Concurrent Technologies Share Discussion Threads

[simon gordon] 30/11/2023 07:48

Morning Hastings,

This caught my eye from your exchange:

The trend in the UK, which historically hasn’t really featured for CNC looks set to continue and gather further momentum as the CEO told me that upcoming, there are some quite large programmes.


“Let’s see whether we get a position on them in the short term, but, it could be that the five million order intake this year is dwarfed by the potential of the future".

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With a supply of components Abaco Systems did £106.6m t/o in 2020. That was filed at Companies House. You can't tell from the filing if that is just UK sales or for Europe.

What is more relaxing about this investment is that you are not going to experience a CLX meltdown where orders can fall off a cliff. The quality of the earnings should be reflected in the multiple going forward as the order book expands.

Cheers!

[joe say] 30/11/2023 07:31

Thanks too Hastings - great write up and analysis

Suspect this could be an eventual UK flyer off to the good old US of A

[hastings] 30/11/2023 07:17

Thanks for the positive comments, appreciated as always.For me, I think the UK performance has been extremely impressive and is indicative of the huge potential moving forwards.Not merely here, but the US which provides massive opportunities for both aspects of the business.

[salonie] 29/11/2023 23:13

Thanks Hastings, great feedback and appreciate the link to your blog!

[somerset lad] 29/11/2023 14:49

An excellent write up, thank you Hastings.

[earwacks] 29/11/2023 14:28

Thanks Hastings. Got in an email. Interesting comment about pipelines. I can think one other company that has never delivered on that after years of pipe dreams. Not the case here. They are rightly excited and pleased with themselves. They have achieved a huge amount in a fairly short time under extreme circumstances.It is strange how slowly CNC grew since its inception in 1986! Great piece by you too. Talk a lot more sense than Stockopedia manages sometimes.

[hastings] 29/11/2023 14:25

Https://martinflitton1.wixsite.com/privatepunter/post/concurrent-heading-the-right-way-29-11-23

[hastings] 29/11/2023 13:41

Great catch up earlier.Hopefully get something up this pm or tomorrow morning for interest.

[hastings] 28/11/2023 17:05

Of course Simon!

[simon gordon] 28/11/2023 16:27

Hi Hastings,

Could you ask Miles about how the sales pipeline is developing for a multi-million pound Systems contract.

I think when/if they start arriving it could move the share to a higher forward rating, say 20x.

20x 2025 = 120p. Maybe a target for this time next year.

Cavendish - 27/11/23:

"The strategy is to continue to add similar levels of design-in wins each year, layering more and more product LTV. For context, another 4 years of similar scale design-in success to FY23would represent a cumulative c£500m of product LTV, underpinning significant levels of expected revenue in future periods. That is before we factor in the longer-term and equally significant revenue potential from the Systems business. As we have stated before, we believe that Concurrent Technologies is firmly on the path towards becoming a materially larger business."

[earwacks] 28/11/2023 08:20

Slightly surprised by Stockopedia guys stance on CNC yesterday ‘gushing and over excited update’ would have preferred more caution. Consensus revenue up a third and ‘inline’ profits up 9 fold. Was a bad year 22. I think the other point that seems to have eluded PS was they had a big spend on inventories precisely because they had to stock up because of shortages. This is an unscheduled update. We dont usually get one before January. The acquisition of Philips Aerospace already integrated and likely to be ahead slightly too. Staff and training also up 10%. Plenty to get exited about in my book. This is a quite stunning turn around especially in this precarious political and economic environment.

[misterd1] 27/11/2023 13:10

Thank you Hastings - a most informative and positive read

[pyemckay] 27/11/2023 13:09

thanks earwacks and Hastings.

[hastings] 27/11/2023 12:50

Pleased to say I've got a call lined up on Wednesday morning, so will add some further comment on my blog. As Earwacks says, very engaging management.Thought it may be worth posting a link that may be of interest to new holders, as I touched base with them in June, August and more recently September. All write ups are there to view.Https://martinflitton1.wixsite.com/privatepunter

[robow] 27/11/2023 10:51

Thanks Earwacks for sharing

[misterd1] 27/11/2023 10:44

I too have decided to join the party having heard that Lord Lee is keen on this stock

[earwacks] 27/11/2023 10:17

Welcome on board. Thats pretty good timing I would say . You have missed all the shenanigans with accounts, placings and supply issues and frankly still a very good price now the company has restructured and rearing to go again. Very amiable board here and in the company. Just had an exchange with CEO and Chairman over the weekend and this morning. They must be the most communicative team I have ever experienced in public listed companies. Nothing seems too much trouble, and hopefully now one of the best performing teams. Has been quite a turnaround in relatively short time during a particularly difficult period of pandemic, supply shortages, accounts, dividend suspension, war etc. given that we are still in pretty diabolical political and economic straits this is probably now looking a lot more reliable than many. Very good luck.

[donald pond] 27/11/2023 09:47

I've also bought in for the first time today.

[pyemckay] 27/11/2023 09:44

new holder here. growth, net cash, undervalued.

[melody9999] 27/11/2023 09:33

The 'track record' para in the TU is interesting. 8 major design wins this year. Estimate £1M+ future revenue from each over coming years. If we average additional revenue at say £10M pa, and total revenue for 2023 is £27M, then wins this year alone will add c +35% to future year revenues.

[valhamos] 27/11/2023 08:48

I've liked the plan here for some time and it is being executed well. The company is being built up to increase its capability and "revenue run rates almost double when compared to historical norms" - and profit increases will catch up with the increase in revenue in the future. Every announcement seems to confirm the story here.

[masurenguy] 27/11/2023 07:56

Looking good - hopefully this will be the catalyst for a subsequent significant shareprice uplift.

Trading Update

Revenue performance has continued the trend established in the first half, with the Board now expecting to deliver revenue for FY23 ahead of market expectations*, prior to the contribution of Phillips Aerospace acquired in September 2023. Revenue for the 6 months to 31 December 2023 is expected to be substantially higher than any prior half-year in the Company's history, driven by the strength of order intake over the preceding 24 months enabled by the significant investment in product development. Management has worked closely with suppliers and customers to successfully manage supply chain issues that previously impacted performance and is pleased to report that these factors have continued to ease as the year has progressed. Order intake has continued the strong profile demonstrated in the preceding year, to provide the Board confidence in the delivery of material revenue growth in the year ended 31 December 2024 and beyond.

[somerset lad] 27/11/2023 07:51

T-Raider, see hxxps://www.cavendish.com/research-portal/#/portal/cavendish.

[hastings] 27/11/2023 07:48

Excellent update, with "Conservative Upgrades". Momentum clearly building as previously outlined by the CEO, exciting times here at CNC.