Concurrent Technologies Share Discussion Threads

[simon gordon] 19/9/2024 14:10

New brand name, new image and new website:

[cfro] 17/9/2024 17:50

I couldn't agree more, i have a few holdings myself that i can trust enough just to leave well alone for the long-term and let the management work their magic. This is one..

Sounds like it might be a new product in the systems space but let's see..

[philly cheesesteak] 17/9/2024 16:40

Posted on LinkedIn an hour ago

hxxps://www.linkedin.com/company/concurrent-technologies-plc/posts/

"Something's cooking... stay tuned for what’s coming 👀👀👀"

It's lovely when a share holding gives you that much conviction that you cease to care about day to day movements, a true sign that it's passed the test and become a long term holding.

[gopher] 11/9/2024 17:23

Agree Miles is very impressive and the company has all the credentials of a small cap growth stock that will have no problems with brokers forecasts. Still reasonably priced as I see more institutions wanting to come on board and retail shareholders would be unwise to sell out now building blocks for growth in place as Miles said.

[t-raider] 11/9/2024 15:52

Rollercoaster at the moment... long term hold so along for the ride.

[philly cheesesteak] 11/9/2024 10:22

Yes, the market makers have successfully filled the gap on the chart which was created by the results release. Given the broker upgrade to 197p & excellent presentation last week I think we should be enjoying new all time highs very soon.

[harrywilliam] 11/9/2024 09:03

Looks like next leg up about to start?

[simon gordon] 11/9/2024 07:30

Interesting analysis of Intel's future...

Aswath Damodaran - 10/9/24

Dealing with Decline: Intel, Walgreens and Starbucks put to the test!

If you accept the notion that companies age and move through the life cycle, managing and investing becomes most challenging for companies in decline. Faced with that prospect, companies often go into denial, resort to desperation or become walking dead companies. Some accept aging gracefully, a few revamp themselves and even fewer find reincarnation. In this session, I look at three high profile companies that have fallen from market grace - Intel, Walgreens and Starbucks - and examine where they fall in the life cycle, and what choices make the best sense for them




Based on Aswath's model CNC is a reincarnation.

[nchanning] 09/9/2024 14:20

Interesting little tidbit that these results would have been even better without a political delay in US defense procurement . The loss making Systems business is also detracting from current financials but sounds like it has the potential to become a very significant business in its own right .It really is a remarkable achievement to go from averaging 1 design win a year to 8 just in the first half Miles really does come across as an exceptional CEO who has been brave enough to totally transform the business in just a few years

[joe say] 09/9/2024 09:36

A good write up imo having been on the recent investor call myself and reviewed the cavendish note.

Clearly the company has plans on acquiring which to me is perhaps the next major milestone (beyond the ongoing contract wins)

[hastings] 09/9/2024 09:19

A bit late, but write up that will perhaps be of interest.https://martinflitton1.wixsite.com/privatepunter/post/concurrent-technologies-continues-on-the-growth-path-09-09-24

[igoe104] 07/9/2024 10:26

CNC mentioned briefly on the processive podcast.

[simon gordon] 07/9/2024 08:18

From the 20-minute mark of the IMC, I took the text and ChatGPT polished the grammar:

"The example on the left represents our embryonic systems business. This is a European company with a significant presence in the U.S. defense sector. I met with the divisional leadership of this business unit in Washington, DC, some time ago. They expressed a strong interest in using us as their hardware provider. They design and manufacture electronic defense systems, including highly capable electronic boxes.

Their goal is to reduce the time and resources spent on hardware design and manufacturing, allowing them to focus on software development, which they consider their key value to their customers. As a result, they would like to see us take on more responsibility for hardware design and manufacturing at the system level.

They have already paid us $300K to design a custom system, replacing their previous provider, with whom they were dissatisfied. We now expect to receive over $6 million in orders for this initial program, which presents a significant opportunity to prove our capabilities. We hope this will lead to further collaboration, supporting their strategy, which aligns closely with ours."

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Original text:

The example on the left there is our embryonic systems business this is a European but with a large footprint in the US defense Prime I met with the divisional leadership of this business unit in Washington DC some time ago and it is their desire to increasingly use us as their Hardware provider they design a manufacture electronic defense Electronics boxes very capable uh they wish to diminish the amount of time and resource they use on Hardware design and manufacturer instead focusing on software where they develop applications which for them are the value they bring to their customer and therefore they'd like to see us doing more of the hardware design and manufacturer at system level they've paid us 300K to design a custom system for them this displaces their current incumbent with whom they were not satisfied and we now expect $6 million plus of orders of this ini program work with them which is very much an opportunity for us to prove our credentials and then move to hopefully providing greater support to them as they pursue their strategy which is also coincident with ours.

[philly cheesesteak] 06/9/2024 17:16

He just seems like such a fantastically well rounded professional. You have to believe he is 3 years into a 10 year project with CNC, given the progress so far & the design wins that are locked in for 2026-27 onwards, you wonder where this company could get to by the end of the decade.

If they keep winning 10+ major design selections per annum & 80% of them come to fruition, then by 2030 they would have be supplying product into over 50 major design programs.

Re. fund managers, I've watched a lot of the Paul Hill Vox Markets interviews, they are great for picking up little snippets that you wouldn't learn elsewhere. Not one has discussed CNC. I take this is an extremely bullish sign.

[igoe104] 06/9/2024 15:10

Miles is excellent at presentations. He doesn't waffle on about numbers that investors have already seen, or like others directors do in their presentations. Hes very much to the point, just how I like it. He reminds me of Nat Rothschild the chairman at Volex, another company i hold...

[cfro] 06/9/2024 14:33

Agreed, just got round to catching up with it and was v interesting. Some great questions very thoroughly answered.
Loved the one about whether they are now being recognised in the industry to which the answer was yes..

[igoe104] 06/9/2024 13:32

Interesting Investor meet presentation.
I'll definitely be going to the agm if a factory tour is included next year. I can only see these being taken over as they a small company being a big nuisance to big companies. Hopefully not for few years though..

[philly cheesesteak] 04/9/2024 21:05

As I said last month, the average H1 / H2 revenue split over the last 4 years has been 42/58, last year was the most pronounced with a 38/62 split followed by 40/60 in 2022.

Taking into account the updated Cavendish forecast for £36m we have a new prediction of 47/53 for this year, which based on the above comments & recent history still looks very prudent.

Matching the 2022 split would see full year revenue of £41.5m, whilst 2023 would see £44m.

These may seem outlandish numbers, however consider that last September Cavendish were forecasting FY23 revenue of £27m and it reached £31.7m, which was a 17% beat. A similar performance would see 2024 hit £42m.

Interesting to see where we land.

[philly cheesesteak] 04/9/2024 20:29

A couple of bits that provide clues on the potential second half performance;

From the Cavendish note;

"Management anticipates a very active period of shipments for the business towards during the second half of the year, especially Q4/24."

From the investors chronicle;

"Revenue is expected to be weighted to the second half. “It’s quite normal for us to do a little bit more in the second half of the year, just by how things work in defence,” said chief financial officer Kim Garrod."



I did laugh at the IC saying "However, given the current expansionary phase, we will monitor the balance sheet to see how effectively the group manages working capital." - they are experts at finding excuses not to buy into small caps.

[philly cheesesteak] 03/9/2024 20:06

I'm in the opposing camp on dividends as I don't think a growth company should pay one. They should be directing all of their free cash flow into product innovation, key new hires & selective M&A in order to deliver ROIC & equity growth.

Only mature companies should pay dividends and they should come from genuine spare cash, the £8m that CNC had on the balance sheet at 30/06 is clearly working capital + some reasonable buffer.

Miles has decided to appease everyone by paying slightly more than a token dividend and I hope it stays that way until Concurrent are in the FTSE250, maybe even longer.

Bottom line - I'm here for the capital gains, if I want a dividend then I've got something like GAW.

[valhamos] 03/9/2024 14:10

cfro - but the dividend yield is higher than competitors such as Curtis Wright and Ametek. I much prefer to invest in growing companies and much prefer the payout ratio not to exceed 30% (CNC is currently 20%) as the critical factor for success is the ability to deploy retained profits to grow the company even more.

[cfro] 03/9/2024 13:33

One reason why the BoD are stingy with the dividend (or pay no interim dividend) is that they do not own any shares themselves nor are they active buyers in the market. Apart from the chairman (a far while ago now) neither the CEO, the FD or any Non-exec have bought any, so no wonder why they are not worried about paying a dividend..

[nocton] 03/9/2024 08:44

Highlighted in The Times today.

[simon gordon] 02/9/2024 21:07

Good explanation of why innovation and surprise are vital ingredients to raise a stock price. Starts at the 25-minute mark:

The Compound - 29/7/24

"Surprise" is the Most Powerful Force in the Stock Market




Miles is now building a track record of surprising the market and the Systems division hasn't even got going yet.

I hope the BoD stays stingy with the dividend and focuses on innovation, growth and the share price.