REG - Concurrent Tech. - Results for the year ended 31 December 2015 <Origin Href="QuoteRef">CNCT.L</Origin>

Concurrent TechnologiesAnnouncement

18/03/2016 07:45

RNS Number : 5000S
Concurrent Technologies PLC
18 March 2016
18 March 2016
Concurrent Technologies Plc
(the "Company" or the "Group")
Results for the year ended 31 December 2015
Concurrent Technologies Plc (AIM: CNC),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 2015.
Financial Highlights
 Turnover increased by 33.6% to 17.1m (2014: 12.8m)
 EBITDA increased by 40.0% to 4.2m (2014: 3.0m)
 Profit before Tax increased by 58.8% to 2.7m (2014: 1.7m)
 Cash in business plus deposits increased by 5.4% to 5.9m (2014: 5.6m)
 EPS increased by 66.2% to 3.79 pence (2014: 2.28 pence)
 Dividend increased by 5.56% to 1.90 pence per share for the year (2014: 1.80 pence)
Operational Highlights
 Continued success of sales associated with telecommunications base station test equipment using AMC architecture.
 84% growth in sales of products associated with scientific applications.
 25% improvement in VPX architecture product sales mainly for defence applications.
 7 new high performance processor boards, featuring the latest technology including 4th generation Intel Core processors, low power Intel Atom processors and latest Intel Xeon processors.
 Launch of GPU (Graphics Processing Unit) accelerator board to augment AMC boards.
 Investment in new equipment for manufacturing.
Michael Collins, Chairman, commented:
"We are a key supplier of Intel based technology to many major international companies and our products are used in a wide range of ever more sophisticated and high-reliability computer systems. While the outlook for the current worldwide economic climate is not clear, our core business is relatively resilient and there are many opportunities to introduce our highly innovative technology to new 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." 
"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. Work has already started on the next generation of high performance processor boards and we continue to advance the capabilities of these products with new and complementary software and firmware packages providing security and high-speed data transfers together with simple integration." 
"Sales in the first quarter of 2016 have been excellent and our current order book indicates a strong first half year performance."
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 19 May 2016 at 2:30pm.
Enquiries:
Concurrent Technologies Plc
+44 (0)1206 752 626
Glen Fawcett, CEO



Newgate (Financial PR)

Bob Huxford
+44 (0)207 653 9850
Robyn McConnachie



Cenkos Securities plc (NOMAD)

Neil McDonald
+44 (0)131 220 9771
Nick Tulloch/Beth McKiernan
+44 (0)131 220 9772/8
Extracts from the Strategic Report
Review of Operations 
The Group achieved excellent results in 2015, with record sales of 17.07m (2014: 12.81m) and profit before tax of 2.73m (2014: 1.72m). Earnings per share were 3.79 pence (2014: 2.28 pence).
The Group EBITDA (measured as Operating Profit plus Depreciation and Amortisation) for 2015 was 4.17m (2014: 3.00m). The gross margin for the year was 50.6% (2014: 51.2%). 
The successful sales of AMC architecture computers for telecommunications test equipment in 2014 continued into 2015 and overall sales for telecommunications applications grew by 45%. In 2015, there was also continued growth of sales associated with scientific applications, particularly for physics research projects, which have increased by 84%. In addition, sales for defence related applications grew by 27% as compared to 2014, mainly due to increased revenues from the USA. Exports increased by 24% as compared to 2014.
We continued to increase our investment in R&D from 2.76m in 2014 to 3.05m in 2015, of which 2.20m was capitalised (2014: 2.09m).
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 5.87m (2014: 5.62m).
Operational Highlights
Seven new high performance embedded computers were released during the year, featuring the latest technology processors including the new generation Intel Xeon processors. 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 main computer boards, we also released further accessory boards to supplement the functionality of our main products providing, for example, faster and easier network connectivity and additional data storage.
During the year we launched our first GPU (Graphics Processing Unit) accelerator board or accelerator engine which offers a very high level of parallel processing to augment the processing capability of our current Intel processor based AMC boards. Typical GPU accelerated computing applications include video transcoding, wireless test and infrastructure, image analysis and recognition, ISR (Intelligence, Surveillance and Reconnaissance), high speed physics experiments, simulations and encryption/decryption, where size, modularity, environmental requirements and power consumption make it impractical to use standard server based equipment.
There has also been continuing growth (25% in the year under review) in sales for our VPX architecture boards, which are mainly used in defence and surveillance related applications, including unmanned vehicles.
Due to the increase in production volumes, we acquired an additional pick-and-place module early in 2015, for the very fast placement of common components on boards. This has helped to speed up production throughput and avoid capacity issues.
Future Plans
We are a key supplier of Intel based technology to many major international companies and our products are used in a wide range of ever more sophisticated and high-reliability computer systems. While the outlook for the current worldwide economic climate is not clear, our core business is relatively resilient and there are many opportunities to introduce our highly innovative technology to new 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. 
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. Work has already started on the next generation of high performance processor boards and we continue to advance the capabilities of these products with new and complementary software and firmware packages providing security and high-speed data transfers together with simple integration. 
Sales in the first quarter of 2016 have been excellent and our current order book indicates a strong first half year performance.
Dividend
The Board has declared a second interim dividend of 1.20 pence per share (2014: 1.15 pence) which when added to the first interim dividend of 0.70 pence per share (2014: 0.65 pence) will make a total of 1.90 pence per share for the year (2014: 1.80 pence). This is an increase of 5.56% on dividends paid for 2014. The total cost of this second interim dividend will amount to 870,942. As in previous years, the Directors do not intend to recommend a final dividend. In order to account for the Easter holidays and to allow for our dividend payment to be scheduled as normal, the London Stock Exchange has agreed that the ex-dividend date for the final dividend is 29 March 2016 and the associated record date is 30 March 2016; the dividend payment date is 5 April 2016.
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 19 May 2016 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


2015

2014
CONTINUING OPERATIONS


Revenue

17,073,829

12,806,315
Cost of sales

8,437,564

6,247,748
Gross profit

8,636,265

6,558,567
Operating expenses

5,945,140

4,892,800
Group operating profit

2,691,125

1,665,767
Finance income

42,292

58,079
Profit before tax

2,733,417

1,723,846
Tax

(21,351)

76,148
Profit for the year

2,754,768

1,647,698





Other Comprehensive Income




Items that will be reclassified subsequently to profit or loss:




Exchange differences on translating foreign operations

62,918

90,539
Tax relating to components of other comprehensive income

-

-
Other Comprehensive Income for the year, net of tax

62,918

90,539
Total Comprehensive Income for the year

2,817,686

1,738,237





Profit for the period attributable to:




Equity holders of the parent

2,754,768

1,647,698





Total Comprehensive Income attributable to:




Equity holders of the parent

2,817,686

1,738,237





Earnings per share




Basic earnings per share

3.79p

2.28p





Diluted earnings per share

3.79p

2.28p


Consolidated Balance Sheet


As at

As at


31 December

31 December


2015

2014


 

 
ASSETS




Non-current assets




Property, plant and equipment

690,357

608,044
Intangible assets

6,307,044

6,018,931
Deferred tax assets

129,647

73,440


7,127,048

6,700,415
Current assets




Inventories

3,774,285

2,699,658
Trade and other receivables

2,520,573

2,790,426
Current tax assets

284,419

307,912
Other financial assets

1,000,000

 -
Cash and cash equivalents

4,873,815

5,624,505


12,453,092

11,422,501





Total assets

19,580,140

18,122,916





LIABILITIES




Non-current liabilities




Deferred tax liabilities

1,305,237

1,279,852
Long term provisions

9,968

7,314


1,315,205

1,287,166
Current liabilities




Trade and other payables

2,411,524

2,500,524
Short term provisions

31,987

33,922
Current tax liabilities

 -

665


2,443,421

2,535,111





Total liabilities

3,758,626

3,822,277





Net assets

15,821,514

14,300,639





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

78,641

15,723
Profit and loss account

11,053,079

9,595,122
Equity attributable to equity holders of the parent

15,821,514

14,300,639





Total equity

15,821,514

14,300,639


Consolidated Cash Flow Statement


Year to

Year to


31 December

31 December


2015

2014


 

 
Cash flows from operating activities




Profit before tax for the period

2,733,417

1,723,846
Adjustments for:




Finance income 

(42,292)

(58,079)
Depreciation 

224,778

178,059
Amortisation 

1,254,083

1,160,940
Impairment loss 

690,201

450,000
Profit on disposal of property, plant and equipment (PPE)

(1,334)

 -
Share-based payment 

26,192

6,279
Exchange differences 

86,711

29,060
Increase in inventories 

(1,074,627)

(149,102)
Decrease in trade and other receivables 

269,853

83,928
Increase/(decrease) in trade and other payables 

(88,371)

563,828
Cash generated from operations

4,078,611

3,988,759
Tax (paid)/received

48,956

284
Net cash generated from operating activities

4,127,567

3,989,043





Cash flows from investing activities




Interest received

42,292

58,079
Cash released from/(placed) on Deposit

(1,000,000)

2,602,689
Purchases of property, plant and equipment (PPE)

(305,874)

(303,816)
Proceeds from sale of PPE

1,500

-
Capitalisation of development costs and purchases of intangible assets

(2,231,637)

(2,161,809)
Net cash used in investing activities

(3,493,719)

195,143





Cash flows from financing activities




Equity dividends paid

(1,343,141)

(1,257,305)
Issue of Ordinary shares

-

300,001
Purchase of treasury shares

(15,461)

 -
Net cash used in financing activities

(1,358,602)

(957,304)





Effects of exchange rate changes on cash and cash equivalents

(25,936)

56,764





Net increase/(decrease) in cash

(750,690)

3,283,646
Cash at beginning of period

5,624,505

2,340,859
Cash at the end of the period

4,873,815

5,624,505







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 2014

 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

 - 

 - 

 - 

 - 

(1,257,305)

(1,257,305)
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













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 Ordinary 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















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 2014. 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 2015 or 2014, but is derived from those accounts. Statutory accounts for 2014 have been delivered to the Registrar of Companies and those for 2015 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 2014 or 2015 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 2015 of 72,594,150 (2014: 72,278,298) allowing for any adjustment made as a consequence of the Company having issued no Ordinary Shares during 2015 (2014: 1,200,000) and on the profit after tax for 2015 of 2,754,768 (2014: 1,647,698). The calculation of diluted earnings per share incorporates nil Ordinary Shares (2014: 11,992) 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 19 May 2016 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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