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Share Name | Share Symbol | Market | Type | Share ISIN | Share Description |
---|---|---|---|---|---|
Concurrent Technologies Plc | LSE:CNC | London | Ordinary Share | GB0002183191 | ORD 1P |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
1.00 | 1.06% | 95.00 | 94.00 | 96.00 | 96.50 | 94.00 | 94.00 | 238,838 | 13:12:27 |
Industry Sector | Turnover | Profit | EPS - Basic | PE Ratio | Market Cap |
---|---|---|---|---|---|
Printed Circuit Boards | 18.28M | 987k | 0.0115 | 82.61 | 81.36M |
TIDMCNC
RNS Number : 0558V
Concurrent Technologies PLC
12 April 2021
This announcement contains inside information
12 April 2021
Concurrent Technologies Plc
Results for the year ended 31 December 2020
Concurrent Technologies Plc (AIM: CNC), a world leading specialist in the design and manufacture of high-end embedded computer boards for critical applications , announces r esults for the year to 31 December 2020.
Financial Highlights
-- Revenue for the year increased 9% to GBP21.1m (2019: GBP19.4m) -- Gross profit increased 12% to GBP11.4m (2019: GBP10.2m) -- Gross margin increased to 53.7% (2019: 52.7%) -- EBITDA steady at GBP5.0m (2019: GBP5.1m)
-- Adjusted Profit before tax of GBP2.8m (2019: 3.1m after adjusting for other, non-recurring income of GBP1.0m)
-- Profit before Tax of GBP2.8m (2019: GBP4.1m - including other, non-recurring income of GBP1.0m)
-- Profit after Tax of GBP2.7m (2019: GBP4.0m)
-- Adjusted EPS for 2020 was 3.75 (2019: 4.38 after removing the non-recurring income of GBP1m and the associated tax impact)
-- Dividend increased to 2.55 pence per share for the year (2019: 2.50 pence) -- Cash in the business increased to GBP11.8m (2019: GBP10.5m)
Operational Highlights
-- Production and the design and development functions have remained open and, for the most part, fully operational throughout the COVID-19 pandemic. The Group has not participated in any government aid scheme such as the Coronavirus Business Interruption Loan Scheme (CBILS) or VAT payment deferral and no employees have been furloughed during the pandemic.
-- Exports remain strong and contribute 91% of Group revenue
-- Cessation of R&D facility in India almost completed and functions transferred to UK. Costs of cessation were GBP0.7m which have been recognised in the 2020 accounts.
-- Spending on R&D increased to GBP3.89m in 2020 (2019: GBP3.51m), of which GBP1.88m was capitalised (2019: GBP2.26m).
The Group's previous Chairman, Michael Collins, retired from the Board in September 2020 after 31 years' service to the Group. Mike's knowledge and experience helped to guide the Group from start-up to PLC. Mark Cubitt was appointed as the Group's new Chairman at the AGM, having previously joined the Board as a Non-Executive Director in March 2020. Mark is a Chartered Accountant and is a member of the Association of Corporate Treasurers. He has extensive multinational experience gained over the last 33 years, including 23 years in the listed PLC environment.
Mark Cubitt, Chairman of Concurrent Technologies Plc, commented:
" During 2020, the Group introduced several new high-performance embedded computer boards and accessory modules. These included products based on the 9th generation embedded Intel(R) Xeon(R) processor for use in AMC, CompactPCI(R) and OpenVPX(TM) architectures.
As part of the Group's long-term continuous improvement strategy, and to mitigate an identified risk to the business during 2020, a further investment of GBP155,000 was made within manufacturing to introduce a new circuit board processing line.
The Board is taking a cautious approach to revenue growth in the coming year because of the continuing uncertainty caused by the COVID-19 outbreak and the delays seen to some programmes potentially moving revenue from 2021 to 2022. However, the Group's proven ability to adapt to the challenges brought about by the pandemic, the overhead savings from closure of the Indian design office, its ability to provide a well-supported, UK designed and manufactured product, and the current record order book, which has seen a substantial increase during the first quarter of 2021, gives the Board confidence in the Group's continuing solid performance."
Annual General Meeting
Due to the COVID-19 crisis and social distancing requirements the date and arrangements for the AGM will be announced separately.
Enquiries:
Concurrent Technologies Plc Jane Annear, Managing Director/CEO +44 (0)1206 752626 Newgate (Financial PR) Bob Huxford +44 (0)20 7653 9848 Isabelle Smurfit +44 (0)20 7653 3411 Cenkos Securities Plc (NOMAD) Neil McDonald +44 (0)131 220 9771 Peter Lynch +44 (0)131 220 9772
Extracts from the Strategic Report
Review of Operations
The Group generated record Revenue for the year of GBP21.14m (2019: GBP19.38m). This converted into Gross Profit of GBP11.36m (2020: GBP10.21m) while the gross margin improved to 53.7% (2019: 52.7%).
Profit before tax was GBP2.85m (2019: GBP4.06m: 2019 included other, non-recurring income of GBP1.0m). Earnings per share was 3.75 pence (2019: 5.51 pence) while earnings per share on normal activities, adjusted to remove the impact of Other Income, was 3.75 pence (2019: 4.38 pence). EBITDA (measured as Operating Profit plus Depreciation and Amortisation) for the Group in 2020 was GBP4.99m (2019: GBP5.07m).
The Group continued its long-term commitment to R&D by spending GBP3.89m in 2020 (2019: GBP3.51m), of which GBP1.88m was capitalised (2019: GBP2.26m) and GBP0.69m related to closure costs of the Indian R&D centre. In light of the slowdown in the sales of some projects, an unusually large impairment charge of GBP888,579 (2019: GBP483,630) was included during the year to reflect relatively pessimistic cash generating expectations of itemised projects.
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 GBP11.8m (2019: GBP10.5m).
Operational Highlights
During 2020, the Group introduced several new high-performance embedded computer boards and accessory modules. These included products based on the 9th generation embedded Intel(R) Xeon(R) processor for use in AMC, CompactPCI(R) and OpenVPX(TM) architectures. These products were introduced as part of the Group's policy to provide existing customers with products that can be used as upgrade paths from previous generations where additional processing power or enhanced features are required. New customers benefit from choosing products based on the latest technologies. 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 partner software and hardware products was announced to broaden the Group's product range. The Group's AI technology product is currently being developed for use on a prototype third-party end product that may come to market this year.
As part of the Group's long-term continuous improvement strategy, and to mitigate an identified risk to the business during 2020, a further investment of GBP155,000 was made within manufacturing to introduce a new circuit board processing line. This line will significantly help to reduce lead times for particular product variants.
Outlook
The new financial year of 2021 started with a healthy order book which has seen a significant increase during the first quarter of the year. The Group's telecoms business is now recovering and growing after last year's second half slow down, and several customers in the defence and telecoms sectors have placed orders for previous generation products that have been offered under extended manufacturing to protect and extend the lifecycle of their projects. These orders are due for delivery in 2021 and beyond. Several of the Group's customers have made the decision to upgrade to its newer generation products.
The Group plans to maintain its policy of investing in R&D to expand its current range of advanced technology products with a particular focus on the OpenVPX(TM) bus architecture, featuring the latest Intel processors suitable for the long lifecycle embedded markets in which the Group operates. Support for third party software and hardware products will be continued in order to enhance the Group's capability to provide development systems. 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 Board sees opportunities to grow the business organically by broadening the range of both hardware and software products within its existing core markets of defence and telecommunications. Savings made from ceasing operations in the Indian office will largely be reinvested to increase and broaden the skills and technical expertise within the UK team. In addition, the Board continues to look to recruit key individuals and skill for both succession and organic growth as well as for worldwide acquisition opportunities which would assist the Group in introducing new skills and technologies complementary and adjacent to its current product ranges. This is with the aim of increasing the Group's potential share of the total available market.
Dividend
The Board has declared a second interim dividend of 1.45 pence per share (2019: 1.45 pence) which, when added to the first interim dividend of 1.10 pence per share (2019: 1.05 pence), will make a total of 2.55 pence per share for the year (2019: 2.50 pence). This is an increase of 2.0% on dividends paid for 2019. The total cost of this second interim dividend amounts to GBP1,063,771. As in previous years, the Directors do not intend to recommend a final dividend.
Annual General Meeting
Due to the COVID-19 crisis and social distancing requirements the date and arrangements for the AGM will be announced separately.
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 2020 2019 CONTINUING OPERATIONS GBP GBP Revenue 21,141,294 19,384,724 Cost of sales 9,780,750 9,174,588 ------------ ------------ Gross profit 11,360,544 10,210,136 Operating expenses 8,444,962 7,204,073 ============ ============ Group operating profit 2,915,582 3,006,063 Finance costs (83,985) (41,808) Finance income 16,480 96,601 Other Income - 1,000,000 ------------ ------------ Profit before tax 2,848,077 4,060,856 Tax 98,167 52,857 ------------ ------------ Profit for the year 2,749,910 4,007,999 ============ ============ Other Comprehensive Income Items that will be reclassified subsequently to profit or loss: Exchange differences on translating foreign operations (283,681) (186,972) Tax relating to components of other - - comprehensive income Other Comprehensive Income for the year, net of tax (283,681) (186,972) Total Comprehensive Income for the year 2,466,229 3,821,026 ============ ============ Profit for the period attributable to: ------------ ------------ Equity holders of the parent 2,749,910 4,007,999 ------------ ------------ Total Comprehensive Income attributable to: Equity holders of the parent 2,466,229 3,821,026 ------------ ------------ Earnings per share Basic earnings per share 3.75p 5.51p Diluted earnings per share 3.74p 5.47p
Consolidated Balance Sheet
As at As at 31 December 31 December 2020 2019 (as restated) GBP GBP ASSETS Non-current assets Property, plant and equipment 1,734,965 1,638,429 Intangible assets 7,205,581 7,991,119 Deferred tax assets 134,775 142,894 9,075,321 9,772,442 Current assets Inventories 5,533,574 5,097,907 Trade and other receivables 2,356,157 2,703,960 Current tax assets 305,113 274,221 Other financial assets - - Cash and cash equivalents 11,765,974 10,487,902 ----------- ------------- 19,960,818 18,563,990 Total assets 29,036,139 28,336,432 ----------- ------------- LIABILITIES Non-current liabilities Deferred tax liabilities 1,571,830 1,453,331 Trade and other payables 704,800 838,001 Long term provisions 16,162 16,731 ----------- ------------- 2,292,792 2,308,063 Current liabilities Trade and other payables 4,143,522 4,126,823 Short term provisions 16,354 16,832 Current Tax Liabilities 26,504 - 4,186,380 4,142,655 Total liabilities 6,479,172 6,451,718 ----------- ------------- Net assets 22,556,967 21,884,714 =========== ============= 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 (121,293) 162,388 Profit and loss account 17,983,179 17,027,245 ----------- ------------- Equity attributable to equity holders of the parent 22,556,967 21,884,714 Total equity 22,556,967 21,884,714 =========== =============
Consolidated Cash Flow Statement
Year to Year to 31 December 31 December 2020 2019 GBP GBP Cash flows from operating activities Profit before tax for the period 2,848,077 4,060,856 Adjustments for: Finance income (16,480) (96,601) Finance costs 83,985 41,808 Depreciation 282,563 315,687 Amortisation 1,793,628 1,788,003 Impairment loss 888,579 483,630 Share-based payment 6,991 82,421 Exchange differences (300,569) (205,790) Decrease/(increase) in inventories (435,667) (1,001,331) (Increase)/decrease in trade and other receivables 347,803 648,621 Increase/(decrease) in trade and other payables (9,354) 1,232,237 ----------- ----------- Cash generated from operations 5,489,557 7,349,541 Tax received 40,536 (21,173) ----------- ----------- Net cash generated from operating activities 5,530,092 7,328,368 ----------- ----------- Cash flows from investing activities Interest received 16,480 96,601 Purchases of property, plant and equipment (PPE) (385,964) (476,376) Capitalisation of development costs and purchases of intangible assets (1,896,659) (2,272,054) ----------- ----------- Net cash used in investing activities (2,266,143) (2,651,829) Cash flows from financing activities Equity dividends paid (1,864,968) (1,745,345) Repayment of leasing liabilities (108,195) (108,426) Interest paid (83,985) (41,808) Sale of treasury shares 47,529 4,950 ----------- ----------- Net cash used in financing activities (2,009,619) (1,890,629) Effects of exchange rate changes on cash and cash equivalents 23,742 22,640 Net increase/(decrease) in cash 1,278,072 2,808,550 Cash at beginning of period 10,487,902 7,679,352 ----------- ----------- Cash at the end of the period 11,765,974 10,487,902 =========== ===========
Consolidated Statement of Changes in Equity
Capital Cumulative Profit Share Share redemption translation and loss Total capital premium reserve reserve account Equity GBP GBP GBP GBP GBP GBP Balance at 1 January 2019 739,000 3,699,105 256,976 349,360 14,670,553 19,714,994 Profit for the period - - - - 4,007,999 4,007,999 Exchange differences on translating foreign operations - - - (186,972) - (186,972) ---------------- ---------------- ---------------- ---------------- ------------------ ----------- Total comprehensive income for the period - - - (186,972) 4,007,999 3,821,027 Transactions with owners: Share-based payment - - - - 82,421 82,421 Deferred tax on share based payment - - - - 6,667 6,667 Dividends paid - - - - (1,745,345) (1,745,345) Purchase of treasury shares - - - - 4,950 4,950 ---------------- ---------------- ---------------- ---------------- ------------------ ----------- Balance at 31 December 2019 739,000 3,699,105 256,976 162,388 17,027,245 21,884,714 ---------------- ---------------- ---------------- ---------------- ------------------ ----------- Profit for the period - - - - 2,749,910 2,749,910 Exchange differences on translating foreign operations - - - (283,681) - (283,681) ---------------- ---------------- ---------------- ---------------- ------------------ ----------- Total comprehensive income for the period - - - (283,681) 2,749,910 2,466,229 Transactions with owners: Share-based payment - - - - 6,991 6,991 Deferred tax on share based payment - - - - 16,472 16,472 Dividends paid - - - - (1,864,968) (1,864,968) Sale of treasury shares - - - - 47,529 47,529 ---------------- ---------------- ---------------- ---------------- ------------------ ----------- Balance at 31 December 2020 739,000 3,699,105 256,976 (121,293) 17,983,179 22,556,967 ================ ================ ================ ================ ================== ===========
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 accounting standards in conformity with the requirements of the Companies Act 2006. The accounting policies adopted in this results announcement have been consistently applied to all the years presented. The restatement of balance sheet items refers to lease liabilities which have been reclassified from current to non-current liabilities. The adjustment does not impact shareholder funds or profit previously stated.
2. The financial information set out above does not constitute the Group's statutory accounts for the years ended 31 December 2020 or 2019, but is derived from those accounts. Statutory accounts for 2019 have been delivered to the Registrar of Companies and those for 2020 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 2019 or 2020 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 2020 of 73,253,120 (2019: 72,724,271) after adjustment for treasury shares on the profit after tax for 2020 of GBP 2,749,910 (2019: GBP4,007,999). The calculation of diluted earnings per share incorporates 311,651 Ordinary Shares (2019: 574,542) in respect of performance related employee share options. The profit after tax is the same as for basic earnings per share.
4. Due to the COVID-19 crisis and social distancing requirements the date and arrangements for the AGM will be announced separately.
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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(END) Dow Jones Newswires
April 12, 2021 02:00 ET (06:00 GMT)
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