Concurrent Technologies Share Discussion Threads

[tom111] 08/5/2024 12:36

Again a couple what appears to nice buys but not too sure maybe someone else can confirm

[hastings] 07/5/2024 10:25

Rather nice 58k buy this morning!

[albanyvillas] 06/5/2024 16:12

Forecasts - do they pay any tax

[earwacks] 06/5/2024 16:11

I don’t think any of these platforms are worth the air they are written on. They just buy data in which is as you say out of date. Just watch the RNS feed. lSE own site, not to be confused with the chat site is excellent. It lists the days trades and has broker research. Not always straight forward to access. Vox markets are good for fund manager interviews and then of course we have Hastings’ Private Punters Blog which is excellent with in depth director interviews. Put the annual fee into buying shares, much better value.

[valhamos] 06/5/2024 15:41

Looks like Sharescope is behind the times - it is still using the 2022 annual results 1.35p eps instead of the 2023 results 4.85p eps.

[hastings] 06/5/2024 15:37

Not sure how that's arrived at!PE for the current year with EPS is circa 20 falling to 17 and 14 in subsequent years.However, Broker has cited growth numbers as being conservative, so it's quite possible that looking at the 2026 numbers the shares are far from expensive given the growth potential.

[dgwinterbottom] 06/5/2024 15:11

Having just looked at the Sharescxpe finance screen following the results and recent share price increase it currently shows a p/e of 75.6, whilst I am an enthusiast with this share that does seem very high?

[hastings] 06/5/2024 10:11

Interesting thought's Simon. Given they are actively seeking a new (more suitable) facility for Philips, I suspect they're anticipating the hoped for ramp up in business over there.

[simon gordon] 06/5/2024 10:07

Will they eventually need to phase move from the current Colchester facility to a larger one close to hand? Or mitigate risk by operating a second UK manufacturing facility? Maybe the easiest way is to do Boards in California to a revenue level of £40m per annum.

Cenkos - 26/9/22:

There is no short to medium-term requirement to increase manufacturing capacity in the UK, with the facility at Colchester capable of delivering over £36m or revenue at present. This could be extended further by moving to a third shift per day, though this would step into overnight manufacturing.

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In the UK Abaco Systems has one manufacturing facility in Towcester and an innovation center in Edinburgh.

Abaco Systems:

We rely on a highly experienced team of 750+ professionals with global reach.

Huntsville, AL
(Redstone Gateway)
Headquarters & Engineering Innovation Center

Huntsville, AL (South)
US Manufacturing Site

Austin, TX
DSP Innovation Center

Wilmington, MA
HPEC Innovation Center

Towcester, UK
European Headquarters & Manufacturing Site

Edinburgh, UK
Networking Innovation Center

[earwacks] 06/5/2024 09:39

I didn’t start the fire
It was always burning since the world was turning. Arthur Brown 81 and still crazy. Actually start the fire might have been Billy Joel. Good way to spend a bank holiday instead facts and figures

[deanowls] 06/5/2024 08:25

I once put out a decent size fire in a building. Didn’t even win the employee of the month lol.

Rumors I started it were false!

[hastings] 05/5/2024 21:38

Crazy old world, shades of Arthur Brown!

[simon gordon] 05/5/2024 20:42

It does look like the Colchester facility is on a modern business park. I was once in a mining company where a generator blew up and cost millions. ASOS had a warehouse which caught fire next to the M1, share price collapsed, was a actually a brilliant buy point. No doubt CNC are rigorous about fire prevention. In business, you need your luck.

[earwacks] 05/5/2024 19:33

Good evening Simon. Thanks for that! Colchester does have some rickety old wooden buildings. Hopefully not one of them. I used to have nightmares about my workshop burning down. It was a rickety old wooden building but not in Colchester. We had a wood burner, we were knee deep in wood shavings most of the time and my partner smoked roll ups! Ocado have had a few problems in the fire department in their high tech environment. Joking aside that must be a worry for many businesses.

[earwacks] 05/5/2024 06:56

Useful addition thanks Hastings. I had another wade through the 17 page report and the potential here does look very good. Whilst I’m not totally aware of major risk factors other than the usual geopolitical conflicts, any of which could turn on a pin ( it’s impossible to determine how psycho the psychos really are). Kim Jong Un’s TikTok singing offensive is one of the more sinister developments recently. Supply chain, although improved is still of concern especially chip manufacturing, the China /Taiwan relations. Aside from that I think it’s not unreasonable to deduce that the 65 percent potential upside is the conservative bit!

[hastings] 04/5/2024 09:01

A few further aspects of the business worth recapping and focusing on.
The total available market space has shifted considerably from the $86bn in 2020 to a forecast $226bn by the end of next year.
Obviously, CNC remains a small player in the vast space, but it provides for a glimpse of the huge growth potential, so plenty to aim for.

Within that, design wins can really propel the business as evidenced by a US defence airborne mission computer win, where the typical lifetime (5-8 years) value can be $30m plus with increased margins over time.
Having successfully secured 8 major design wins the majority of which are in the US and where the collective lifetime value is a minimum of $130m, then continued traction should support the current premium rating or lead to upgrades in my view.

Securing its first ever process instrumentation and control systems win, there should be more to follow given that the global market there is worth an estimated $223bn and where despite being served by the major blue chip players, provides for significant opportunities for the likes of CNC.

Headcount at the company has increased by 18% over the last year which sees the boards division able to support annual revenue of £40m, which is likely to scale further northwards, given the market spend and CNC's ambitious growth plans.

There aren’t too many opportunities out there that provide for such strong organic growth opportunities, so there is no reliance on further acquisitions which will only come at the right time and price.
Looking at the Philips purchase it could prove to be a steal, particularly as there have been no issues that often accompany such a buy and it has been good to hear that everything progressed well and continues to do so.
Importantly, from a strategic aspect, the US defence market is a seriously hard nut for outsiders to crack, so given that CNC was already an accepted and established player, the Philips buy should only serve to further enhance the opportunities and scale going forward.
Clearly exciting times here and no doubt there will be further news flow as the year progresses.

[earwacks] 03/5/2024 17:21

Ace. Thanks for that vprt. Looks a really good site and proves my point about stockopedia. The info they have on cnc was available in their update in January 2023. So actually 16 months out of date. The results confirmed may 1st were available in January 2024. Obviously there is a slight tweaking when the results are published up to 4 months later, but by and large how do we know how any of the figures Stockopedia use are current or over a year behind. Will definitely look into sharepad

[vprt] 03/5/2024 15:48

SharePad is up to date already FYI.

[earwacks] 03/5/2024 14:57

Another thing not wishing to attack or upset anybody. Stockopedia still have revenue for Cnc at 18 million. If that’s wrong then all the other statistics and traffic lights and ratings are also out of date. Be interested to see how long it takes to update that information. In this hi tech world you would think it could be a bit quicker. It has been months out of date in the past

[hastings] 03/5/2024 14:39

Agreed. I remember when I first spoke with him soon after coming on board. I asked for his immediate observations which included CNC having the potential to being a substantial business along with having underserved and underscored in the UK.I think he's delivering on both counts.I'll try when I can, to post some other positives that I just didn't manage to include in my piece. On the market and growth potential etc.

[earwacks] 03/5/2024 14:28

Hastings. flash report May 1st from Cavendish team at the bottom of cnc trades on lSE. I thought it was Miles who was being conservative. Cnc have always been quite canny about forecast always just beating them as far as I can remember until their mini crisis. Well done Mark Cubbit too for finding Miles at such a crucial time. Certainly came up trumps there, absolute star. To me this is one of the more interesting stories on AIM.

[hastings] 03/5/2024 13:29

Haven't seen another note Earwacks, be interested to know who else is covering.For me, the CEO being comfortable with those 2026 numbers and Cavendish pointing to being conservative on their growth figures suggests risk is very much skewed to the upside.

[earwacks] 03/5/2024 12:49

House broker have a £1.65 pt forecast to 2026. I saw another one saying it was a hold. I think that is fair on these results. So maybe at a consolidation point till the next news. That’s the tricky bit, wait for the news and the horse has bolted. The house also say it is worthy of a premium to sector which as we know is one of the hot ones right now. We also know they are very busy building the contracts book. £1.65 is a 65 per cent rise to todays share price over 2 years. So sit back and enjoy the ride, maybe add a few as and when. I’m a bit stuffed at the moment. Time to look at what to sling out maybe

[earwacks] 02/5/2024 09:30

Yes excellent write up Hasting.48 views already! Shows encouraging interest. One other point that occurred to me about the generous remuneration, is that commitment and incentive works both ways. Hopefully he wont get head hunted for a while at any rate! Miles is clearly a very driven capable CEO who exudes enthusiasm and confidence and is a great communicator and organiser. He could sell me anything! Hopefully we will break the magic £100,000 mc before too long which might gain some further traction with bigger backers. Dont know about everyone else but I find it increasingly hard to find stock that you could reasonably expect to hand on to grandkids. Remember cnc started in 1986 I believe. Great job Hastings, many thanks and well done.