Concurrent Technologies, 255p (AIM; CNC)
Update extracted from Techinvest, October 2026 issue
Concurrent has reported a strong first half, reporting record revenue, profit and order intake as the group continues to scale its position in high-performance embedded computing and mission critical systems. Revenue for the six months ended June 30 increased 10% to £23.2m, with gross profit rising 10% to £11.8m. EBITDA grew 20% to £4.8m, and pre-tax profit increased 19% to £3.2m. Earnings per share were 2.93p, up 5%. Closing cash strengthened to £9.7m (10.6p per share), compared with £7.8m a year earlier.
The standout feature of the period was exceptional order momentum. Order intake more than doubled to £46.9m, already matching the full fiscal 2025 total. This included the group’s largest ever single contract, worth c.£17.0m, from a long-standing European customer for three variants of an established VME based board. Excluding this award, order intake still exceeded any previous first half period, demonstrating broad based demand across defence, aerospace and industrial markets. Year-to-date order intake has now surpassed £68.0m, providing visibility well into fiscal 2027.
This was a strong performance from Concurrent, with both business units contributing to growth. Products revenue increased 10.6% to £19.8m, while Systems revenue grew 9% to US$4.6m. Systems secured approximately US$8.0m of orders and continues to benefit from the successful integration of Phillips Aerospace. In line with the growing demand from customers, Concurrent is expanding its operational capacity. New machines have been installed in an enlarged Colchester facility, enabling a doubling of manufacturing output, and upgrades to the existing building and newly leased office space will complete in October. Supply chain pressures remain, but the group has secured DRAM supply through 2027 and mitigated processor lifecycle risks through proactive procurement. With a significantly larger backlog, strong pipeline and increasing conversion of long-term programmes, the board confirmed that it now expects fiscal 2026 revenue to be materially ahead of market expectations (£52.0m consensus) and profit ahead as well, supported by phasing of the £17.0m contract win. Trading at a prospective P/E of 34.5 for the current year, the share price looks up with events, particularly as capital expenditure remains high as a percentage of operational cash flow. That situation should change in time as sales linked to recent investment in operations and product come through. But it may be best to wait for stronger evidence of that effect before adding to holdings. Strong hold.
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