154

 

       534,430

(Increase)/decrease in trade and other receivables       

 

       800,706

 

     (121,913)

 

     (927,530)

Increase/(decrease) in trade and other payables       

 

     (432,426)

 

       528,208

 

       558,815

Cash generated from operations

 

    2,182,402

 

    4,328,243

 

    5,294,115

Tax received/(paid)

 

       (32,395)

 

       120,715

 

       116,142

Net cash generated from operating activities

 

    2,150,007

 

    4,448,958

 

    5,410,257

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

Interest received

 

         30,375

 

         26,336

 

         48,705

Cash released from/(placed on) deposit

 

    1,000,000

 

    1,000,000

 

                -  

Purchases of property, plant and equipment

 

       (56,977)

 

       (43,728)

 

     (138,181)

Proceeds from sale of property, plant and equipment

 

                -  

 

                -  

 

                -  

Purchases of intangible assets

 

  (1,175,613)

 

  (1,214,874)

 

   (2,290,889)

Net cash used in investing activities

 

     (202,215)

 

     (232,266)

 

   (2,380,365)

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

Equity dividends paid

 

     (945,339)

 

     (870,942)

 

   (1,452,689)

Sale/(purchase) of treasury shares

 

                 -  

 

         19,800

 

         51,800

Net cash used in financing activities

 

     (945,339)

 

     (851,142)

 

   (1,400,889)

 

 

 

 

 

 

 

Effects of exchange rate changes on cash and cash equivalents

 

       109,496

 

       (59,372)

 

       270,265

 

 

 

 

 

 

 

Net increase/(decrease) in cash

 

    1,111,949

 

    3,306,178

 

    1,899,268

Cash at beginning of period

 

    6,773,083

 

    4,873,815

 

    4,873,815

Cash at the end of the period

 

    7,885,032

 

    8,179,993

 

    6,773,083

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

unaudited interim results to 30 June 2017

 

 

Share

capital

Share

Premium

Capital

redemption

reserve

Cumulative

translation

reserve

Profit

and loss

account

Total

equity

 

£

£

£

£

£

£

 

 

 

 

 

 

 

Balance at 1 January 2016

739,000

3,693,818

256,976

78,641

11,053,079

15,821,514

 

 

 

 

 

 

 

Profit for the period

-  

-  

-  

-  

1,540,328

1,540,328

Exchange differences on translating foreign operations

-  

-  

-  

223,385

-  

223,385

Total recognised comprehensive income for the period

-  

-  

-  

223,385

1,540,328

1,763,713

 

 

 

 

 

 

 

Share-based payment

-  

-  

-  

-  

1,139

1,139

Deferred tax on share based payment

-  

-  

-  

-  

(5,561)

(5,561)

Dividends paid

-  

-  

-  

-  

(870,942)

(870,942)

Sale of treasury shares

-  

-  

-  

-  

19,800

19,800

Balance at 30 June 2016

739,000

3,693,818

256,976

302,026

11,737,843

16,729,663

 

 

 

 

 

 

 

Profit for the period

-  

-  

-  

-  

1,289,577

1,289,577

Exchange differences on translating foreign operations

-  

-  

-  

192,581

-  

192,581

Total recognised comprehensive income for the period

-  

-  

-  

192,581

1,289,577

1,482,158

 

 

 

 

 

 

 

Share-based payment

-  

-  

-  

-  

12,446

12,446

Deferred tax on share based payment

-  

-  

-  

-  

(701)

(701)

Dividends paid

-  

-  

-  

-  

(581,747)

(581,747)

Purchase of treasury shares

-  

-  

-  

-  

32,000

32,000

Balance at 31 December 2016

739,000

3,693,818

256,976

494,607

12,489,418

17,673,819

 

 

 

 

 

 

 

Profit for the period

-  

-  

-  

-  

1,339,446

1,339,446

Exchange differences on translating foreign operations

-  

-  

-  

(93,622)

-  

(93,622)

Total recognised comprehensive income for the period

-  

-  

-  

(93,622)

1,339,446

1,245,824

 

 

 

 

 

 

 

Share-based payment

-  

-  

-  

-  

13,611

13,611

Deferred tax on share based payment

-  

-  

-  

-  

43,274

43,274

Dividends paid

-  

-  

-  

-  

(945,339)

(945,339)

Sale of treasury shares

-  

(8,947)

-  

-  

9,418

471

Balance at 30 June 2017

739,000

3,684,871

256,976

400,985

12,949,828

18,031,660

 

 

 

NOTES TO THE INTERIM REPORT

 

1.

General information

 

 

The principal activity of Concurrent Technologies Plc and its subsidiaries ("the Group") is the design, development, manufacture and marketing of single board computers for system integrators and original equipment manufacturers.

 

Concurrent Technologies Plc ("the Company") is the Group's ultimate parent company.  It is incorporated and domiciled in Great Britain. Concurrent Technologies Plc shares are listed on the Alternative Investment Market of the London Stock Exchange.

 

The Group's condensed consolidated interim financial statements are presented in pounds sterling (£), which is also the functional currency of the parent company.

 

These condensed consolidated interim financial statements, which are unaudited, have been approved for issue by the Board of Directors on 15th September, 2017.

 

The information relating to the six months ended 30 June 2017 and 30 June 2016 is unaudited and does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The statutory accounts for the year ended 31 December 2016, prepared in accordance with IFRSs (International Financial Reporting Standards) as adopted by the European Union, have been reported on by the Group's auditors and delivered to the Registrar of Companies. The auditors' report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

 

2.

Summary of significant accounting policies

 

2.1

Basis of preparation

 

 

These condensed consolidated interim financial statements are for the six months ended 30 June 2017. They have been prepared in accordance with IAS 34 "Interim Financial Reporting". They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2016, which have been prepared in accordance with adopted IFRSs.

 

The accounting policies applied and methods of computation are consistent with those of the annual financial statements for the year ended 31 December 2016, as described in those financial statements. The accounting policies have been consistently applied to all the periods presented.

 

There are no new IFRSs or IFRIC interpretations that are effective for the first time for the financial period beginning on or after 1 January 2017 that would be expected to have a material impact on the results or financial position of the Group.

 

2.2

Going Concern

 

 

The Directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing these condensed financial statements.

 

2.3

Taxation

 

 

Current tax expense is recognised in these condensed consolidated interim financial statements based on estimated effective tax rates for the full year.

 

3.

Segmental reporting

 

 

The Directors consider that the Group is engaged in a single segment of business, being design, manufacture and supply of high-end embedded computer products, and that therefore the Company has only a single operating segment. The key measure of performance used by the Board to assess the Group's performance is the Group's profit before tax, as calculated under IFRS, and therefore no reconciliation is required between the measure of profit or loss used by the Board and that contained in the condensed consolidated interim financial statements.

 

4.

Earnings per share

 

 

Basic earnings per share is calculated by dividing the profit attributable to ordinary equity holders for the period by the weighted average number of ordinary shares outstanding during the period.

 

Diluted earnings per share is calculated adjusting the weighted average number of ordinary shares outstanding to assume conversion of all contracted dilutive potential ordinary shares. The Company only has one category of dilutive potential ordinary shares, share options.

 

The inputs to the earnings per share calculation are shown below:

 

 

 

 

 

Six months ended

30/06/17

 

Six months ended

30/06/16

 

Year ended 31/12/16

 

 

 

£

 

£

 

£

 

 

 

 

 

 

 

 

 

 

 

Six months ended

30/06/17

 

Six months ended

30/06/16

 

Year ended 31/12/16

 

 

 

No

 

No

 

No

 

Weighted average number of ordinary

shares for basic earnings per share

 

72,718,490

 

72,604,009

 

72,635,976

 

Weighted average number of ordinary  shares for diluted earnings per share

 

72,720,947

 

72,604,490

 

72,638,433

 

 

 

 

 

 

 

 

 

 

5.

Post reporting date events

 

There were no material events subsequent to the end of the interim reporting period that have

not been reflected in these interim financial statements.

 

 

6.

Shareholder Communication


A copy of this interim statement is available from the Company's Registered Office at 4 Gilberd Court, Newcomen Way, Colchester, Essex, CO4 9WN, UK and from the Company's website at www.cct.co.uk.

 

 

 

 


This information is provided by RNS
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Anonymous (not verified) Interim Results for the six months ended 30 Jun 17 26446811 A Mon, 09/18/2017 - 07:00 LSE RNS Results and Trading Reports CNC