Concurrent Technologies – Interim Results

Concurrent Technologies Plc

(the “Company” or the “Group”)

Half year results for the six months to 30 June 2025

Record H1 performance whilst investing for future growth

Concurrent Technologies Plc (AIM: CNC), a designer and manufacturer of leading-edge computer products, systems, and mission-critical solutions used in high-performance markets by some of the world’s major OEMs, is pleased to announce its results for the six months to 30 June 2025 (“H1 2025”).

Financial highlights

	H1 2024	H1 2025	% change
Revenue	£16.8m	£21.1m	+26
Gross profit	£8.5m	£10.7m	+26
Profit before tax (PBT)	£2.3m	£2.7m	+17
Earnings per share	2.68p	2.78p	+4
EBITDA	£3.3m	£4.0m	+21
Order intake	£17.8m	£22.3m	+25
Closing cash	£8.9m	£7.8m	-12

• A successful delivery of a record H1 financial performance, whilst continuing to invest in the Company to position Concurrent for ongoing future growth.
  • Products business unit recorded strong organic growth:
    • Revenue up 10% to £17.9m (H1 FY24: £16.3m).
    • Profit up 12.5% to £3.2m (H1 FY24: £2.8m).
  • Systems business unit beginning to show the growth profile for the future with ongoing investment in operations:
    • Revenue of £3.2m (H1 FY24: £0.5m).
    • Loss consistent at £0.5m (H1 FY24: £0.5m).

• Order intake across the Group rose to £22.3m, an increase of 25% compared to H1 FY24, driven by strong performance in the UK, Europe and Rest of the World (“ROW”).
  • US order intake was initially curtailed due to the delayed defence budget approval, with the US contracting environment expected to increase in run rate in H2 FY25.

• Focus remains on balancing cost and profitability, delivering EBITDA of £4.0m while maintaining investment in Product R&D (£1.8m) and the Systems business unit.

• The Group continues to have a strong cash position at £7.8m (H1 FY24: £8.9m), with the year-on-year movement reflecting:
  •  £2.7m rise in trade debtors, to £8.6m.
  • First time dividend payment of approximately £1m.
  • c.£2.2m increase in inventory levels from H1 FY24 to support future growth.

• Foreign exchange movements have had a negative impact on Group profitability due to the movement of the US Dollar against Sterling, the impact in the period is £0.7m.

• Agreed a new Revolving Credit Facility for £5m with NatWest, ensuring flexibility over the Group’s financing options across the medium term as the Company executes on its growth strategy.

Operational highlights

• Growing momentum across the Products and Systems business units, driven by new design wins across key geographies, including:
  • Significant £3.4m order for the Company’s VME-based 6U computer boards.
  • Record £90m lifetime value major design wins.
  • Post-period end secured the largest UK defence win to date, for £4.0m, to supply VME computers to a prominent prime contractor.

• Launched Kratos, one of the first and most powerful rugged plug-in card’s (PICs) available today, built on Intel’s latest 6516P-B processor which the Company had access to six months early.

• Improvement in factory efficiency following investment in machinery, test equipment and power infrastructure.

• Progress with Colchester facility to improve capacity by end of FY26 and the Systems business unit is on track for relocation into a new facility in the Brea region of Los Angeles in H2 FY25, to meet the growing demand for the Group’s products.

• Strategic hires continued, especially in Systems e.g. Project Director; Headcount now 170 (22 in Systems).

Outlook

• Focus remains on converting the strong sales pipeline, underpinned by the continued delivery of market-leading technology that reinforces Concurrent’s competitive advantage.

• While the Group continues to monitor the pace at which US customers mobilise into placing orders following the recent DoD budget approval, the Board is confident in delivering a financial performance ahead of FY25 market expectations.*

Miles Adcock, CEO of Concurrent Technologies, commented: “We’ve delivered a strategically important first half, with a record financial performance, driven by continued momentum in our core Products business unit, and progress in our Systems business unit that strengthens the foundation for future growth. Innovation remains central to our strategy, evidenced by the early success of our Kratos product, reflecting Concurrent’s ability to deliver market-leading technology.

“The momentum we’ve built in the first half, along with robust order intake and disciplined investment, reinforces our confidence in the full-year outlook. While we are closely monitoring the broader macroeconomic and geopolitical landscape, the Group is well-positioned to continue delivering on its long-term growth ambitions.”

*In so far as the Board is aware, consensus market expectations for FY25 are revenues of £43m and profit before tax of £6m.