Final Results

RNS Number : 4918I
Concurrent Technologies PLC
26 March 2015
 



26 March 2015

Concurrent Technologies Plc

Results for the year ended 31 December 2014

 

Concurrent Technologies Plc (the "Company"), a world leading specialist in the design and manufacture of high-end embedded computer products, for critical applications in the defence, aerospace, transportation, telecommunications, scientific and industrial markets, announces results for the year to 31 December 2014.

 

Financial Highlights

 

·     Turnover increased to £12.8m (2013: £11.9m)

·     EBITDA increased to £3.0m (2013: £1.9m)

·     Profit before Tax increased to £1.7m (2013: £0.5m)

·     Cash in business plus deposits increased to £5.6m (2013: £4.9m)

·     EPS increased to 2.28 pence (2013: 1.02 pence)

·     Dividend increased by 2.86% to 1.80 pence per share for the year (2013: 1.75 pence)

 

Operational Highlights

 

·     Success with sales associated with telecommunications base station test equipment using AMC architecture.

·     Further growth in sales of products associated with scientific applications.

·     Continued improvement in VPX™ architecture product sales mainly for defence applications.

·     4 new high performance processor boards, featuring the latest technology including 4th generation Intel®Core™ processors and new low power Intel® Atom™ processors.

·     Relaxation of export regulations for most products containing encryption.

·     Significant investment in new equipment for R&D and Manufacturing.

 

Michael Collins, Chairman, commented:

 

"Our products are used in a wide range of ever more sophisticated, high-reliability computer systems. Continual investment in R&D is critical to ensure a constant expansion of our range of advanced technology products and thereby enhance our competitive position. Our objective remains to design more innovative products for complex, high technology, low to medium volume and high margin applications, including versions for use in harsh environments. We will continue to develop the capabilities of these products with new and complementary software and firmware packages to provide high-speed data transfer, ease of integration and security. We will also continue to strengthen our engineering capabilities."

"The Group started 2015 with a strong order book and the improvement in the situation regarding export licence restrictions is also expected to benefit the Group's prospects throughout the year. We will continue to look for new opportunities and our diverse product range, coupled with investment in applying new technology, will enable us to take advantage of these opportunities in a variety of markets."

 

Annual General Meeting

 

The annual general meeting of Concurrent Technologies Plc will be held at the Company's offices at 4 Gilberd Court, Newcomen Way, Colchester, Essex, CO4 9WN, on 26 May 2015 at 2:30pm.

 

Enquiries:

 

Concurrent Technologies Plc
Glen Fawcett, CEO

 

+44 (0)1206 752 626



Newgate (Financial PR)
Tim Thompson

Robyn McConnachie


+44 (0)207 653 9850



Cenkos Securities plc (NOMAD)
Neil McDonald


+44 (0)131 220 9771

Extracts from the Strategic Report

Review of Operations

Group revenue for 2014 was in line with expectations at £12.81m (2013: £11.86m). The overall growth of 8% was achieved despite performance continuing to be affected by the problem of having to apply for export licences for advanced technology products to emerging markets where we were anticipating sales growth. The exporting of products containing encryption, which encompassed many of the Company's products, was to a large extent, de-controlled in July 2014.This considerably simplified the exporting of the Company's products to its key markets outside of the EU and USA, and helped to improve our overall exports from 54% reported at the half year, to 60% over the full year (2013: 73%). Despite these difficulties, overall growth in exports to countries other than Europe and USA was 25%.

Another major success this year has been with sales associated with telecommunications test equipment, which has helped sales of our AMC architecture boards grow by 247%, and overall sales for telecommunications applications, by 71%.

Sales associated with scientific applications, especially for particle physics research projects, have also continued to grow, with a 42% increase during the year.

Investment in R&D increased from £2.35m in 2013 to £2.76m in 2014, of which £2.09m was capitalised (2013: £1.70m). The results for this year include a write down of our R&D design assets by £0.45m (2013: £0.84m), due in part to the continuing effects on possible future orders caused by the prior UK export licensing issues.  

The Group EBITDA (measured as Operating Profit plus Depreciation and Amortisation) for 2014 was £3.00m (2013: £1.92m). The Group achieved a profit before tax for 2014 of £1.72m (2013: £0.45m). Earnings per share for the year were 2.28 pence (2013: 1.02 pence). The gross margin for the year was 51.2% compared with 50.6% for 2013.

Notwithstanding that the Company has again increased the dividend for 2014 and R&D spending, our cash balances at the year-end have improved to £5.62m (2013: £4.94m) and we have no borrowings.

Operational Highlights

Four new high performance embedded computers were released during the year, featuring the latest technology including 4th generation Intel® Core™ processors and new low power Intel®Atom™ processors. We have continued our investment in AMC architecture products, which has been rewarded in sales this year, and have also released further low power products in VME and CompactPCI® architectures. There has also been continuing growth in sales for our VPX™ architecture boards, which are mainly used in defence and surveillance related applications, including unmanned vehicles.

Additionally, together with our primary computer boards, we have released further accessory boards and storage modules to complement and give additional functionality to our main products. Another new important project is the development of a GPU accelerator board to augment the processing capability of our Intel® processor based AMC boards. GPU accelerated computing is a method of achieving very fast processing of "big data" applications and is particularly well suited to compute-intensive applications in areas such as scientific, engineering, financial, research, geographic and intelligence.

To assist with the design of environmentally superior products that can operate at extreme temperatures, elevated altitudes and at high shock and vibration levels, we have invested in our own shock and vibration test machine. On the manufacturing side, we have also invested in a powerful X-ray machine which can perform 3D scanning and sectional imaging to enable faster detection of faults inside components and PCBs. In addition, in order to alleviate capacity issues and speed up production throughput, in January 2015, we acquired an additional pick-and-place module for the very fast placement of components on boards.

Future Plans

Our products are used in a wide range of ever more sophisticated, high-reliability computer systems. Continual investment in R&D is critical to ensure a constant expansion of our range of advanced technology products and thereby enhance our competitive position. Our objective remains to design more innovative products for complex, high technology, low to medium volume and high margin applications, including versions for use in harsh environments. We will continue to develop the capabilities of these products with new and complementary software and firmware packages to provide high-speed data transfer, ease of integration and security. We will also continue to strengthen our engineering capabilities.

The Group started 2015 with a strong order book and the improvement in the situation regarding export licence restrictions is also expected to benefit the Group's prospects throughout the year. We will continue to look for new opportunities and our diverse product range, coupled with investment in applying new technology, will enable us to take advantage of these opportunities in a variety of markets.

 

 

Dividend

The Board has declared a second interim dividend of 1.15 pence per share (2013: 1.10 pence second interim dividend) which when added to the first interim dividend of 0.65 pence per share will make a total of 1.80 pence per share for the year (2013: 1.75 pence). This is an increase of 2.86% on dividends paid for 2013. The total cost of this second interim dividend will amount to £834,906. As in previous years, the Directors do not intend to recommend a final dividend.

Annual General Meeting

The annual general meeting of Concurrent Technologies Plc will be held at the Company's offices at 4 Gilberd Court, Newcomen Way, Colchester, Essex, CO4 9WN, on 26 May 2015 at 2:30pm.

 

All companies and product names are trademarks of their respective organisations.



 

Consolidated Statement of Comprehensive Income


Year to


Year to


31 December


31 December


2014


2013

CONTINUING OPERATIONS


£


£

Revenue


12,806,315


11,859,180

Cost of sales


6,247,748


5,857,094

Gross profit


6,558,567


6,002,086

Operating expenses


4,892,800


5,614,290

Group operating profit


1,665,767


387,796

Finance income


58,079


66,133

Profit before tax


1,723,846


453,929

Tax


76,148


(275,688)

Profit for the year


1,647,698


729,617






Other Comprehensive Income





Items that will be reclassified subsequently to profit or loss:





Exchange differences on translating foreign operations


90,539


(124,637)

Tax relating to components of other comprehensive income


-


-

Other Comprehensive Income for the year, net of tax


90,539


(124,637)

Total Comprehensive Income for the year


1,738,237


604,980






Profit for the period attributable to:





Equity holders of the parent


1,647,698


729,617






Total Comprehensive Income attributable to:





Equity holders of the parent


1,738,237


604,980






Earnings per share





Basic earnings per share


2.28p


1.02p






Diluted earnings per share


2.28p


1.01p



 

Consolidated Balance Sheet


As at


As at



31 December


31 December



2014


2013



£


£

ASSETS





Non-current assets





Property, plant and equipment


608,044


478,131

Intangible assets


6,018,931


5,467,503

Deferred tax assets


73,440


108,396



6,700,415


6,054,030

Current assets





Inventories


2,699,658


2,550,556

Trade and other receivables


2,790,426


2,874,354

Current tax assets


307,912


247,240

Other financial assets


    -


2,602,689

Cash and cash equivalents


5,624,505


2,340,859



11,422,501


10,615,698






Total assets


18,122,916


16,669,728






LIABILITIES





Non-current liabilities





Deferred tax liabilities


1,279,852


1,164,267

Long term provisions


7,314


10,009 



1,287,166


1,174,276

Current liabilities





Trade and other payables


2,500,524


1,931,110

Short term provisions


33,922


36,813

Current tax liabilities


665


    -



2,535,111


1,967,923






Total liabilities


3,822,277


3,142,199






Net assets


14,300,639


13,527,529






EQUITY





Capital and reserves





Share capital


       739,000


       727,000

Share premium account


    3,693,818


    3,405,817

Capital redemption reserve


       256,976


       256,976

Cumulative translation reserve


15,723


(74,816)

Profit and loss account


9,595,122


9,212,552

Equity attributable to equity holders of the parent


14,300,639


13,527,529






Total equity


14,300,639


13,527,529



 

Consolidated Cash Flow Statement



Year to


Year to



31 December


31 December



2014


2013



£


£

Cash flows from operating activities





Profit before tax for the period


1,723,846


453,929

Adjustments for:





Finance income       


(58,079)


(66,133)

Depreciation       


178,059


169,259

Amortisation       


1,160,940


1,363,530

Impairment loss       


450,000


842,783

Share-based payment       


6,279


(94,726)

Exchange differences       


29,060


(74,551)

(Increase)/decrease in inventories       


(149,102)


417,134

(Increase)/decrease in trade and other receivables       


83,928


400,311

Increase/(decrease) in trade and other payables       


563,828


426,431

Cash generated from operations


3,988,759


3,837,967

Tax (paid)/received


284


(61,654)

Net cash generated from operating activities


3,989,043


3,776,313






Cash flows from investing activities





Interest received


58,079


66,133

Cash released from/(placed) on Deposit


2,602,689


(602,689)

Purchases of property, plant and equipment (PPE)


(303,816)


(225,505)

Capitalisation of development costs and purchases of intangible assets


(2,161,809)


(1,726,312)

Net cash used in investing activities


195,143


(2,488,373)






Cash flows from financing activities





Equity dividends paid


(1,257,305)


(1,214,420)

Issue of Ordinary shares


300,001


    -

Purchase of treasury shares


    -


(16,625)

Net cash used in financing activities


(957,304)


(1,231,045)






Effects of exchange rate changes on cash and cash equivalents


56,764


(32,964)






Net increase/(decrease) in cash


3,283,646


23,931

Cash at beginning of period


2,340,859


2,316,928

Cash at the end of the period


5,624,505


2,340,859








 

Consolidated Statement of Changes in Equity







Capital


Cumulative


Profit





Share


Share


redemption


translation


and loss


Total



capital


premium


reserve


reserve


account


Equity



£


£


£


£


£


£

Balance at 1 January 2013


     727,000


 3,405,817


     256,976


49,821


9,862,012


14,301,626














Profit for the period


                -  


                -  


                -  


                -  


729,617


729,617

Exchange differences on translating foreign operations


                -  


                -  


                -  


(124,637)


                  -  


(124,637)

Total comprehensive income for the period


                -   


                -  


                -  


(124,637)


729,617


604,980

Transactions with owners:













Share-based payment


                -  


                -  


                -  


                -  


(94,726)


(94,726)

Deferred tax on share based payment


                -  


                -  


                -  


                -  


(53,306)


(53,306)

Dividends paid


                -  


                -  


                -  


                -  


(1,214,420)


(1,214,420)

Purchase of treasury shares


                -  


                -  


                -  


                -  


(16,625)


(16,625)

Balance at 31 December 2013


     727,000


 3,405,817


     256,976


(74,816)


9,212,552


13,527,529














Profit for the period


                -  


                -  


                -  


                -  


1,647,698


1,647,698

Exchange differences on translating foreign operations


                -  


                -  


                -  


90,539


                  -  


90,539

Total comprehensive income for the period


                -  


                -  


                -  


90,539


1,647,698


1,738,237

Transactions with owners:













Share-based payment


                -  


                -  


                -  


                -  


6,279


6,279

Deferred tax on share based payment


                -  


                -  


                -  


                -  


(14,102)


(14,102)

Dividends paid


                -  


                -  


                -  


                -  


(1257,305)


(1257,305)

Issue of Ordinary shares


12,000


288,001


                -  


                -  


                -


300,001

Balance at 31 December 2014


     739,000


3,693,818


     256,976


15,723


9,595,122


14,300,639
















 

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 Financial Reporting Standards ('IFRSs') as adopted by European Union. The accounting policies adopted in this results announcement have been consistently applied to all the years presented and are consistent with the policies used in the preparation of the statutory accounts for the period ended 31 December 2013. The consolidated financial information is presented in sterling (£), which is the company's functional and the Group's presentation currency.

 

2.  The financial information set out above does not constitute the Group's statutory accounts for the years ended 31 December 2014 or 2013, but is derived from those accounts. Statutory accounts for 2013 have been delivered to the Registrar of Companies and those for 2014 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 2013 or 2014 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 2014 of 72,278,298 (2013: 71,430,298) allowing for an adjustment made as a consequence of the Company having issued 1,200,000  Ordinary Shares on 08 April 2014 (2013: nil) and on the profit after tax for 2014 of £1,647,698 (2013: £729,617). The calculation of diluted earnings per share incorporates 11,992 Ordinary Shares (2013: 593,207) in respect of performance related employee share options. The profit after tax is the same as for basic earnings per share.

 

4.  The annual general meeting of Concurrent Technologies Plc will be held at the Company's offices at 4 Gilberd Court, Newcomen Way, Colchester, Essex, CO4 9WN, on 26 May 2015 at 2:30pm.

 

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.cct.co.uk.


This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
FR EAPDSADASEFF
UK 100

Latest directors dealings