RNS Number : 0596V
Concurrent Technologies PLC
04 April 2019
 

4 April 2019

Concurrent Technologies Plc

Results for the year ended 31 December 2018

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 2018.

Financial Highlights
 

·     Revenue for the year increased to £16.6m (2017: £16.2m)

·     Gross profit was £8.7m (2017: £9.0m)

·     Gross margin was 52.2% (2017: 55.4%)

·     EBITDA increased by 5.8% to £4.6m (2017: £4.4m)

·     Profit before tax was £3.0m (2017: £3.0m)

·     Profit after tax increased to £3.0m (2017: £2.8)

·     Dividend increased by 4.5% to 2.30 pence per share for the year (2017: 2.20 pence)

·     Cash in business plus deposits was robust at £7.7m (2017: £8.4m)

 

Operational Highlights

 

·     During 2018, the Group introduced several new high performance embedded computer boards and accessory modules.  These included products based on the 8th generation Intel® Xeon® processor for use in  VME,  CompactPCI® and OpenVPX™ architectures.   As required by many applications, these new products offer support for enhanced security features and most are suitable for both commercial and harsh environments.   

·     Support for additional 3rd party software and hardware products and systems was announced to broaden the Group's product range.  

·   The Group's UK manufacturing line was updated through the addition of a new pick-and-place machine providing additional production capacity and capability.

 

Michael Collins, Chairman of Concurrent Technologies Plc, commented:

 

"The new fiscal year of 2019 has started with a very strong order book giving the Board confidence in the Group's performance for the first half of 2019 and for the year as a whole. New and existing customers continue to require increasing levels of processing performance and additional product features including, in particular, increased security capabilities and encrypted storage.

The Group has and will continue to invest in experienced technical personnel and it is currently recruiting additional senior staff into newly created roles to help broaden its expertise of new technologies and methodologies required for continued growth.  This investment will ensure that the Group has the capabilities to design the products required for next generation projects.  By investing in new skills and expertise, the Group will be able to support our existing customer base with viable upgrade paths, while also providing products suitable for new applications such as Artificial Intelligence and Deep Learning within the vision and surveillance markets, among others."

 

 

 

Enquiries:

 

Concurrent Technologies Plc
Glen Fawcett, Managing Director

 

+44 (0)1206 752 626

 

 

Newgate (Financial PR)
Bob Huxford

Fiona Norman


+44 (0)20 7653 9848

+44 (0)20 3757 6885

 

 

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 Revenue for the year of £16.62m (2017: £16.22m). The Gross Profit was £8.67m (2017: £8.99m) while the gross margin was 52.2% (2017: 55.4%).

Profit before tax was £2.97m (2017: £2.97m) and earnings per share increased to 4.08 pence (2017: 3.79 pence) due to a lower tax charge. EBITDA (measured as Operating Profit plus Depreciation and Amortisation) for the Group in 2018 also increased to £4.65m (2017: £4.39m).

The Group continued its long-term commitment to R&D by investing £3.31m in 2018 (2017: £3.19m), of which £2.44m was capitalised (2017: £2.13m). 

A further investment of £250,000 was made within manufacturing to install a new surface mount production line during 2018.  This surface mount investment both increases production capacity and provides a degree of future proofing as this line can 'place' significantly smaller components than the existing production facilities.

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 were £7.68m (2017: £8.39m).

Operational Highlights 

During 2018, the Group introduced several new high performance embedded computer boards and accessory modules.  These included products based on the 8th generation Intel® Xeon® processor for use in  VME,  CompactPCI® and OpenVPX™ architectures.   As required by many applications, these new products offer support for enhanced security features and most are suitable for both commercial and harsh environments.  In addition, support for additional 3rd party software and hardware products and systems was announced to broaden the Group's product range.   The Group's UK manufacturing line was updated through the addition of a new pick-and-place machine providing additional production capacity and capability.

Future Plans and Outlook

The new fiscal year of 2019 has started with a very strong order book giving the Board confidence in the Group's performance for the first half of 2019 and for the year as a whole.   New and existing customers continue to require increasing levels of processing performance and additional product features including, in particular, increased security capabilities and encrypted storage.

The Group will maintain its policy of investing in R&D to expand the Group's current range of advanced technology products with a particular focus on the OpenVPX™ bus architecture. In addition to boards and associated software the Group will increase its range of development systems, using both its own products and complementary products from third party partners.  These ready to use development systems enable customers to reduce their product development times by focussing on their own areas of expertise to develop specialised applications.

The Group has and will continue to invest in experienced technical personnel and it is currently recruiting additional senior staff into newly created roles to help broaden its expertise of new technologies and methodologies required for continued growth.  This investment will ensure that the Group has the capabilities to design the products required for next generation projects.  Our current markets continue to demand the latest technologies to provide additional processing and networking performance, which also creates a requirement for improved and more complex cooling techniques, especially for harsh environments.  By investing in new skills and expertise, the Group will be able to support our existing customer base with viable upgrade paths, while also providing products suitable for new applications such as Artificial Intelligence and Deep Learning within the vision and surveillance markets, among others.

The Board continues to look for worldwide acquisition opportunities but sees many opportunities to grow the business organically into new market areas by widening our product ranges and further developing relationships with key hardware and software partners.

Dividend

The Board has declared a second interim dividend of 1.35 pence per share (2017: 1.30 pence) which when added to the first interim dividend of 0.95 pence per share (2017: 0.90 pence) will make a total of 2.30 pence per share for the year (2017: 2.20 pence). This is an increase of 4.5% on dividends paid for 2017. The total cost of this second interim dividend amounted to £981,700. As in previous years, the Directors do not intend to recommend a final dividend.

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 21 May 2019 at 2:30pm.

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

 

 

2018

 

2017

CONTINUING OPERATIONS

 

£

 

£

Revenue

 

16,624,151

 

16,222,732

Cost of sales

 

7,950,636

 

7,231,876

Gross profit

 

8,673,515

 

8,990,856

Operating expenses

 

5,788,094

 

6,086,516

Group operating profit

 

2,885,421

 

2,904,340

Finance income

 

88,326

 

65,117

Profit before tax

 

2,973,747

 

2,969,457

Tax

 

5,886

 

213,836

Profit for the year

 

2,967,861

 

2,755,621

 

 

 

 

 

Other Comprehensive Income

 

 

 

 

Items that will be reclassified subsequently to profit or loss:

 

 

 

 

Exchange differences on translating foreign operations

 

43,903

 

(189,150)

Tax relating to components of other comprehensive income

 

-

 

-

Other Comprehensive Income for the year, net of tax

 

43,903

 

(189,150)

Total Comprehensive Income for the year

 

3,011,764

 

2,566,471

 

 

 

 

 

Profit for the period attributable to:

 

 

 

 

Equity holders of the parent

 

2,967,861

 

2,755,621

 

 

 

 

 

Total Comprehensive Income attributable to:

 

 

 

 

Equity holders of the parent

 

3,011,764

 

2,566,471

 

 

 

 

 

Earnings per share

 

 

 

 

Basic earnings per share

 

4.08p

 

3.79p

 

 

 

 

 

Diluted earnings per share

 

4.08p

 

3.79p

 

 

Consolidated Balance Sheet

 

 

As at

 

As at

 

 

31 December

 

31 December

 

 

2018

 

2017

 

 

£

 

£

ASSETS

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

 

704,969

 

482,254

Intangible assets

 

7,990,759

 

7,397,512

Deferred tax assets

 

120,385

 

170,495

 

 

8,816,113

 

8,050,261

Current assets

 

 

 

 

Inventories

 

4,096,576

 

3,222,800

Trade and other receivables

 

3,352,581

 

2,740,335

Current tax assets

 

316,428

 

135,224

Other financial assets

 

-  

 

2,502,281

Cash and cash equivalents

 

7,679,352

 

5,892,304

 

 

15,444,937

 

14,492,944

 

 

 

 

 

Total assets

 

24,261,050

 

22,543,205

 

 

 

 

 

LIABILITIES

 

 

 

 

Non-current liabilities

 

 

 

 

Deferred tax liabilities

 

1,448,012

 

1,473,815

Long term provisions

 

8,183

 

4,097

 

 

1,456,195

 

1,477,912

Current liabilities

 

 

 

 

Trade and other payables

 

2,802,852

 

2,332,599

Short term provisions

 

8,688

 

16,644

 

 

2,811,540

 

2,349,243

 

 

 

 

 

Total liabilities

 

4,267,735

 

3,827,155

 

 

 

 

 

Net assets

 

19,993,315

 

18,716,050

 

 

 

 

 

EQUITY

 

 

 

 

Capital and reserves

 

 

 

 

Share capital

 

739,000

 

739,000

Share premium account

 

3,699,105

 

3,699,105

Capital redemption reserve

 

256,976

 

256,976

Cumulative translation reserve

 

349,360

 

305,457

Profit and loss account

 

14,948,874

 

13,715,512

Equity attributable to equity holders of the parent

 

19,993,315

 

18,716,050

 

 

 

 

 

Total equity

 

19,993,315

 

18,716,050

 

 

Consolidated Cash Flow Statement

 

 

Year to

 

Year to

 

 

31 December

 

31 December

 

 

2018

 

2017

 

 

£

 

£

Cash flows from operating activities

 

 

 

 

Profit before tax for the period

 

2,973,747

 

2,969,457

Adjustments for:

 

 

 

 

Finance income       

 

(88,326)

 

(65,117)

Depreciation       

 

219,455

 

194,529

Amortisation       

 

1,542,749

 

1,294,457

Impairment loss       

 

303,030

 

286,888

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

 

(1,000)

 

(3,750)

Share-based payment       

 

(77,595)

 

27,448

Exchange differences       

 

56,016

 

(110,755)

Decrease/(increase) in inventories       

 

(873,776)

 

17,055

(Increase)/decrease in trade and other receivables       

 

(612,246)

 

587,294

Increase/(decrease) in trade and other payables       

 

466,383

 

(487,953)

Cash generated from operations

 

3,908,437

 

4,709,553

Tax received

 

(183,524)

 

(83,808)

Net cash generated from operating activities

 

3,724,913

 

4,625,745

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

Interest received

 

88,326

 

65,117

Cash released from/(placed) on deposit

 

2,502,281

 

(1,502,281)

Purchases of property, plant and equipment (PPE)

 

(442,280)

 

(267,855)

Proceeds from sale of PPE

 

1,000

 

3,750

Capitalisation of development costs and purchases of intangible assets

 

(2,438,917)

 

(2,133,046)

Net cash used in investing activities

 

(289,590)

 

(3,834,315)

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

Equity dividends paid

 

(1,636,163)

 

(1,599,804)

Exercise of share options

 

-

 

-

Purchase of treasury shares

 

-

 

-

Net cash used in financing activities

 

(1,636,163)

 

(1,599,804)

 

 

 

 

 

Effects of exchange rate changes on cash and cash equivalents

 

(12,112)

 

(72,405)

 

 

 

 

 

Net increase/(decrease) in cash

 

1,787,048

 

(880,779)

Cash at beginning of period

 

5,892,304

 

6,773,083

Cash at the end of the period

 

7,679,352

 

5,892,304

 

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 2017

 

     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

Adjustment for IFRS 15

 

                -  

 

                -  

 

                -  

 

                -  

 

(34,399)

 

(34,399)

Balance at 31 December 2017

 

     739,000

 

3,699,105

 

     256,976

 

305,457

 

13,681,113

 

18,681,651

Profit for the period

 

                -  

 

                -  

 

                -  

 

                -  

 

2,967,861

 

 

2,967,861

Exchange differences on translating foreign operations

 

                -  

 

                -  

 

                -  

 

43,903

 

                  -  

 

43,903

Total comprehensive income for the period

 

                -   

 

                -  

 

                -  

 

43,903

 

2,967,861

 

3,011,764

Transactions with owners:

 

 

 

 

 

 

 

 

 

 

 

 

Share-based payment

 

                -  

 

                -  

 

                -  

 

                -  

 

(77,595)

 

(77,595)

Deferred tax on share based payment

 

                -  

 

                -  

 

                -  

 

                -  

 

(20,741)

 

(20,741)

Dividends paid

 

                -  

 

                -  

 

                -  

 

                -  

 

(1,636,163)

 

(1,636,163)

Transfer of treasury shares

 

                -  

 

                -  

 

                -  

 

                -  

 

                -    

 

                -  

Balance at 31 December 2018

 

     739,000

 

3,699,105

 

     256,976

 

349,360

 

14,948,874

 

19,993,315

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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, except for IFRS 9 and IFRS 15, 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 2017. The Directors have opted to adopt the modified retrospective method of transition and have applied IFRS 15 to those contracts that are not completed as at 1st January 2018, the impact on the Profit and loss account is £34,399.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 2018 or 2017, but is derived from those accounts. Statutory accounts for 2017 have been delivered to the Registrar of Companies and those for 2018 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 2017 or 2018 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 2018 of 72,718,490 (2017: 72,718,490) after adjustment for treasury shares on the profit after tax for 2018 of £2,967,861 (2017: £2,755,621). The calculation of diluted earnings per share incorporates 2,457 Ordinary Shares (2017: 3,504) 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 21 May 2019 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.

 


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Anonymous (not verified) Results for the year ended 31 December 2018 28857146 A Thu, 04/04/2019 - 07:00 LSE RNS Results and Trading Reports CNC