RNS Number : 7137J
Concurrent Technologies PLC
04 April 2018
 

4 April 2018

Concurrent Technologies Plc

Results for the year ended 31 December 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 results for the year to 31 December 2017.

Financial Highlights

·     Turnover of £16.2m (2016: £16.4m)

·     Gross profit increased by 1.0% to £9.0m (2016: £8.9m)

·     Gross margin increased to 55.4% (2016: 54.2%)

·     EBITDA increased by 2.1% to £4.4m (2016: £4.3m)

·     Profit before Tax increased by 2.3% to £3.0m (2016: £2.9m)

·     Dividend increased by 5% to 2.20 pence per share for the year (2016: 2.10 pence)

·     Cash in business plus deposits increased to £8.4m (2016: £7.8m)

 

Operational Highlights

 

·      Several new high performance embedded computer boards and accessory boards as well as modules were released during 2017. These included the new generation quad-core Intel® Xeon® processors.

·      In addition to providing the latest high performance and low power units across all of its open architectures for new applications and new customers, the Group's product portfolio allows for practical upgrade paths for its existing long life cycle customers.

 

Michael Collins, Chairman of Concurrent Technologies Plc, commented:

 

"The future outlook for the Group continues to be encouraging as both new and existing customers increasingly require more sophisticated boards and solutions.

The key to continued success is to expand the Group's range of products, with a particular focus on the OpenVPX™ bus architecture. In addition to boards and associated software the Group has recently started to provide development systems based on the OpenVPX™ and MicroTCA® architectures. These development systems will enable users to reduce their own product development times.

Competitive advantage can be maintained through continued R&D investment and constant expansion of the Group's range of advanced technology products, in particular targeting products and development systems for harsh environments and expanding the development of additional software and firmware products. The Group will continue to recruit additional engineers in the UK, USA and India to enable this development.

The Board continues to look for worldwide acquisition opportunities but sees many opportunities to grow the business organically into new market areas without taking unacceptable risks.

Sales and new opportunities arising this year have been encouraging and the Group's current healthy order book gives the Board confidence in the Group's performance for the full year."

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 22 May 2018 at 2:30pm.

 



Enquiries:

 

Concurrent Technologies Plc
Glen Fawcett, CEO

 

+44 (0)1206 752 626



Newgate (Financial PR)
Bob Huxford

James Browne


+44 (0)207 653 9848

+44 (0)207 653 9844



Cenkos Securities plc (NOMAD)
Neil McDonald

Beth McKiernan


+44 (0)131 220 9771

+44 (0)131 220 9778

 

 



Extracts from the Strategic Report

Review of Operations

The Group achieved sales of £16.22m (2016: £16.42m). The gross profit increased to £8.99m (2016: £8.89m) while the gross margin for the year improved to 55.4% (2016: 54.2%).

Profit before tax improved to £2.97m (2016: £2.90m) and the earnings per share was 3.79 pence (2016: 3.90 pence). EBITDA (measured as Operating Profit plus Depreciation and Amortisation) for the Group in 2017 also increased to £4.39m (2016: £4.31m).

The Group continued its long-term investment in R&D and invested £3.19m in 2017 (2016: £3.39m), of which £2.13m was capitalised (2016: £2.27m).

The Group continues to have no borrowings and again paid increased dividends during the year. Its cash balances plus short to medium term cash deposits at the year-end improved to £8.41m (2016: £7.78m).

Operational Highlights 

Several new high performance embedded computer boards and accessory boards as well as modules were released during 2017. These included the new generation quad-core Intel® Xeon® processors. In addition to providing the latest high performance and low power units across all of its open architectures for new applications and new customers, the Group's product portfolio allows for practical upgrade paths for its existing long life cycle customers.

Future Plans

The future outlook for the Group continues to be encouraging as both new and existing customers increasingly require more sophisticated boards and solutions.

The key to continued success is to expand the Group's range of products, with a particular focus on the OpenVPX™ bus architecture. In addition to boards and associated software the Group has recently started to provide development systems based on the OpenVPX™ and MicroTCA® architectures. These development systems will enable users to reduce their own product development times.

Competitive advantage can be maintained through continued R&D investment and constant expansion of the Group's range of advanced technology products, in particular targeting products and development systems for harsh environments and expanding the development of additional software and firmware products. The Group will continue to recruit additional engineers in the UK, USA and India to enable this development.

The Board continues to look for worldwide acquisition opportunities but sees many opportunities to grow the business organically into new market areas without taking unacceptable risks.

Sales and new opportunities arising this year have been encouraging and the Group's current healthy order book gives the Board confidence in the Group's performance for the full year.

Dividend

The Board has declared a second interim dividend of 1.30 pence per share (2016: 1.30 pence) which when added to the first interim dividend of 0.90 pence per share (2016: 0.80 pence) will make a total of 2.20 pence per share for the year (2016: 2.10 pence). This is an increase of 4.8% on dividends paid for 2016. The total cost of this second interim dividend amounted to £945,340. As in previous years, the Directors do not intend to recommend a final dividend.

Annual General Meeting

The Annual General Meeting this year will be held on 22 May 2018.

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

 



Consolidated Statement of Comprehensive Income



Year to


Year to



31 December


31 December



2017


2016

CONTINUING OPERATIONS


£


£

Revenue


16,222,732


16,423,978

Cost of sales


7,231,876


7,529,867

Gross profit


8,990,856


8,894,111

Operating expenses


6,086,516


6,040,302

Group operating profit


2,904,340


2,853,809

Finance income


65,117


48,705

Profit before tax


2,969,457


2,902,514

Tax


213,836


72,609

Profit for the year


2,755,621


2,829,905






Other Comprehensive Income





Items that will be reclassified subsequently to profit or loss:





Exchange differences on translating foreign operations


(189,150)


415,966

Tax relating to components of other comprehensive income


-


-

Other Comprehensive Income for the year, net of tax


(189,150)


415,966

Total Comprehensive Income for the year


2,566,471


3,245,871






Profit for the period attributable to:





Equity holders of the parent


2,755,621


2,829,905






Total Comprehensive Income attributable to:





Equity holders of the parent


2,566,471


3,245,871






Earnings per share





Basic earnings per share


3.79p


3.90p






Diluted earnings per share


3.79p


3.90p

 



Consolidated Balance Sheet



As at


As at



31 December


31 December



2017


2016



£


£

ASSETS





Non-current assets





Property, plant and equipment


482,254


414,209

Intangible assets


7,397,512


6,846,520

Deferred tax assets


170,495


112,128



8,050,261


7,372,857

Current assets





Inventories


3,222,800


3,239,855

Trade and other receivables


2,740,335


3,327,629

Current tax assets


135,224


93,156

Other financial assets


2,502,281


1,000,000

Cash and cash equivalents


5,892,304


6,773,083



14,492,944


14,433,723






Total assets


22,543,205


21,806,580






LIABILITIES





Non-current liabilities





Deferred tax liabilities


1,473,815


1,291,468

Long term provisions


4,097


6,699



1,477,912


1,298,167

Current liabilities





Trade and other payables


2,332,599


2,810,655

Short term provisions


16,644


23,939

Current tax liabilities


-  


 -  



2,349,243


2,834,594






Total liabilities


3,827,155


4,132,761






Net assets


18,716,050


17,673,819






EQUITY





Capital and reserves





Share capital


739,000


739,000

Share premium account


3,699,105


3,693,818

Capital redemption reserve


256,976


256,976

Cumulative translation reserve


305,457


494,607

Profit and loss account


13,715,512


12,489,418

Equity attributable to equity holders of the parent


18,716,050


17,673,819






Total equity


18,716,050


17,673,819

 



Consolidated Cash Flow Statement



Year to


Year to



31 December


31 December



2017


2016



£


£

Cash flows from operating activities





Profit before tax for the period


2,969,457


2,902,514

Adjustments for:





Finance income       


(65,117)


(48,705)

Depreciation       


194,529


196,370

Amortisation       


1,294,457


1,254,826

Impairment loss       


286,888


499,509

Loss/(profit) on disposal of property, plant and equipment (PPE)


(3,750)


233,840

Share-based payment       


27,448


13,585

Exchange differences       


(110,755)


76,461

Decrease/(increase) in inventories       


17,055


534,430

(Increase)/decrease in trade and other receivables       


587,294


(927,530)

Increase/(decrease) in trade and other payables       


(487,953)


558,815

Cash generated from operations


4,709,553


5,294,115

Tax received


(83,808)


116,142

Net cash generated from operating activities


4,625,745


5,410,257






Cash flows from investing activities





Interest received


65,117


48,705

Cash released from/(placed) on deposit


(1,502,281)


-

Purchases of property, plant and equipment (PPE)


(267,855)


(138,181)

Proceeds from sale of PPE


3,750


-

Capitalisation of development costs and purchases of intangible assets


(2,133,046)


(2,290,889)

Net cash used in investing activities


(3,834,315)


(2,380,365)






Cash flows from financing activities





Equity dividends paid


(1,599,804)


(1,452,689)

Exercise of share options


-


51,800  

Purchase of treasury shares


-


-

Net cash used in financing activities


(1,599,804)


(1,400,889)






Effects of exchange rate changes on cash and cash equivalents


(72,405)


270,265






Net increase/(decrease) in cash


(880,779)


1,899,268

Cash at beginning of period


6,773,083


4,873,815

Cash at the end of the period


5,892,304


6,773,083

 

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 2016


     739,000


 3,693,818


     256,976


78,641


11,053,079


15,821,514














Profit for the period


                -  


                -  


                -  


                -  


2,829,905


2,829,905

Exchange differences on translating foreign operations


                -  


                -  


                -  


415,966


                  -  


415,966

Total comprehensive income for the period


                -   


                -  


                -  


415,966


2,829,905


3,245,871

Transactions with owners:













Share-based payment


                -  


                -  


                -  


                -  


13,585


13,585

Deferred tax on share based payment


                -  


                -  


                -  


                -  


(6,262)


(6,262)

Dividends paid


                -  


                -  


                -  


                -  


(1,452,689)


(1,452,689)

Purchase of treasury shares


                -  


                -  


                -  


                -  


51,800


51,800

Balance at 31 December 2016


     739,000


 3,693,818


     256,976


494,607


12,489,418


17,673,819














Profit for the period


                -  


                -  


                -  


                -  


2,755,621


2,755,621

Exchange differences on translating foreign operations


                -  


                -  


                -  


(189,150)


                  -  


(189,150)

Total comprehensive income for the period


                -  


                -  


                -  


(189,150)


2,755,621


2,566,471

Transactions with owners:













Share-based payment


                -  


                -  


                -  


                -  


27,448


27,448

Deferred tax on share based payment


                -  


                -  


                -  


                -  


48,116


48,116

Dividends paid


                -  


                -  


                -  


                -  


(1,599,804)


(1,599,804)

Transfer of treasury shares


                -  


5,287  


                -  


                -  


(5,287)  


                -  

Balance at 31 December 2017


     739,000


3,699,105


     256,976


305,457


13,715,512


18,716,050














 

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 2016. 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 2017 or 2016, but is derived from those accounts. Statutory accounts for 2016 have been delivered to the Registrar of Companies and those for 2017 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 2016 or 2017 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 2017 of 72,718,490 (2016: 72,635,976) after adjustment for treasury shares and any adjustment made as a consequence of the Company having issued no Ordinary Shares during 2017 (2016: nil) and on the profit after tax for 2017 of £2,755,621 (2016: £2,829,905). The calculation of diluted earnings per share incorporates 3,504 Ordinary Shares (2016: 2,457) 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 22 May 2018 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.gocct.com.

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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Anonymous (not verified) Results for the year ended 31 December 2017 27280996 A Wed, 04/04/2018 - 07:00 LSE RNS Results and Trading Reports CNC