REG - Concurrent Tech. - Final Results <Origin Href="QuoteRef">CNCT.L</Origin>

Concurrent TechnologiesAnnouncement

24/03/2017 07:06

RNS Number : 3922A
Concurrent Technologies PLC
24 March 2017
24 March 2017
Concurrent Technologies Plc
Results for the year ended 31 December 2016
Concurrent Technologies Plc (AIM: CNC), a world leading specialist in the design and manufacture of high-end embedded computer boards for critical applications, announces results for the year to 31 December 2016.
Financial Highlights

 Turnover of 16.4m (2015: 17.1m)
 Gross profit increased by 3.0% to 8.9m (2015: 8.6m)
 Gross margin increased to 54.2% (2015: 50.6%)
 EBITDA increased by 3.2% to 4.3m (2015: 4.2m)
 Profit before Tax increased by 6.2% to 2.9m (2015: 2.7m)
 EPS increased by 2.9% to 3.90 pence (2015: 3.79 pence)
 Dividend increased by 10.5% to 2.10 pence per share for the year (2015: 1.90 pence)
 Cash in business plus deposits increased by 32.3% to 7.8m (2015: 5.9m)
Operational Highlights
 Four new high performance embedded computers were released during 2016, two of which featured new generation IntelXeonprocessors 
 All architectures for new applications and new customers include low power units and allow for practical upgrade paths for existing long life cycle customers 
 Released further sophisticated high bandwidth switching boards supplementing functionality of main products
Michael Collins, Chairman of Concurrent Technologies Plc, commented:
"We are currently witnessing numerous opportunities to introduce our highly innovative technology to new and existing customers. To best meet these opportunities our strategy is to continue to invest in R&D to ensure a constant expansion of our advanced product range.
We continue to look for acquisition options but there is plenty of scope for internal organic growth where we continue to see many opportunities to grow the business into new market areas without taking unacceptable risks. 
Sales and new interest in our products and services arising this year have been encouraging and our current healthy order book gives us confidence in our performance for 2017."
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 25 May 2017 at 2:30pm.


Enquiries:
Concurrent Technologies Plc
Glen Fawcett, CEO
+44 (0)1206 752 626


Newgate (Financial PR)
Bob Huxford
James Browne

+44 (0)207 653 9850


Cenkos Securities plc (NOMAD)
Neil McDonald
Nick Tulloch
Beth McKiernan

+44 (0)131 220 9771
+44 (0)131 220 9772
+44 (0)131 220 9778


Extracts from the Strategic Report
Review of Operations 
The Group achieved excellent results in 2016, with sales of 16.42m (2015: 17.07m). The Revenue for 2015 included significant ordersfrom one customer which as anticipated by the Board, were not repeated at such a high level in 2016.
Despite the fall in revenues, gross profit increased to 8.89m (2015: 8.64m). The gross margin for the year increased to 54.2% (2015: 50.6%). 
Profit before tax was 2.90m (2015: 2.73m). Earnings per share were 3.90 pence (2015: 3.79 pence).
EBITDA (measured as Operating Profit plus Depreciation and Amortisation) for the Group in 2016 was 4.31m (2015: 4.17m). 
The Total Comprehensive Income for the year was 3.25m which included 0.42m of income resulting from exchange differences on translating foreign operations. This substantially arose from a significant devaluation of sterling against other currencies in June 2016.
We continued to increase our investment in R&D from 3.05m in 2015 to 3.39m in 2016, of which 2.27m was capitalised (2015: 2.20m).
The Group continues to have no borrowings. We have again paid increased dividends during the year and our cash balances plus short to medium term cash deposits at the year-end improved to 7.78m (2015: 5.87m).
Operational Highlights
Four new high performance embedded computers were released during 2016. Two of these, featured the latest technology processors including the new generation IntelXeonprocessors. As well as providing the latest high performance and low power units across all of our architectures for new applications and new customers, these computer boards also allow for practical upgrade paths for our existing long life cycle customers. In addition to these two main computer boards, we also released further sophisticated high bandwidth switching boards to supplement the functionality of our main products providing, for example, faster and easier network connectivity.
Future Plans
Our core business is resilient and there are many opportunities to introduce our highly innovative technology to new and existing customers. 
We will continue our investment in R&D to ensure a constant expansion of our range of advanced technology products and thereby enhance our competitive position. Additional R&D engineers will be recruited in the UK, USA and India to design more products for complex, high technology, low to medium volume and high margin applications, along with producing versions targeted for use in harsh environments, including military applications.
The key to continued success is to expand our range of products, with a particular focus on the VPX bus architecture. In addition to boards and associated software we have recently started to provide development systems based on the VPX and MicroTCAarchitectures. These development systems will enable users to reduce their own product development times.
We continue to look for acquisition opportunities but there is plenty of scope for internal organic growth where we continue to see many opportunities to grow the business into new market areas without taking unacceptable risks. 
Sales and new opportunities arising this year have been encouraging and our current healthy order book gives us confidence in our performance for the full year.
Dividend
The Board has declared a second interim dividend of 1.30 pence per share (2015: 1.20 pence) which when added to the first interim dividend of 0.80 pence per share (2015: 0.70 pence) will make a total of 2.10 pence per share for the year (2015: 1.90 pence). This is an increase of 10.5% on dividends paid for 2015. The total cost of this second interim dividend will amount to 945,340. 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 25 May 2017 at 2:30pm.
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


2016

2015
CONTINUING OPERATIONS


Revenue

16,423,978

17,073,829
Cost of sales

7,529,867

8,437,564
Gross profit

8,894,111

8,636,265
Operating expenses

6,040,302

5,945,140
Group operating profit

2,853,809

2,691,125
Finance income

48,705

42,292
Profit before tax

2,902,514

2,733,417
Tax

72,609

(21,351)
Profit for the year

2,829,905

2,754,768





Other Comprehensive Income




Items that will be reclassified subsequently to profit or loss:




Exchange differences on translating foreign operations

415,966

62,918
Tax relating to components of other comprehensive income

-

-
Other Comprehensive Income for the year, net of tax

415,966

62,918
Total Comprehensive Income for the year

3,245,871

2,817,686





Profit for the period attributable to:




Equity holders of the parent

2,829,905

2,754,768





Total Comprehensive Income attributable to:




Equity holders of the parent

3,245,871

2,817,686





Earnings per share




Basic earnings per share

3.90p

3.79p





Diluted earnings per share

3.90p

3.79p


Consolidated Balance Sheet


As at

As at


31 December

31 December


2016

2015


 

 
ASSETS




Non-current assets




Property, plant and equipment

414,209

690,357
Intangible assets

6,846,520

6,307,044
Deferred tax assets

112,128

129,647


7,372,857

7,127,048
Current assets




Inventories

3,239,855

3,774,285
Trade and other receivables

3,327,629

2,520,573
Current tax assets

93,156

284,419
Other financial assets

1,000,000

1,000,000
Cash and cash equivalents

6,773,083

4,873,815


14,433,723

12,453,092





Total assets

21,806,580

19,580,140





LIABILITIES




Non-current liabilities




Deferred tax liabilities

1,291,468

1,305,237
Long term provisions

6,699

9,968


1,298,167

1,315,205
Current liabilities




Trade and other payables

2,810,655

2,411,524
Short term provisions

23,939

31,897
Current tax liabilities

- 

- 


2,834,594

2,443,421





Total liabilities

4,132,761

3,758,626





Net assets

17,673,819

15,821,514





EQUITY




Capital and reserves




Share capital

739,000

739,000
Share premium account

3,693,818 

3,693,818 
Capital redemption reserve

256,976 

256,976 
Cumulative translation reserve

494,607

78,641
Profit and loss account

12,489,418

11,053,079
Equity attributable to equity holders of the parent

17,673,819

15,821,514





Total equity

17,673,819

15,821,514


Consolidated Cash Flow Statement


Year to

Year to


31 December

31 December


2016

2015


 

 
Cash flows from operating activities




Profit before tax for the period

2,902,514

2,733,417
Adjustments for:




Finance income 

(48,705)

(42,292)
Depreciation 

196,370

224,778
Amortisation 

1,254,826

1,254,083
Impairment loss 

499,509

690,201
Loss/(profit) on disposal of property, plant and equipment (PPE)

233,840

(1,334)
Share-based payment 

13,585

26,192
Exchange differences 

76,461

86,711
Decrease/(increase) in inventories 

534,430

(1,074,627)
(Increase)/decrease in trade and other receivables 

(927,530)

269,853
Increase/(decrease) in trade and other payables 

558,815

(88,371)
Cash generated from operations

5,294,115

4,078,611
Tax received

116,142

48,956
Net cash generated from operating activities

5,410,257

4,127,567





Cash flows from investing activities




Interest received

48,705

42,292
Cash released from/(placed) on deposit

- 

(1,000,000)
Purchases of property, plant and equipment (PPE)

(138,181)

(305,874)
Proceeds from sale of PPE

- 

1,500
Capitalisation of development costs and purchases of intangible assets

(2,290,889)

(2,231,637)
Net cash used in investing activities

(2,380,365)

(3,493,719)





Cash flows from financing activities




Equity dividends paid

(1,452,689)

(1,343,141)
Exercise of share options

51,800 

- 
Purchase of treasury shares

-

(15,461)
Net cash used in financing activities

(1,400,889)

(1,358,602)





Effects of exchange rate changes on cash and cash equivalents

270,265

(25,936)





Net increase/(decrease) in cash

1,899,268

(750,690)
Cash at beginning of period

4,873,815

5,624,505
Cash at the end of the period

6,773,083

4,873,815
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 2015

 739,000 

3,693,818 

 256,976 

15,723

9,595,122

14,300,639













Profit for the period

 - 

 - 

 - 

 - 

2,754,768

2,754,768
Exchange differences on translating foreign operations

 - 

 - 

 - 

62,918

 - 

62,918
Total comprehensive income for the period

 - 

 - 

 - 

62,918

2,754,768

2,817,686
Transactions with owners:












Share-based payment

 - 

 - 

 - 

 - 

26,192

26,192
Deferred tax on share based payment

 - 

 - 

 - 

 - 

35,599

35,599
Dividends paid

 - 

 - 

 - 

 - 

(1,343,141)

(1,343,141)
Purchase of treasury shares

 - 

 - 

 - 

 - 

(15,461)

(15,461)
Balance at 31 December 2015

 739,000 

3,693,818 

 256,976 

78,641

11,053,079

15,821,514













Profit for the period

 - 

 - 

 - 

 - 

2,829,905

2,829,905
Exchange differences on translating foreign operations

 - 

 - 

 - 

415,966

 - 

415,966
Total comprehensive income for the period

 - 

 - 

 - 

415,966

2,829,905

3,245,871
Transactions with owners:












Share-based payment

 - 

 - 

 - 

 - 

13,585

13,585
Deferred tax on share based payment

 - 

 - 

 - 

 - 

(6,262)

(6,262)
Dividends paid

 - 

 - 

 - 

 - 

(1,452,689)

(1,452,689)
Transfer of treasury shares

 - 

 - 

 - 

 - 

51,800

51,800
Balance at 31 December 2016

 739,000 

3,693,818 

 256,976 

494,607

12,489,418

17,673,819













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 2015. 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 2016 or 2015, but is derived from those accounts. Statutory accounts for 2015 have been delivered to the Registrar of Companies and those for 2016 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 2015 or 2016 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 2016 of 72,635,976 (2015: 72,594,150) allowing for any adjustment made as a consequence of the Company having issued no Ordinary Shares during 2016 (2015: nil) and on the profit after tax for 2016 of 2,829,905 (2015: 2,754,768). The calculation of diluted earnings per share incorporates 2,457 Ordinary Shares (2015: nil) 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 25 May 2017 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
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