REG - Concurrent Tech. - Results for the year ended 31 December 2017

Concurrent TechnologiesAnnouncement

04/04/2018 07:05

RNS Number : 7137J
Concurrent Technologies PLC
04 April 2018
 

4 April 2018
Concurrent Technologies Plc
Results for the year ended 31 December 2017
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 2017.
Financial Highlights



·     Turnover of £16.2m (2016: £16.4m)
·     Gross profit increased by 1.0% to £9.0m (2016: £8.9m)
·     Gross margin increased to 55.4% (2016: 54.2%)
·     EBITDA increased by 2.1% to £4.4m (2016: £4.3m)
·     Profit before Tax increased by 2.3% to £3.0m (2016: £2.9m)
·     Dividend increased by 5% to 2.20 pence per share for the year (2016: 2.10 pence)
·     Cash in business plus deposits increased to £8.4m (2016: £7.8m)
 
Operational Highlights
 
·      Several new high performance embedded computer boards and accessory boards as well as modules were released during 2017. These included the new generation quad-core Intel® Xeon® processors.
·      In addition to providing the latest high performance and low power units across all of its open architectures for new applications and new customers, the Group's product portfolio allows for practical upgrade paths for its existing long life cycle customers.
 
Michael Collins, Chairman of Concurrent Technologies Plc, commented:
 
"The future outlook for the Group continues to be encouraging as both new and existing customers increasingly require more sophisticated boards and solutions.
The key to continued success is to expand the Group's range of products, with a particular focus on the OpenVPX™ bus architecture. In addition to boards and associated software the Group has recently started to provide development systems based on the OpenVPX™ and MicroTCA® architectures. These development systems will enable users to reduce their own product development times.
Competitive advantage can be maintained through continued R&D investment and constant expansion of the Group's range of advanced technology products, in particular targeting products and development systems for harsh environments and expanding the development of additional software and firmware products. The Group will continue to recruit additional engineers in the UK, USA and India to enable this development.
The Board continues to look for worldwide acquisition opportunities but sees many opportunities to grow the business organically into new market areas without taking unacceptable risks.
Sales and new opportunities arising this year have been encouraging and the Group's current healthy order book gives the Board confidence in the Group's performance for the full year."
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 22 May 2018 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 9848
+44 (0)207 653 9844














Cenkos Securities plc (NOMAD)
Neil McDonald
Beth McKiernan




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




 




Extracts from the Strategic Report
Review of Operations
The Group achieved sales of £16.22m (2016: £16.42m). The gross profit increased to £8.99m (2016: £8.89m) while the gross margin for the year improved to 55.4% (2016: 54.2%).
Profit before tax improved to £2.97m (2016: £2.90m) and the earnings per share was 3.79 pence (2016: 3.90 pence). EBITDA (measured as Operating Profit plus Depreciation and Amortisation) for the Group in 2017 also increased to £4.39m (2016: £4.31m).
The Group continued its long-term investment in R&D and invested £3.19m in 2017 (2016: £3.39m), of which £2.13m was capitalised (2016: £2.27m).
The Group continues to have no borrowings and again paid increased dividends during the year. Its cash balances plus short to medium term cash deposits at the year-end improved to £8.41m (2016: £7.78m).
Operational Highlights 
Several new high performance embedded computer boards and accessory boards as well as modules were released during 2017. These included the new generation quad-core Intel® Xeon® processors. In addition to providing the latest high performance and low power units across all of its open architectures for new applications and new customers, the Group's product portfolio allows for practical upgrade paths for its existing long life cycle customers.
Future Plans
The future outlook for the Group continues to be encouraging as both new and existing customers increasingly require more sophisticated boards and solutions.
The key to continued success is to expand the Group's range of products, with a particular focus on the OpenVPX™ bus architecture. In addition to boards and associated software the Group has recently started to provide development systems based on the OpenVPX™ and MicroTCA® architectures. These development systems will enable users to reduce their own product development times.
Competitive advantage can be maintained through continued R&D investment and constant expansion of the Group's range of advanced technology products, in particular targeting products and development systems for harsh environments and expanding the development of additional software and firmware products. The Group will continue to recruit additional engineers in the UK, USA and India to enable this development.
The Board continues to look for worldwide acquisition opportunities but sees many opportunities to grow the business organically into new market areas without taking unacceptable risks.
Sales and new opportunities arising this year have been encouraging and the Group's current healthy order book gives the Board confidence in the Group's performance for the full year.
Dividend
The Board has declared a second interim dividend of 1.30 pence per share (2016: 1.30 pence) which when added to the first interim dividend of 0.90 pence per share (2016: 0.80 pence) will make a total of 2.20 pence per share for the year (2016: 2.10 pence). This is an increase of 4.8% on dividends paid for 2016. The total cost of this second interim dividend amounted to £945,340. As in previous years, the Directors do not intend to recommend a final dividend.
Annual General Meeting
The Annual General Meeting this year will be held on 22 May 2018.
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












2017






2016




CONTINUING OPERATIONS






£






£




Revenue






16,222,732






16,423,978




Cost of sales






7,231,876






7,529,867




Gross profit






8,990,856






8,894,111




Operating expenses






6,086,516






6,040,302




Group operating profit






2,904,340






2,853,809




Finance income






65,117






48,705




Profit before tax






2,969,457






2,902,514




Tax






213,836






72,609




Profit for the year






2,755,621






2,829,905


























Other Comprehensive Income




















Items that will be reclassified subsequently to profit or loss:




















Exchange differences on translating foreign operations






(189,150)






415,966




Tax relating to components of other comprehensive income






-






-




Other Comprehensive Income for the year, net of tax






(189,150)






415,966




Total Comprehensive Income for the year






2,566,471






3,245,871


























Profit for the period attributable to:




















Equity holders of the parent






2,755,621






2,829,905


























Total Comprehensive Income attributable to:




















Equity holders of the parent






2,566,471






3,245,871


























Earnings per share




















Basic earnings per share






3.79p






3.90p


























Diluted earnings per share






3.79p






3.90p




 




Consolidated Balance Sheet












As at






As at












31 December






31 December












2017






2016












£






£




ASSETS




















Non-current assets




















Property, plant and equipment






482,254






414,209




Intangible assets






7,397,512






6,846,520




Deferred tax assets






170,495






112,128












8,050,261






7,372,857




Current assets




















Inventories






3,222,800






3,239,855




Trade and other receivables






2,740,335






3,327,629




Current tax assets






135,224






93,156




Other financial assets






2,502,281






1,000,000




Cash and cash equivalents






5,892,304






6,773,083












14,492,944






14,433,723


























Total assets






22,543,205






21,806,580


























LIABILITIES




















Non-current liabilities




















Deferred tax liabilities






1,473,815






1,291,468




Long term provisions






4,097






6,699












1,477,912






1,298,167




Current liabilities




















Trade and other payables






2,332,599






2,810,655




Short term provisions






16,644






23,939




Current tax liabilities






-  






 -  












2,349,243






2,834,594


























Total liabilities






3,827,155






4,132,761


























Net assets






18,716,050






17,673,819


























EQUITY




















Capital and reserves




















Share capital






739,000






739,000




Share premium account






3,699,105






3,693,818




Capital redemption reserve






256,976






256,976




Cumulative translation reserve






305,457






494,607




Profit and loss account






13,715,512






12,489,418




Equity attributable to equity holders of the parent






18,716,050






17,673,819


























Total equity






18,716,050






17,673,819




 




Consolidated Cash Flow Statement












Year to






Year to












31 December






31 December












2017






2016












£






£




Cash flows from operating activities




















Profit before tax for the period






2,969,457






2,902,514




Adjustments for:




















Finance income       






(65,117)






(48,705)




Depreciation       






194,529






196,370




Amortisation       






1,294,457






1,254,826




Impairment loss       






286,888






499,509




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






(3,750)






233,840




Share-based payment       






27,448






13,585




Exchange differences       






(110,755)






76,461




Decrease/(increase) in inventories       






17,055






534,430




(Increase)/decrease in trade and other receivables       






587,294






(927,530)




Increase/(decrease) in trade and other payables       






(487,953)






558,815




Cash generated from operations






4,709,553






5,294,115




Tax received






(83,808)






116,142




Net cash generated from operating activities






4,625,745






5,410,257


























Cash flows from investing activities




















Interest received






65,117






48,705




Cash released from/(placed) on deposit






(1,502,281)






-




Purchases of property, plant and equipment (PPE)






(267,855)






(138,181)




Proceeds from sale of PPE






3,750






-




Capitalisation of development costs and purchases of intangible assets






(2,133,046)






(2,290,889)




Net cash used in investing activities






(3,834,315)






(2,380,365)


























Cash flows from financing activities




















Equity dividends paid






(1,599,804)






(1,452,689)




Exercise of share options






-






51,800  




Purchase of treasury shares






-






-




Net cash used in financing activities






(1,599,804)






(1,400,889)


























Effects of exchange rate changes on cash and cash equivalents






(72,405)






270,265


























Net increase/(decrease) in cash






(880,779)






1,899,268




Cash at beginning of period






6,773,083






4,873,815




Cash at the end of the period






5,892,304






6,773,083




 
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 2016






     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)




Purchase 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


























































Profit for the period






                -  






                -  






                -  






                -  






2,755,621






2,755,621




Exchange differences on translating foreign operations






                -  






                -  






                -  






(189,150)






                  -  






(189,150)




Total comprehensive income for the period






                -  






                -  






                -  






(189,150)






2,755,621






2,566,471




Transactions with owners:




















































Share-based payment






                -  






                -  






                -  






                -  






27,448






27,448




Deferred tax on share based payment






                -  






                -  






                -  






                -  






48,116






48,116




Dividends paid






                -  






                -  






                -  






                -  






(1,599,804)






(1,599,804)




Transfer of treasury shares






                -  






5,287  






                -  






                -  






(5,287)  






                -  




Balance at 31 December 2017






     739,000






3,699,105






     256,976






305,457






13,715,512






18,716,050


























































 
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 2016. 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 2017 or 2016, but is derived from those accounts. Statutory accounts for 2016 have been delivered to the Registrar of Companies and those for 2017 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 2016 or 2017 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 2017 of 72,718,490 (2016: 72,635,976) after adjustment for treasury shares and any adjustment made as a consequence of the Company having issued no Ordinary Shares during 2017 (2016: nil) and on the profit after tax for 2017 of £2,755,621 (2016: £2,829,905). The calculation of diluted earnings per share incorporates 3,504 Ordinary Shares (2016: 2,457) 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 22 May 2018 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.gocct.com.
 



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