REG - Concurrent Tech. - Final results for the year ended 31 December 2025
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RNS Number : 0826A Concurrent Technologies PLC 13 April 2026
13 April 2026
Concurrent Technologies Plc
(the "Company" or the "Group")
Final results for the year ended 31 December 2025
Double digit growth with a record order intake and continued strategic
execution
Concurrent Technologies Plc (AIM: CNC), a designer and manufacturer of
leading-edge computer products, systems, and mission-critical solutions used
in high-performance markets by some of the world's major OEMs, announces its
audited final results for the year ended 31 December 2025 ("FY25").
Financial highlights
2025 2024 % change
Revenue £45.9m £40.3m +14%
Gross profit £24.5m £20.0m +22%
Profit before tax (PBT) £6.5m £5.2m +25%
Earnings per share 5.86p 5.49p +7%
EBITDA £10.1m £7.8m +29%
Order intake £47.0m £41.0m +15%
Closing cash £14.4m £13.7m +5%
· Double-digit growth in revenue, PBT and Adjusted EBITDA, reflecting continued
progress across the Products and Systems business units.
o Products business unit reinforced market leadership in the year, with revenue
up 6% to £40.5m (FY24: £38.2m) and profit up 8% to £6.8m (FY24: £6.3m).
o Systems business unit gaining momentum, with revenue of £5.4m, up 157% (FY24:
£2.1m).
· Total order intake increased to a record £47m, driven by deepening
relationships with global defence primes and the increasing relevance of
Concurrent's technology to next-generation programmes.
· The Group's cash position improved further to £14.4m (FY24: £13.7m),
providing flexibility to invest in growth opportunities.
Operational highlights
· Continued investment in R&D to maintain performance leadership in
mission-critical applications.
· Operational capacity expanded in both the UK and United States, with a new
manufacturing capability in Colchester and the new state-of-the-art facility
in Los Angeles.
· Technology leadership strengthened and product portfolio broadened through the
launch of five differentiated new products, with another five already launched
in the current year, along with expanded capabilities aligned with open
standards such as SOSA and VPX.
· Successfully increasing speed to market demonstrated through early access to
Intel® Xeon® 6516P-B processors, six months ahead of general availability,
and launch of Bragi, the first 3U VPX PIC incorporating NVIDIA's Blackwell
processor.
· The Group is increasingly being selected for larger scale contracts, and in
FY25 strengthened its Design Services offering with Concurrent's largest
contract to date at $6.2m, broadening the Company's role within customer
programmes and deepening long-term engagement.
Outlook
· Positive momentum in early FY26 supported by record order intake, a growing
pipeline of design wins and expanded operational capacity.
· Growing portfolio of long-lifecycle design wins provides enhanced multi-year
revenue visibility, with several programmes expected to transition into
sustained production and revenue generation from FY26.
· While the macro-economic environment remains uncertain, underlying market
dynamics remain supportive and the strength of the Company's pipeline, the
robust balance sheet and disciplined supply chain management mean that the
Board is confident of delivering results for FY26 in line with market
expectations.(1)
Miles Adcock, CEO of Concurrent Technologies, commented: "Concurrent delivered
another year of strong financial and strategic progress in 2025, with
double-digit growth in revenue and profit alongside a record order intake.
This performance reflects continued momentum in our core Products business and
encouraging progress in Systems, where ongoing investment is building a
platform for future scale.
"The strength of our relationships with leading global defence primes and the
growing portfolio of long-visibility design wins provide increasing visibility
as programmes begin to transition into sustained production. At the same time,
continued investment in our operational infrastructure and technology
capability is enhancing our ability to support larger and more complex
customer programmes.
"While cognisant of the broader macro-economic environment, underlying market
dynamics remain supportive and the strength of the Company's pipeline, our
robust balance sheet and disciplined supply chain management mean that the
Board is confident of delivering results for FY26 in line with market
expectations(1)."
(1) As at 10 April 2026, the Board understands that market expectations for
FY2026, based on published analyst forecasts, are for revenue of £52.0m, and
profit before tax of £8.0m.
Enquiries:
Concurrent Technologies Plc +44 (0)1206 752626
Miles Adcock - CEO
Kim Garrod - CFO
Alma Strategic Communications +44 (0)20 3405 0205
Hannah Campbell / Josh Royston / Will Merison
Investec Bank plc (Financial Adviser, Nominated Adviser and Corporate Broker) +44 (0)20 7597 5970
Nick Prowting / Virginia Bull / Arnav Kapoor / Tommy Jackson
About Concurrent Technologies Plc
Concurrent Technologies Plc develops and manufactures high-end embedded
plug-in cards and systems for use in a wide range of high-performance,
long-life cycle applications within the telecommunications, defence, security,
telemetry, scientific and aerospace markets, including applications within
extremely harsh environments. The processor products feature
Intel® processors, including the latest generation embedded Intel® Core™
processors, Intel® Xeon® and Intel Atom™ processors. The products are
designed to be compliant with industry specifications and support many of
today's leading embedded operating systems. The products are sold world-wide.
For more information on Concurrent Technologies Plc and its products please
visit www.concurrent.tech.
Chair statement
FY25 has been another year of strong progress for Concurrent, marked by
sustained growth, record order intake and the continued execution of our
long-term strategy. The Group delivered further revenue and profit growth on
the prior year, strengthened its market position and continued to invest in
the capabilities required to support future scale. The Board remains confident
that the strategic decisions taken over recent years, to accelerate
innovation, broaden our offering and deepen relationships with global
customers, are now establishing a platform from which to deliver solid growth
as design wins begin to translate into sustained production revenues from FY26
onwards.
The year in review
The Group delivered FY25 revenue and profit growth in line with market
expectations, which were upgraded in at the interim results in September 2025,
with revenue increasing by more than 14% year on year and profit before tax
rising by over 25%. This performance reflects the continued momentum across
both the Products and Systems business units, underpinned by disciplined
execution and an increasing contribution from higher-value programmes. Order
intake reached a record level during the year, providing strong multi-year
visibility and reinforcing the quality of Concurrent's customer relationships.
Demand was particularly strong across Europe and Asia-Pacific, highlighting
the Group's increasingly international footprint and reputation among leading
global primes.
Cash at year end was £14.4m, providing the financial resilience and
flexibility required to continue investing in growth, while navigating
short-term uncertainties such as delays to US Department of Defense budget
approvals and wider supply chain considerations. Design wins secured in prior
years are beginning to transition into production, while new wins achieved
during FY25 further extend the pipeline of long-term opportunities. These
programmes typically span many years, offering attractive lifetime value and
reinforcing the importance of sustained investment in research and
development.
The Systems business continued to gain momentum during the year, further
building on the successful US acquisition of Philips Aerospace in 2023, with
design services emerging as an increasingly important growth vector. The
announcement of the Group's largest single order to date, including an
expanded scope covering Automatic Test Equipment, is clear validation of this
capability and highlights the opportunity to continue to broaden Concurrent's
role within customer programmes.
Operationally, the Group has continued to invest in capacity and
infrastructure to support future growth, including the completion of new
facilities in Los Angeles and expansion of our existing UK manufacturing in
Colchester with the relocation of engineering and support functions to an
adjacent facility. These investments are strategic, ensuring Concurrent is
well positioned to meet increasing customer demand in the years ahead.
Board, governance and people
The Board continues to focus on maintaining strong corporate governance, clear
strategic oversight and an appropriate balance between growth investment and
financial discipline.
During the year, the Board has remained actively engaged with management as
the business scales. The senior leadership team appointments post-year end,
including Jon Jayal as Managing Director of Products and Cody Cox as Director
of Embedded Technology, reinforce the breadth of Concurrent's leadership
expertise and position the business well for continued success.
Dividend
The Board recognises the importance of delivering sustainable shareholder
returns alongside continued investment in the business. The Board proposes,
subject to shareholder approval at the Company's AGM on 10 June 2026, a final
dividend of 1.155p, (FY24: 1.1p) to be paid on 3 July 2026 to shareholders on
the register on 19 June 2026, reflecting the Group's strong performance during
FY25, while retaining sufficient capital to fund future growth opportunities.
The Board remains committed to maintaining an appropriate balance between
reinvestment and returns.
Outlook
Building on the momentum from FY25, Concurrent has entered FY26 with a strong
pipeline, record order intake and a growing number of design wins, many of
which reflect programmes where the Group has already been down selected,
providing good visibility on future revenue. While cognisant of the
macro-economic environment, underlying market dynamics remain supportive, and
alongside the resilience of the Products business, the Systems unit offers
additional long-term upside. With a strong balance sheet and a proven
strategy, the Board believes Concurrent is well placed to build a business of
greater scale and strategic importance in the years ahead.
Mark Cubitt
Chairman
CEO statement
Overview
It's been another successful year for Concurrent, marked by continued growth
and disciplined execution of our strategy, as we accelerate innovation and
strengthen the foundations for long-term growth. We are increasingly
recognised as a leading high-performance partner in mission-critical defence
computing, benefiting from rising defence investment, the adoption of open
standards such as SOSA, and a clear industry shift toward outsourced hardware
development.
Financial performance
We delivered a robust financial performance for FY25, with revenue of £45.9m
(FY24: £40.3m) and profit before tax of £6.5m (FY24: £5.2m). This
performance represents strong double-digit growth, driven by continued
momentum in the Products and Systems business units, achieved despite delays
to US Department of Defense budget approvals and the recent US government
shutdown. Underpinned by particularly strong demand from customers in Europe
and the Asia-Pacific region, order intake for FY25 was at a record level of
approximately £47m (FY24: £41m). This reflects the continued strengthening
of Concurrent's reputation among leading global defence primes and the
increasing relevance of our technology to next generation defence programmes,
as we are increasingly selected for larger, higher value contracts.
The Group continues to secure design wins across both the Products and Systems
business units, underpinning confidence in its medium- and long-term growth
prospects. These wins typically convert to purchase orders within two to three
years and generate revenue over a seven- to ten-year period. Pleasingly,
design wins secured in FY25 have an estimated lifetime value of £145m,
providing strong visibility over future revenues and reinforcing the Group's
focus on long-term customer engagement.
The Group ended FY25 with a £14.4m cash position (FY24: £13.7m), giving us
the flexibility to continue investing in growth and capabilities.
Products
The Products division had another successful year, reinforcing our position at
the cutting edge of rugged computing. We combined early access to
next-generation technologies with disciplined execution to bring
differentiated capability to market ahead of our peers.
The launch of Kratos in March 2025 marked a step-change in performance, more
than doubling the computing power of our previous generation. Securing early
access to Intel's Xeon 6516P-B processor, six months ahead of general
availability, enabled us to be among the first to market and underlines the
strategic value of our Prestige Partner status. This momentum continued with
the introduction of Bragi, which significantly enhances our ability to support
data-intensive, AI-enabled defence applications and strengthens our broader
systems offering. Bragi is our first NVIDIA-enabled graphics solution,
developed with EIZO Rugged Solutions and the first 3U VPX PIC to incorporate
the NVIDIA Blackwell architecture.
We also made encouraging progress in Design Services, securing and
subsequently expanding a $6.2m programme with a major US defence prime, our
largest single order to date. Beyond its immediate commercial value, this
engagement validates our technical capability, demonstrates growing customer
trust, and is accelerating the development of engineering expertise that will
benefit both our Products and Systems units over time. Customer feedback on
the programme has been very positive to date, with Concurrent meeting all
milestone delivery dates during 2025.
Since the period end, we have continued to build on this momentum, already
launching five new products. The launch of Kratos (32 Core) further extends
our performance leadership, while a new family of rugged embedded computing
products based on Intel's latest Core™ Ultra architecture, including Eir,
Hermes II, Magni II and Caelus, broadens our portfolio with enhanced
processing capability, security features and long-term lifecycle support.
Together, these developments expand our addressable market and position us
strongly to support next-generation mission-critical applications.
Systems
Our Systems business is in its early stages but is gaining real momentum.
While the division's performance was lower than we had expected in FY25 due to
delays to customer ordering following the US government shutdown, we remain
confident the business can achieve sustainable profitability as order flow
normalises. During the year we launched Apollo, a compact, rugged, rapidly
deployable computing system that integrates expertise from both our Products
and Systems teams. This is strategically important, as it demonstrates our
ability to deliver complete, integrated solutions rather than standalone
components.
The growth and ambition of the Systems business unit has been reinforced by
the successful move into its new state-of the-art facility in Los Angeles.
This marks an important milestone for the Group, strengthening our presence in
the USA and positioning it for continued growth.
The pipeline of opportunities continues to grow and we are confident that the
momentum built will continue throughout the year ahead.
Partners
Partnerships continue to play a critical role in expanding Concurrent's
capabilities and product offerings. Further to strengthening our relationship
with EIZO, through Bragi, we also signed an agreement with New Wave,
a leading designer of cutting-edge FPGA products using AMD's latest Xilinx
chips.
This partnership allows us to market New Wave's full product portfolio outside
the USA, providing access to innovative technology and broadening our
international reach. In addition, we partnered with Amphenol to incorporate
their high-quality switches into our systems, further enhancing the breadth
and flexibility of our solutions.
These collaborations strengthen our ability to offer comprehensive, integrated
solutions to our customers and position the business to deliver on the launch
of several new products in 2026.
Markets
Concurrent is well positioned at the intersection of a structural defence
spending upcycle and the ongoing digital transformation of military platforms,
both of which are driving sustained demand for rugged, high-performance
computing. Defence budgets across NATO are rising, and the shift toward open
standards such as VPX and SOSA is deliberately designed to reduce vendor
lock-in and encourage competition, advantaging agile, specialist suppliers
like Concurrent over larger incumbents. At the same time, a number of
competitors have stepped back from legacy VME architectures, creating a clear
opportunity for us to gain share in markets that remain large relative to its
current scale.
These trends are reinforced by a broader industry move toward outsourced
hardware design and modular architectures, which plays directly to
Concurrent's strengths in speed to market, technical differentiation and
vertical integration. Against this backdrop, the Group's growing portfolio of
long-visibility design wins, increasing traction in Systems, and expanded
manufacturing capacity provide strong leverage to what remains a supportive
and expanding end market.
People
Everything we do at Concurrent is underpinned by a strong culture focused on
technical excellence, collaboration and ambition, enabling us to attract and
retain the best talent needed to drive our growth. During the year, the
Group's headcount increased by 15.6% in the UK to 148 and by 9.4% in the US to
35. Employee engagement remains strong, with a Trust survey score of 80%,
placing the Group in the upper quartile of comparable organisations.
Post-period end, we strengthened our leadership team with the appointment of
Jon Jayal as Managing Director of Products. Jon previously served as CEO of
Nexteq plc and brings deep senior leadership experience and strong product
knowledge aligned with Concurrent's technology and market focus. We also
welcomed Cody Cox as Director of Embedded Technology, whose expertise in
Modular Open Systems Architecture and SOSA aligned platforms will be
invaluable as we scale our defence offerings.
M&A
In September 2023, we acquired California based Phillips Aerospace and, two
and half years on, we are delighted with the strategic progress made. As well
as expanding our US presence, the acquisition has added specialist engineering
talent, strengthened customer relationships, and significantly contributed to
our growing orderbook. We continue to actively evaluate disciplined M&A
opportunities that enhance our geographic footprint and end-market
capabilities, prioritising acquisitions with strong strategic fit, clear
operational synergies, and alignment with our product platform and long-term
growth roadmap.
Summary and outlook
We made strong progress in FY25, delivering a solid financial performance
while continuing to execute against our strategy. We have strengthened our
product portfolio through the launch of differentiated technologies, continued
to build momentum in our Systems business, and taken an important step forward
in the development of our Design Services offering.
We have entered FY26 with encouraging momentum, supported by record order
intake and a substantial pipeline of opportunities, the majority of which
relate to programmes where we have already been selected and are awaiting
contract award. While cognisant of the broader macro-economic environment,
underlying market dynamics remain supportive and the strength of the Company's
pipeline, our robust balance sheet and disciplined supply chain management
mean that the Board is confident of delivering results for FY26 in line with
market expectations.
Miles Adcock
Chief Executive
Officer
CFO review
FY25 was another year of significant progress for Concurrent, delivering
double-digit growth in both revenue and profit, alongside a strengthened
closing cash position. This performance was achieved despite a challenging
environment in the US, our largest geographic customer-base. FY25 represents
another important milestone in our journey to significant growth from design
wins.
Revenue
Group revenue for FY25 increased to £45.9m (FY24: £40.3m), generated from
the sale of products, services and systems. Our established Products business
delivered £40.5m of revenue, comprising £37.2m of product revenue and £3.2m
of project revenue. Concurrent sales to the US grew by 30%, with Systems
accounting for most of this (23%). The US now accounts for more than half of
Concurrent's revenue at 52% (FY24: 45%). The UK, a focus home market, grew by
45% to £4.2m (FY24: £2.9m).
Systems delivered significant growth in revenue to £5.4m v £2.1m in FY24,
representing growth of 157%. While this is encouraging, we believe this
performance was slowed by the difficult US environment with delayed approval
of the Defense budget and the US government shutdown. We expect a pickup in
momentum in FY26, as conditions normalise and as design wins convert into
higher-volume production orders.
Gross Profit
Gross profit increased to £24.5m (FY24: £20m), resulting in a gross margin
of 53.3% (FY24: 49.4%). This was predominantly driven by excellent procurement
management, and the increased buying power that Concurrent is experiencing as
it scales.
The Group kept price increases to a minimal level, to retain its attractive
customer proposition while also achieving strong gross margins. Concurrent
Products business achieved a gross margin of 57% (FY24: 50%) and Systems made
a 16% gross margin (FY24: -7%). Systems is a project-based business, so the
gross profit includes the cost of manpower to deliver the customer design
projects, hence is lower. Systems is at a point in its journey where the
revenue is dominated by custom design contracts, with greater production
orders to come in future periods.
Cost Base
The cost base increased by £3.2m from FY24 to £18.0m (FY24: £14.8m). This
is driven by several factors including:
· Salaries increased by £2.4m, reflecting pay increases and headcount growth
(closing headcount: 183 (FY24: 155))
· Capitalisation of product development increased by £0.8m compared with FY24,
reducing the net profit and loss (P&L) charge. A further £0.7m
capitalised related to the implementation of a new enterprise resource
planning (ERP) system, to be amortised over 5 years.
· Amortisation increased by £0.8m as newly developed products completed their
engineering phase. We expect amortisation to continue increasing as more
complex and higher-value development programmes reach maturity, partially
offset by older, lower-value products reaching the end of their life cycle.
The US dollar (USD) has been a challenge in FY25 with major movements in the
rate, peaking at $1.38 to £1 towards the end of the year. We are managing
currency movements more proactively, with hedging major contracts, and
transacting sales of currency at various points, but we will always have a
risk as a UK, pounds sterling company, company, with large amounts of customer
payments in USD. We do have a natural hedge as well with many of our suppliers
in USD, but timing is always key. The cost base will continue to develop
across the business. Systems remains in the early phase of its journey, and
will require continued investment in people and infrastructure as it grows.
Across the Group, growth will drive further investment in engineering
capability, functional support and a new facility planned for FY26.
Profit
Concurrent delivered profit before tax of £6.5m in FY25 (FY24: £5.2m), an
increase of 25%. This was driven by increase gross profit, net of increased
costs. This represents a profit margin of 14% (FY24: 13%). The Systems
business reported a loss in FY25 of -£0.3m (FY24: -£1.1m), due to the level
of revenue received in a difficult year. We expect this to achieve breakeven
or beyond in FY26, subject to external factors in the US. This demonstrates
the strength of the core business - the products, which delivered an 17%
profit margin.
Cash
Net cash closed at £14.4m (FY24: £13.7m), in line with the table below:
£m
Opening cash 13.7
Cash generated from operations 7.0
Cash used in investing activities (5.3)
Cash from financing activities (1.0)
Closing cash 14.4
Cash generated in the year was £0.7m, with strong cash generation from
Operations but significant investment in Product development, property
improvements and equipment (e.g. the new facility in US for Systems), and
dividend payment of c. £1m We have developed a renewed banking relationship
and a Rolling Credit Facility (RCF) which provides Concurrent with more
flexibility in regards to its cash generation and investments. FY26 will see
considerable investment in our new and refreshed facility in Colchester, and a
significant increase generated in capacity, to support our future growth
plans.
Kim Garrod
Chief Financial Officer
Consolidated Statement of Comprehensive Income
For the year ended 31 December 2025
Note
Year to Year to
31 December 31 December
2025 2024
£ £
Revenue 3 45,870,248 40,324,083
Cost of sales (21,411,445) (20,348,752)
Gross profit 24,458,803 19,975,331
Administrative expenses (18,035,426) (14,782,064)
Other Income 206,557 -
Group operating profit 4 6,629,934 5,193,267
Interest Costs (125,099) (93,284)
Finance income 5 158,312 79,294
Exceptional Items (145,805) -
Profit before tax 6,517,342 5,179,277
Tax 6 (1,457,981) (476,839)
Profit for the year 5,059,361 4,702,438
Other Comprehensive Income
Exchange differences on translating foreign operations 60,279 (53,556)
Other Comprehensive Income for the year, net of tax 60,279 (53,556)
Total Comprehensive Income for the year 5,119,640 4,648,882
Profit for the period attributable to:
Equity holders of the parent 5,059,361 4,702,438
Total Comprehensive Income attributable to:
Equity holders of the parent 5,119,640 4,648,882
Earnings per share
Basic earnings per share 8 5.86p 5.49p
Diluted earnings per share 8 5.58p 5.18p
Consolidated Statement of Financial Position
For the year ended 31 December 2025
Note
31 December 31 December
2025 2024
£ £
ASSETS
Non-current assets
Property, plant and equipment 11 4,671,360 2,686,772
Intangible assets 12 16,978,211 15,392,208
21,649,571 18,078,980
Current assets
Inventories 15 11,669,593 10,875,616
Trade and other receivables 16 12,114,658 8,104,112
Current tax assets - 14,957
Cash and cash equivalents 14,373,596 13,706,703
38,157,847 32,701,389
Total assets 59,807,419 50,780,369
LIABILITIES
Non-current liabilities
Deferred tax liabilities 13 2,468,524 2,123,264
Trade and other payables 17 1,726,030 446,477
Long term provisions 19 355,611 326,596
4,550,165 2,896,337
Current liabilities
Trade and other payables 17 10,445,223 8,940,768
Short term provisions 19 35,375 18,256
Current tax liabilities 4,398 -
10,484,996 8,959,024
Total liabilities 15,035,162 11,855,361
Net assets 44,772,257 38,925,008
EQUITY
Capital and reserves
Share capital 21 869,890 861,692
Share premium account 10,453,983 9,950,231
Merger reserve 1,283,457 1,283,457
Capital redemption reserve 256,976 256,976
Cumulative translation reserve (122,552) (182,832)
Profit and loss account 32,030,503 26,755,483
Equity attributable to equity holders of the parent 44,772,257 38,925,008
Total equity 44,772,257 38,925,008
Company Statement of Financial Position
For the year ended 31 December 2025
Note
31 December 31 December
2025 2024
£ £
ASSETS
Non-current assets
Property, plant and equipment 11 2,452,414 2,468,789
Intangible assets 12 14,718,490 12,788,842
Deferred tax assets 13 - -
Investments 14 2,382,392 1,947,312
Trade and other receivables (non current) 16 3,223,456 3,301,753
22,776,752 20,506,697
Current assets
Inventories 15 10,892,647 10,094,952
Trade and other receivables 16 13,974,528 8,980,097
Current tax assets - -
Other financial assets 18 - -
Cash and cash equivalents 12,566,418 10,692,223
37,433,593 29,767,272
Total assets 60,210,344 50,273,969
LIABILITIES
Non-current liabilities
Deferred tax liabilities 13 2,429,773 1,890,207
Trade and other payables 17 167,462 428,913
Long term provisions 19 355,611 326,596
2,952,846 2,645,716
Current liabilities
Trade and other payables 17 8,733,296 7,011,848
Short term provisions 19 35,375 18,256
Current tax liabilities 48,333 32,368
8,817,005 7,062,472
Total liabilities 11,769,851 9,708,188
Net assets 48,440,494 40,565,781
EQUITY
Capital and reserves
Share capital 21 869,890 861,692
Share premium account 10,453,983 9,950,231
Merger reserve 1,283,457 1,283,457
Capital redemption reserve 256,976 256,976
Profit and loss account 35,576,188 28,213,425
Equity attributable to equity holders of the parent 48,440,494 40,565,781
Total equity 48,440,494 40,565,781
This statement should be read in conjunction with accompanying notes.
The Company has taken advantage of section 408 to not include its own profit
and loss.
The Parent Company profit after tax for the year was £7,147,104 (2024:
£6,628,833).
Consolidated Cash Flow Statement
For the year ended 31 December 2025
Note
Year to Year to
31 December 31 December
2025 2024
£ £
Cash flows from operating activities
Profit before tax for the period 6,517,342 5,179,277
Adjustments for:
Finance income (158,312) (79,294)
Finance Costs 125,099 93,284
Depreciation 904,601 673,058
Amortisation 2,331,936 1,936,561
Impairment loss 225,174 4,088
Share-based payment 945,627 744,755
Exchange differences 403,967 27,547
Decrease/(increase) in inventories (793,977) 1,082,884
(Increase)/decrease in trade and other receivables (4,010,546) (1,661,285)
Increase/(decrease) in trade and other payables 1,425,498 (749,800)
Cash generated from operations 7,916,418 7,251,074
Tax received/(paid) (862,043) 641,594
Net cash generated from operating activities 7,054,375 7,892,668
Cash flows from investing activities
Interest received 158,312 79,294
Purchases of property, plant and equipment (PPE) (1,116,057) (877,072)
Capitalisation of development costs and purchases of intangible assets (4,335,608) (3,382,525)
Net cash used in investing activities (5,293,353) (4,180,302)
Cash flows from financing activities
Equity dividends paid (950,732) (856,377)
Repayment of leasing liabilities (364,902) (233,230)
Interest paid (125,099) (93,284)
Issue of Ordinary shares 511,950 -
Sale/(purchase) of treasury shares 7,018 58,500
Net cash used in financing activities (921,765) (1,124,391)
Effects of exchange rate changes on cash and cash equivalents (172,364) -
Net increase/(decrease) in cash 666,893 2,587,975
Cash at beginning of period 13,706,703 11,118,728
Cash at the end of the period 14,373,596 13,706,703
Consolidated Statement of Changes in Equity
For the year ended 31 December 2025
Capital Cumulative Profit
Share Share Merger redemption translation and loss Total
capital premium reserve reserve reserve account Equity
£ £ £ £ £ £ £
Balance at 1 January 2024 861,692 9,950,231 1,283,457 256,976 (129,276) 22,100,347 34,323,427
Profit for the period - - - - - 4,702,438 4,702,438
Exchange differences on translating foreign operations - - - - (53,556) - (53,556)
Total comprehensive income for the period - - - - (53,556) 4,702,438 4,648,882
Share-based payment - - - - - 744,755 744,755
Deferred tax on share based payment - - - - - 5,820 5,820
Dividends paid - - - - - (856,377) (856,377)
Sale/Purchase of treasury shares - - - - - 58,500 58,500
Balance at 31 December 2024 861,692 9,950,231 1,283,457 256,976 (182,832) 26,755,483 38,925,008
Profit for the period - - - - - 5,059,361 5,059,361
Exchange differences on translating foreign operations - - - - 60,279 - 60,279
Total comprehensive income for the period - - - - 60,279 5,059,361 5,119,640
Share based payment - 945,627 945,627
Deferred tax on share based payment - - - - - 220,764 220,764
Dividends paid - - - - - (950,732) (950,732)
Sale/Purchase of treasury shares - - - - - - -
Shares issued during the year 8,198 503,752 - - - - 511,950
Balance at 31 December 2025 869,890 10,453,983 1,283,457 256,976 (122,553) 32,030,503 44,772,257
Company Statement of Changes in Equity
For the year ended 31 December 2025
Capital Profit
Share Share Merger redemption and loss Total
capital premium reserve reserve account Equity
£ £ £ £ £ £
Balance at 1 January 2024 861,692 9,950,231 1,283,457 256,976 21,631,894 33,984,250
Total profit and comprehensive income for the period - - - - 6,628,833 6,628,833
Share-based payment - - - - 744,755 744,755
Deferred tax on share based payment - - - - 5,820 5,820
Dividends received - - - - (856,377) (856,377)
Sale/Purchase of treasury shares - - - - 58,500 58,500
Balance at 31 December 2024 861,692 9,950,231 1,283,457 256,976 28,213,425 40,565,781
Total profit and comprehensive income for the period - - - - 7,147,104 7,147,104
Share based payment 945,627 945,627
Deferred tax on share based payment - - - - 220,764 220,764
Dividends paid - - - - (950,732) (950,732)
Sale/Purchase of treasury shares - - - - - -
Merger reserve - - - - - -
Shares issued during the year 8,198 503,752 - - - 511,950
Balance at 31 December 2025 869,890 10,453,983 1,283,457 256,976 35,576,188 48,440,493
Notes to the financial statements
For the year ended 31 December 2025
Note 1 - General information
The principal activity of Concurrent Technologies plc ('the Company') and its
subsidiaries (together 'the Group') is the design, development, manufacture
and marketing of single board computers for system integrators and original
equipment manufacturers.
Concurrent Technologies plc is the Group's ultimate Parent Company. It is
incorporated and domiciled in the United Kingdom. Concurrent Technologies
plc's shares are listed on the Alternative Investment Market of the London
Stock Exchange.
The Group's financial statements are presented in pounds sterling (£), which
is also the functional currency of the Parent Company. They have been approved
for issue by the Board of Directors on 11 April 2026.
Note 2 - Summary of significant accounting policies
Basis of preparation
These financial statements are for the year ended 31 December 2025. They have
been prepared in accordance with UK-Adopted International Accounting Standards
and with the requirements of the Companies Act 2006. These financial
statements have been prepared under the historical cost convention.
New and amended IFRS Accounting Standards that are effective for the current
year
In the current year, the Group has applied a number of amendments to IFRS
Accounting Standards issued by the International Accounting Standards Board
(IASB) that are mandatorily effective for an accounting period that begins on
or after 1 January 2026. Their adoption has not had any material impact on the
disclosures or on the amounts reported in these financial statements.
· IFRS 7 & 9: Amendments to the classification and measurement
of financial instruments;
· IFRS 7 & 9: Contracts referencing Nature-dependent
Electricity;
· Annual improvements to IFRS Accounting Standards - Volume 11;
· IFRS 1: Practise Statement 1 Management Commentary; and
· Disclosures about Uncertainties in the Financial Statements.
New and revised IFRS accounting standards in issue but not yet effective
Certain standards, amendments to, and interpretations of, published standards
have been published that are mandatory for the Group's accounting years
beginning on or after 1 January 2027 or later years and which the Group has
decided not to adopt early:
· IFRS 18: Presentation and Disclosure in Financial Statements;
· IFRS 19: Subsidiaries without Public Accountability Disclosures;
and
· Amendments to IAS 21: Translation to a Hyperinflationary
Presentation Currency.
None of the above listed changes are anticipated to have a material impact on
the Group's financial statements. IFRS 18 will impact the presentation of the
income statement but not have an impact on balances or transactions.
Changes in significant accounting policies
There have been no changes in the year to significant accounting policies in
the period.
The policies set out below have been consistently applied to all the years
presented, except where stated.
Basis of presentation and disclosure exemptions
The consolidated financial statements are presented in accordance with IAS 1
Presentation of Financial Statements. The Group has elected to present the
'Income Statement' and 'Statement of Other Comprehensive Income' in one
statement.
The company financial statements are separate financial statements prepared in
accordance with FRS 101. The Company is a qualifying entity as defined in FRS
101 and has applied the disclosure exemptions available under FRS 101 in the
preparation of these financial statements.
As permitted by FRS 101, the Company has taken advantage of the following
disclosure exemptions:
· A cash flow statement and related notes (IAS 7)
· Comparative information in respect of certain disclosures (IAS 1)
· Disclosure requirements of IFRS 7 (Financial Instruments:
Disclosures)
· Disclosure requirements of IFRS 13 (Fair Value Measurement)
· Related party disclosures (IAS 24), where transactions are with
wholly-owned subsidiaries.
Going concern
The Directors have reviewed the approved budget and projections sensitised for
different scenarios through to April 2027, considering general and specific
market conditions, status of suppliers, liquidity and funding requirements and
the needs of subsidiary companies.
The Directors have assessed the viability of the Group using extreme
assumptions to reverse stress test the cash forecast. Assumptions include
extreme reduction in sales, decrease in gross margin, and reduced reduction in
inventory levels. Additionally, within these scenarios we have excluded any
potential beneficial impacts such as tighter management of working capital and
cost reduction measures. These have been excluded to retain headroom in the
forecast and to provide a worst expected case scenario. The forecast is that
significant cash balances remain within the Group and there is no borrowing
requirement leaving the Directors confident that the Group will be able to
meet its obligations and as such, there is no material uncertainty over the
going concern assumption.
Basis of consolidation
The consolidated financial statements incorporate the financial statements of
the Company and its subsidiary undertakings. A subsidiary is a company
controlled directly by the Group. Control is achieved where the Group has the
power over the investee, rights to variable returns and the ability to use the
power to affect the investee's returns.
The acquisition method views a business combination from the perspective of
the combining entity that is identified as the acquirer. The acquirer
recognises the assets acquired and liabilities and contingent liabilities
assumed, including those not previously recognised by the acquiree, where
recognition criteria are met. Measurement of these items is generally at fair
value at acquisition date. The measurement of the acquirer's assets and
liabilities is not affected by the transaction, nor are any additional assets
or liabilities of the acquirer recognised as a result of the transaction,
because they are not the subjects of the transaction. All subsidiaries are
100% wholly owned and are fully controlled by the Group. All intra-Group
transactions, balances, income and expenses are eliminated on consolidation.
Revenue recognition
Revenue is recognised by the Group using the five-step process outlined in
IFRS 15:
· Identifying a contract with a customer
· Identifying the performance obligations
· Determining the transaction price
· Allocating the transaction price to the performance obligations
· Recognising revenue when the performance obligations are
satisfied.
The Group's principal source of revenue is from the sale of single board
computers and associated products (which could include software products which
are required by the customer to be added to the boards sold, for example
security software). Revenue from the sale of products, including any added
software (this is so interlinked with the single board computer (SBC) that
they are considered one performance obligation under IFRS 15), is recognised
when the Group satisfies its performance obligations by transferring the
promised goods to its customers. Control is considered to transfer, at the
point in time, when the customer takes undisputed responsibility for the
goods. This depends on the terms and conditions of sale with the customer.
There are three main terms for delivery: 1) On delivery terms being the Group
is responsible for the goods until delivered at the stated delivery address
under the contract. 2) Free on Board contract terms means the goods remain the
Group's responsibility until they are placed on board the vehicle for
shipping, with export duty being the Group's responsibility as well. The
customer is responsible after this point. 3) Ex-works contract terms, where
the customer is responsible from the point the goods leave the factory or
appropriate site, often, under control of the customer's defined shipping
arrangement.
The Group provides a basic warranty on its products but does offer customers
the opportunity to purchase an extended warranty of one, two or three years
for their boards. As the customer has the option of purchasing the additional
warranty separately, this is accounted for as a separate performance
obligation under IFRS 15 where the Group will repair or replace faulty boards
at no additional charge to the customer. Contract liabilities on these
extended warranties is recognised and released to income over the warranty
period until the performance obligation is satisfied. During the twelve
months to 31 December 2025, £38,725 was released to Profit and Loss.
Revenue recognised for Systems contracts, under IFRS 15, was £5,485,060 for
2025 accounts. Systems revenue generated through the Philips acquisition in
2023 will continue to grow in 2026 as the Company continues to mature and grow
organically. Revenue will normally be recognised over time, in accordance with
IFRS 15, using the input method based on the percentage of completion (using
costs versus budgeted/ forecasts of costs at completion), and will be
dependent on the conditions of each specific contract (in line with the
five-step process above). Where applicable, the output method is used based on
contracts with specific milestones where control passes to the customer over a
period of time and an assessment is performed as to the value of services
provided.
For our single board business, invoices are raised on despatch, with payment
terms being usually 30 days from date of invoice. For the Systems business,
payment terms will be based on negotiations and could include pro-forma and
30-day payment terms but will be subject to negotiated positions
Cost of sales
Cost of sales consists of external purchases and inventory used on delivering
specific contracts, plus the direct manpower (predominantly manufacturing)
related to the fulfilment of the specific contracts and direct ancillary costs
such as shipping.
Administrative expenses
This includes all non-direct costs (e.g. general overheads such as rent,
rates, sales and indirect functions). This also includes non-direct
engineering expenses.
Foreign currencies
The functional and presentational currency of the Company is pounds sterling
(GBP). Transactions in currencies other than the functional currency of the
individual entities within the Group are recorded at the rates of exchange
prevailing on the dates of the transactions. Foreign exchange gains and losses
resulting from the settlement of such transactions and from the remeasurement
of monetary items at year-end, exchange rates are recognised in profit or
loss.
In the Group's financial statements, all assets, liabilities and transactions
of Group entities with a functional currency other than GBP are translated
into pounds sterling upon consolidation. The functional currencies of the
entities in the Group have remained unchanged during the reporting period.
On consolidation, assets and liabilities have been translated into GBP at the
closing rate at the reporting date. Foreign Exchange differences arising for
intercompany transactions are charged within profit and loss. Income and
expenses have been translated into GBP at the rates of exchange prevailing on
the dates of the transactions over the reporting period. In line with IAS 21,
an average rate is used for the period unless exchange rates fluctuate
significantly and then the weighted average rate is used. Exchange differences
are charged/credited to other comprehensive income and recognised in the
cumulative translation reserve in equity. On disposal of a foreign operation
the cumulative translation differences recognised in equity are reclassified
to profit or loss and recognised as part of the gain or loss on disposal.
Goodwill and fair value adjustments arising on the acquisition of a foreign
entity are treated as assets and liabilities of the foreign entity and
translated into GBP at the closing rate.
Inventories
Inventories are stated at the lower of cost and net realisable value on a
first-in first-out basis. Cost includes materials, direct labour and an
attributable proportion of manufacturing overheads based on normal levels of
activity. Net realisable value represents the estimated selling price after
allowing for the costs of realisation and, where appropriate, the cost of
conversion from their existing state into a finished condition. Provision is
made where necessary for obsolete, slow moving or defective inventories.
Leases
A lease is defined as a contract, or part of a contract, that conveys the
right to use an asset (the underlying asset) for a period of time in exchange
for consideration. To apply this definition, the Group assesses whether the
contract meets three key evaluations which are whether the contract contains
an identified asset, which is either explicitly identified in the contract or
implicitly specified by being identified at the time the asset is made
available to the Group; the Group has the right to obtain substantially all of
the economic benefits from use of the identified asset throughout the period
of use, considering its rights within the defined scope of the contract; and
the Group has the right to direct the use of the identified asset throughout
the period of use.
At lease commencement the Group recognises a right of use asset and a lease
liability on the statement of financial position. The right of use asset is
measured at cost and initial direct costs incurred by the Group. The right of
use asset is then depreciated on a straight-line basis over the term of the
lease or the estimated useful life of the asset if shorter. At commencement
date the Group measures the lease liability at the present value of the future
lease payments, discounted using the Group's incremental borrowing rate.
The Group has elected to account for short-term leases and leases of low-value
assets using the recognition exemptions and payments in relation to these are
recognised as an expense in the appropriate period.
Right of use assets have been included in property, plant and equipment and
the corresponding lease liability included in trade and other payables.
Detailed lease liability information is included in Notes 17 and 20.
Property, plant and equipment
Property, plant and equipment is stated at original historical cost, net of
depreciation and any provision for impairment. Depreciation is charged to
write off the cost of assets together with any cost directly attributable with
bringing the asset into use, less estimated residual value, on a straight-line
basis over their estimated useful lives in accordance with the table below:
Plant and machinery 5-15 years on a straight-line basis
Fixtures, fittings, and equipment 3-7 years on a straight-line basis
Computer equipment 3-5 years on a straight-line basis
Improvements to short leasehold property 5-10 years on a straight-line basis
The gain or loss arising on the disposal or retirement of an asset is
determined as the difference between the sales proceeds and the carrying
amount of the asset and is recognised in the statement of comprehensive
income.
The residual values and useful economic lives of property, plant and equipment
are reviewed annually.
Intangible assets
All intangible assets are stated at cost less accumulated amortisation and any
accumulated impairment losses.
Goodwill
Goodwill arose upon the acquisition of Phillips Aerospace made on 6 September
2023, which was defined as a single cash generating unit (CGU). The assets
acquired are not capable of individually generating revenue on their own, so
they are deemed combined within the business as a whole to generate revenue,
and therefore the business (Phillips Aerospace) is defined as a single CGU.
The goodwill is the amount attributable to the excess of consideration over
the fair value of the net assets acquired, including expected synergies,
future growth, critical accreditations, and technical knowledge of the
employee, and is recorded in accordance with IFRS 3, 'Business Combinations'.
Goodwill is reviewed and tested annually for impairment.
Research costs
Research costs are charged directly to administrative expense in the statement
of comprehensive income as incurred.
Development costs
Development costs are capitalised as intangible assets if the asset can be
separately identified; it is in the control of the Group; future economic
benefits will accrue to the Group; it is technically feasible; the Group has
adequate resources to complete the development of the asset; and the costs can
be reliably determined.
Capitalised development costs comprise all directly attributable costs
necessary to create, produce and prepare the asset to be capable of operating
in the manner intended by management, including development-related overheads.
Amortisation commences upon completion of the development or when the asset
becomes available for commercial production. Capitalised development costs are
amortised on a straight-line basis, over the estimated product life which is
generally five to seven years. The asset will be reviewed annually for
indicators of impairment and whenever indicators suggest that the carrying
amount may not be recovered throughout the period in which it is being used,
the asset will be subject to a full impairment review. All intangible assets,
including those not yet available for use, will be reviewed for indicators of
impairment.
All other development costs are recorded under administrative expense in the
statement of comprehensive income in the period they are incurred. The
following table shows products with a net book value (NBV) of £500k or more:
Product NBV Remaining Amortisation Period
Board A 2,141,930 70 months
Board B 467,656 84 months
Board C 1,157,608 65 months
Board D 960,373 76 months
Board E 264,278 84 months
Board F 712,546 46 months
Board G 590,562 78 months
Board H 581,063 60 months
Customer relationships
Customer relationships were acquired as part of the acquisition of Phillips
Aerospace on 6 September 2023 and have applied an income approach valuation
using the multi-period excess earning method with a useful economic life of
ten years.
Other intangible assets
Intangible assets purchased separately, such as software licences that do not
form an integral part of hardware, are capitalised at cost and amortised over
their useful lives of three to seven years.
The carrying values of intangible assets with finite lives are reviewed for
impairment when events or changes in circumstance indicate the carrying value
may be impaired. If any such indication exists, the recoverable amount of the
asset is estimated to determine the extent of impairment loss.
The recoverable amount of the asset will be used as for all other intangible
assets (e.g. backlog and pipeline opportunities), except where the asset does
not generate independent cashflows i.e. additional software packages sold as
an add-on to a board.
Impairment of property, plant and equipment, and intangible assets
At each statement of financial position date, the Group reviews the carrying
amounts of its tangible and intangible assets to determine whether there is
any indication that those assets have suffered an impairment loss. If any such
indication exists, the recoverable amount of the asset is estimated to
determine the extent of the impairment loss.
Recoverable amount is the higher of fair value less costs to sell and value in
use. In assessing value in use, the estimated future cash flows (using both
backlog and weighted pipeline) are discounted (13.7% rate used) to their
present value. If the recoverable amount of an asset is estimated to be less
than its carrying amount, the carrying amount of the asset is reduced to its
recoverable amount. An impairment loss is immediately recognised as an expense
in the statement of comprehensive income.
Where an impairment loss subsequently reverses, the carrying amount of the
asset is increased to the revised estimate of its recoverable amount, but so
that the increased carrying amount does not exceed the carrying amount that
would have been determined had no impairment loss been recognised for the
asset in prior years. A reversal of an impairment loss is recognised as a
credit to expenses immediately.
Taxation
Current tax is the tax currently payable based on taxable profit for the year.
Current tax for current and prior periods shall, to the extent unpaid, be
recognised as a liability. If the amount already paid in respect of current
and prior periods exceeds the amount due for those periods, the excess shall
be recognised as an asset.
The tax expense for the period comprises current and deferred tax. Tax is
recognised in the income statement, except to the extent that it relates to
items recognised in other comprehensive income, or directly in equity. In this
case, the tax is also recognised in other comprehensive income or directly in
equity, respectively.
The Group takes advantage of the merged scheme and Development Expenditure
Credits (RDEC) scheme in respect of R&D credits. These are included as
other income within Administrative Expenses in the Statement of Comprehensive
Income (SOCI) to the extent that they relate to expenditure recognised in the
SOCI. Credits relating to expenditure that has been capitalised are recognised
as deferred income in the Statement of Financial Position and are released
over the useful life of the assets.
Deferred income taxes are calculated using the liability method on temporary
differences. Deferred tax is generally provided on the difference between the
carrying amounts of assets and liabilities and their tax bases. However,
deferred tax is not provided on the initial recognition of goodwill, nor on
the initial recognition of an asset or liability unless the related
transaction is a business combination or affects tax or accounting profit.
Deferred tax on temporary differences associated with shares in subsidiaries
is not provided if reversal of these temporary differences can be controlled
by the group and it is probable that reversal will not occur in the
foreseeable future. In addition, tax losses available to be carried forward as
well as other income tax credits to the Group are assessed for recognition as
deferred tax assets.
Deferred tax liabilities are provided in full, with no discounting. Deferred
tax assets are recognised to the extent that it is probable that the
underlying deductible temporary differences will be able to be offset against
future taxable income. Current and deferred tax assets and liabilities are
calculated at tax rates that are expected to apply to their respective period
of realisation, provided they are enacted or substantively enacted at the
year-end date.
Financial instruments
Financial assets and financial liabilities are recognised in the statement of
financial position when the Group becomes a party to the contractual
provisions of the instrument.
(i) Financial assets
Financial assets are held at amortised cost if the assets are held with the
objective to collect contractual cash flows and where the contractual terms of
the financial assets give rise to cash flows that are solely payments of
principal and interest on the principal amount outstanding. After initial
recognition at transaction price being the amount of consideration that is
unconditional, receivable balances are measured at amortised cost using the
effective interest method, less loss allowance for expected credit losses. The
Group's cash and cash equivalents, other financial assets (fixed-term
deposits), trade and most other receivables fall into this category of
financial instruments.
The Group applies the IFRS 9 simplified approach to measuring expected credit
losses which uses a lifetime expected loss allowance for all trade
receivables.
(ii) Financial liabilities
Trade and other payables are not interest bearing and are initially recognised
at fair value plus transaction costs directly attributable to their
acquisition and then subsequently measured at amortised cost.
(iii) Financial liabilities and equity
Financial liabilities and equity instruments are classified according to the
substance of the contractual arrangements entered into. Financial liabilities
are obligations to pay cash or other financial assets and are recognised when
the Group becomes a party to the contractual provisions of the instrument.
They are initially recognised at fair value plus transaction costs directly
attributable to their acquisition and subsequently measured at amortised cost
using the effective interest method. An equity instrument is any contract that
evidences a residual interest in the assets of the Group after deducting all
of its liabilities.
Investments in subsidiaries
Investments in subsidiaries, as reported in the Parent Company financial
statements, are included at cost less provision for impairment.
Finance income
Finance income comprises interest income accrued on a time basis, by reference
to the principal outstanding at the effective interest rate applicable.
Dividends
Dividends to the Company's shareholders are recognised as a liability and
deducted from shareholders' equity in the period in which the shareholders'
right to receive payment is established.
Employee benefits
Retirement benefits
The Company operates a defined contribution retirement benefit plan. The cost
of the defined contribution plan is charged to administrative expenses in the
statement of comprehensive income on the basis of contributions payable by the
Company during the year.
Share-based payments
The Group issues equity-settled, share-based payments to certain employees.
Equity-settled, share-based payments are measured at fair value at the date of
grant. In the consolidated Financial Statements, the fair value determined at
the grant date of equity-settled, share-based payments is expensed on a
straight-line basis over the vesting period based on the Group's estimate of
shares which will eventually vest, together with a corresponding increase in
equity. In the Financial Statements of the Company, equity-settled,
share-based payments issued to employees of the Company are treated in the
same manner as in the consolidated Financial Statements. Equity-settled,
share-based payments issued to employees of subsidiary undertakings are
treated in the Financial Statements of the Company as an increase in
investment in subsidiary companies, together with a corresponding increase in
equity, over the vesting period based on the Group's estimate of shares which
will eventually vest.
Fair value is measured by use of a binomial option pricing model and has been
adjusted for the estimated effect of non-transferability, exercise
restrictions and behavioural considerations.
For options that have non-market vesting conditions such as EPS growth, the
award has been valued using a Black-Scholes Model. This type of model is
typically used where no market conditions are associated with the awards.
Options granted from November 2021 have been valued using the Black-Scholes
Model. Options granted pre-November 2021 used the binomial option pricing
model.
Treasury shares
The Company's shares which have been purchased and not cancelled are held as
treasury shares and deducted from shareholders' equity. No gain or loss is
recognised in profit or loss on the purchase, sale, issue or cancellation of
the shares.
Reserves
Share premium account represents the difference between the price received on
the sale of shares and their par value.
Capital redemption reserve arose from the purchase of shares and represents
their nominal value.
Cumulative translation reserve arises from the consolidation of foreign
subsidiaries.
Share capital represents the nominal value of shares that have been issued.
Profit and loss account includes all current and prior period retained profits
and share-based payments less treasury shares held at the statement of
financial position date.
Merger reserve represents the difference between the price of the shares
issued on acquisition of Phillips Aerospace and their par value.
Provisions
Provisions are recognised when present obligations resulting from a past event
will probably lead to an outflow of economic resources from the Group and
amounts can be estimated reliably. Provisions reported are for non-purchased
warranties (all additional purchased warranties are accounted for under
contract liabilities). The obligation under IFRS 15 is for the Group to repair
or replace faulty boards at no additional charge to the customer.
EPS
Basic earnings per share (EPS) is calculated by dividing the profit
attributable to the owners of Concurrent Technologies plc, excluding any costs
of servicing equity other than ordinary shares, by the weighted average number
of ordinary shares outstanding during the financial year.
DEPS
Diluted earnings per share (DEPS) is calculated by dividing the profit
attributable to the owners of Concurrent Technologies plc, excluding any costs
of servicing equity other than Ordinary Shares, by the weighted average number
of Ordinary Shares and share options outstanding during the financial year.
Key judgements and estimates
Estimates and judgements are continually evaluated and are based on historical
experience and other factors, including expectation of future events that are
believed to be reasonable under the circumstances.
Estimates
The resulting accounting estimates will, by definition, seldom equal the
related actual results. The estimates and assumptions that have a significant
risk of creating a material adjustment to the carrying amounts of assets and
liabilities are discussed below.
Development costs
To determine whether an impairment is required regarding the carrying value of
the capitalised development costs, management has applied the criteria of IAS
36 'Impairment of Assets' and have projected the future economic benefits of
the asset. Reviewing against current backlog and estimated weighted, (based on
probability factors, predominantly driven by stage of the opportunity), future
pipeline opportunities, which will be achieved from this investment using an
estimated useful life of seven years. Management considers the review to be
sufficiently robust regarding reasonable movements in discount rates (current
rate used 13.7%).
A 1% increase in the discount rate would not lead to a material increase in
impairment, so therefore, the discount rate is not considered to be the key
source of estimation uncertainty, but it is the assumptions made around
conversion of future sales that is key to the estimate. Where indicators
exist, management then record judgement-based impairment charges which
consider project specific technical issues, customer feedback, opportunity for
product substitution and other market factors. Estimation uncertainty relates
to assumptions about future results.
The Group has performed a sensitivity analysis against our top five boards in
terms of NBV, using the key input of gross margin, and the result is the gross
margin would have to reduce between 50% and 70%, depending on the board, to
achieve a breakeven position. This provides the Directors with comfort in
respect of headroom in the impairment calculations.
Inventory
A slow moving inventory provision has been made where necessary where
inventory has had no movement in three years or more as per our accounting
policy. Items that are provided for, should they start being used again, will
have the provision removed/reversed.
R&D Tax Credits
The Group takes advantage of the Research and Development Expenditure Credits
(RDEC) merged scheme in respect of R&D credits. These are included as
other income within Administrative Expenses in the Statement of Comprehensive
Income (SOCI) to the extent that they relate to expenditure recognised in the
SOCI. Credits relating to expenditure that has been capitalised are recognised
as deferred income in the Statement of Financial Position and are released
over the useful life of the assets. The merged scheme has ben accounting for
in line with IAS 20 government grants.
Goodwill and intangible assets on acquisition
Application of IFRS 3
In 2023, the Group acquired Phillips Aerospace and accordingly reviewed the
acquisition of the entity in accordance with IFRS 3 'Business Combinations'.
Any assets that were identified as being separately identifiable assets have
been valued using appropriate valuation techniques in order to determine the
fair value of intangible assets acquired as part of the business combination
aside from any goodwill arising as a result of the transaction. Management has
undertaken an impairment assessment and there is no indication of impairment
of any business combinations.
These are accordingly recorded as separate intangible assets in Note 12 and
have been reviewed for impairment as noted in Note 12.
CGU
The classification of Phillips Aerospace as a single CGU is a key judgement
based on the understanding of the elements that were purchased. The assets
purchased (e.g., accreditation, customer relationships, working capital etc.)
are not capable of generating revenue in their own right, individually, and
therefore, they are judged to be intrinsically linked as one to define the
business of Phillips Aerospace to be one single CGU. Accordingly, any goodwill
arising as a result of this acquisition has been allocated to the CGU
identified.
The subsequent impairment and amortisation of the goodwill and assets are
based on key estimates and judgements, reviewing the capability of the
business from key forecasts of revenue and orders. These are tested for
impairment in the same way as development costs (i.e. the use of a discounted
cashflow forecast to determine the value in use of the CGU, which has been
prepared in accordance with IAS 36).
Capitalisation of development costs IAS 38 - Intangible Assets
Judgement is required when distinguishing the research and development phases
of new projects and determining whether the recognition requirements for
capitalisation of the development costs are met under IAS 38. Research covers
pre-solution options often through feasibility studies of various
technologies. Development is the application of research findings or other
knowledge to plan or design for the production of new or substantially
improved products before the start of commercial production. Development costs
are capitalised as an intangible asset if all the following criteria are met:
there is technical feasibility of completing the asset so that it will be
available for use or sale; the intention is to complete the asset and use or
sell it; there is an ability to use or sell the asset; the asset will generate
future economic benefits and demonstrate the existence of a market or the
usefulness of the asset if it is to be used internally; the availability of
adequate technical, financial and other resources to complete the development
and to use or sell it; and the ability to measure reliably the expenditure
attributable to the intangible asset.
Judgements
Research and Development
Judgement is required when distinguishing the research and development phases
of new projects and determining whether the recognition requirements for
capitalisation of the development costs are met. Research covers pre-solution
options often through feasibility studies of various technologies. Development
is the application of research findings or other knowledge to plan or design
for the production of new or substantially improved products before the start
of commercial production. Development costs are capitalised as an intangible
asset if all the following criteria are met: there is technical feasibility of
completing the asset so that it will be available for use or sale; the
intention is to complete the asset and use or sell it; there is an ability to
use or sell the asset; the asset will generate future economic benefits and
demonstrate the existence of a market or the usefulness of the asset if it is
to be used internally; the availability of adequate technical, financial and
other resources to complete the development and to use or sell it; and the
ability to measure reliably the expenditure attributable to the intangible
asset.
Revenue Recognition
Judgement is required when assessing the most appropriate method for revenue
recognition under IFRS 15. For certain contracts, a judgement has been applied
that under certain circumstances, milestones related to acquisition of key
materials at the outset of a contract is representative of value to the
customer and therefore faithfully depicts revenue earned, revenue has
therefore been recorded in accordance with these milestones for output method
contracts.
Note 3 - Segment reporting
The Directors consider that there is only one operating segment, Concurrent
Group, which undertakes the design, manufacture and supply of high-end
embedded computer products and systems. The Company's products can be supplied
to more than one business sector and are sold on a global basis. All
manufacturing of computer products is undertaken in the UK.
Whilst looking at sales by business sectors, the Executive Board members of
the Company as the Chief Operating Decision Maker do not make decisions
regarding allocation of Group resources on such a basis.
The Board in its entirety, i.e. including Non-Executive members, is not
involved in making operational decisions. Further, Group profits are not
categorised for internal reporting purposes by sectors or geography. The
historical and anticipated performance of the Group is therefore reported to
the Board of Concurrent Technologies plc as a single entity. Thus, the
Directors consider that there are no additional segments required to be
disclosed under IFRS 8 - Operating Segments but have provided the following
geographic sales analysis. No geographical analysis of non-current assets is
provided as non-current assets outside of the UK are immaterial.
During 2025, £6.1m or 13% of Group Revenue depended on a single customer. In
2024, £5.9m or 15% of Group Revenue depended on a single customer.
All board revenue is recognised at a point in time, with systems and warranty
(immaterial) revenue recognised over time.
Year to Year to
31 December 2025
31 December
£
2024
£
United States 23,667,198 18,333,933
Italy 6,131,646 3,661,980
United Kingdom 4,236,392 2,929,047
Other Europe 5,864,756 8,098,949
Rest of the World 5,970,256 7,300,174
45,870,248 40,324,083
2025 2024
£
£
Products 37,225,716 37,836,380
Projects 3,159,472 1,225,720
Systems 5,485,060 1,261,981
45,870,248 40,324,081
Note 4 - Group operating profit
Year to Year to
31 December 2025
31 December
£
2024
£
Group operating profit is stated after charging to cost of sales:
Cost of inventories recognised as expense 18,755,599 18,393,779
Staff costs (see Note 10) 2,655,846 2,244,166
Group operating profit is stated after charging/(crediting) to operating
expenses:
Net foreign exchange (gains)/losses 617,060 (303,144)
Total expensed research and development costs 1,819,283 2,573,902
Amortisation of intangible assets 2,331,936 1,936,561
Impairment of intangible assets 225,174 4,088
Depreciation of owned property, plant and equipment 586,440 468,683
Depreciation of right of use (ROU) Asset 318,161 204,374
Staff costs (see Note 10) 12,394,737 10,540,722
Group principal auditor's remuneration:
Audit of Group financial statements pursuant to legislation 183,500 158,300
Other non-auditor remuneration relating to taxation compliance 46,275 39,200
Note 5 - Finance income
Year to Year to
31 December 2025
31 December
2024
£
£
Interest earned on bank deposits 158,312 79,294
Note 6 - Tax
Year to Year to
31 December 2025
31 December
£
2024
£
Current tax expense 899,386 -
Current deferred tax 876,226 1,014,506
Prior year tax expense (7,429) (17,007)
Prior year deferred tax (310,202) (520,660)
Current overseas tax charge - -
1,457,981 476,839
The tax assessed on the Group's profit before tax for the year is less than
the standard rate of corporation tax in the UK. The applicable rate of
corporation tax for the year to 31 December 2025 was 25.00% (2024: 25.00%).
The differences are explained below:
Year to Year to
31 December
31 December
2025
2024
£
£
Profit before tax 6,517,342 5,179,277
Corporation tax on profit before tax at standard rate 1,629,335 1,294,819
Expenses not deductible for tax purposes 19,560 13,771
UK tax credits - (731,734)
Effect of change in UK tax rate - -
Share options (261,706) 4,736
Impact of overseas losses 388,423 432,914
Adjustment in respect of previous years (317,631) (537,667)
Tax charge/(credit) 1,457,981 476,839
Factors that may affect future tax charges are the UK tax rates, and any
changes to R&D tax credits would have an impact on the tax position of the
Group and Parent company.
Note 7 - Dividend
2025 2024 2025 2023
£
£
pence per
pence per
share
share
Final (for the previous year) 950,732 856,377 1.10 1.00
Interim - -
950,732 856,377 1.10 1.00
Interim dividends are recognised in the Financial Statements in the period
they are paid. The Directors have proposed a 1.155p dividend for the year
ended 31 December 2025 as a resolution for the Annual General Meeting (total
dividend for 2024 was £950,732).
Note 8 - Earnings per share
Basic earnings per share is calculated by dividing the profit attributable to
ordinary equity holders for the period by the weighted average number of
Ordinary Shares outstanding during the period. Diluted earnings per share is
calculated by adjusting the weighted average number of Ordinary Shares
outstanding to assume conversion of all contracted dilutive potential Ordinary
Shares. The Company only has one category of dilutive potential Ordinary Share
namely the share options.
The inputs to the earnings per share calculation are shown below:
Year to Year to
31 December
31 December
2025
2024
£
£
Profit after tax 5,059,361 4,702,438
Year to Year to
31 December
31 December
2025
2024
No.
No.
Weighted average number of Ordinary Shares 86,390,532 85,676,344
for basic earnings per share
Adjustment for share options 4,330,295 5,106,393
90,720,827 90,782,737
Year to Year to
31 December
31 December
2025
2024
Earnings per share amount 5.86p 5.49p
Diluted earnings per share amount 5.58p 5.18p
Note 9 - Directors' emoluments
Year to Year to
31 December
31 December
2025
2024
£
£
Fees and emoluments 1,372,030 1,295,912
Pension contributions 19,000 16,298
1,391,030 1,312,210
The emoluments of Directors disclosed above include in respect of the highest
paid Director:
Fees and emoluments 612,017 614,719
Pension contributions - -
The number of Directors to whom retirement benefits are accruing under a 1 1
defined contribution scheme is:
Detailed information concerning Directors' emoluments, shareholdings and
options is provided in the Report of the Remuneration Committee.
Note 10 - Staff costs
Group Company Group Company
Year to
Year to
Year to
Year to
31 December
31 December
31 December
31 December
2025
2025
2024
2024
£
£
£
£
Wages and salaries 11,997,019 8,986,367 10,160,327 7,822,904
Social security costs 1,409,070 944,043 1,277,769 985,571
Defined contribution pension costs 693,400 634,035 602,037 547,017
Share-based payment 951,094 523,271 744,755 370,083
15,050,583 11,087,716 12,784,888 9,725,575
Average number of employees: No No No No
Production 45 45 40 39
Other 141 99 115 89
186 144 155 128
Direct employment costs capitalised for the year to 31 December 2025 were
£3,587,579 (2024: £2,656,170).
Note 11 - Property, plant and equipment
Group Improvements to short leasehold property Right of Plant, fixtures & computer equipment Total
£
use asset
£
£
£
Cost
At 1 January 2024 1,005,651 1,262,252 4,995,195 7,263,098
Foreign exchange movement (2,018) - (2,785) (4,803)
Additions 28,629 - 868,482 897,111
At 31 December 2024 1,032,262 1,262,252 5,860,892 8,155,406
Foreign exchange movement (48,565) - (32,093) (80,658)
Additions 469,110 1,789,539 646,947 2,905,596
Disposals (104,784) - (724,524) (829,308)
At 31 December 2025 1,348,023 3,051,791 5,751,222 10,151,036
Accumulated depreciation
At 1 January 2024 507,205 573,312 3,716,698 4,797,215
Foreign exchange movement (1,067) 533 (1,105) (1,639)
Charge for the year 121,182 204,374 347,501 673,058
At 31 December 2024 627,320 778,219 4,063,094 5,468,634
Foreign exchange movement (6,278) - (7,825) (14,103)
Charge for the year 104,382 318,161 482,058 904,601
Disposals (140,083) - (739,373) (879,456)
At 31 December 2025 585,341 1,096,380 3,797,955 5,479,676
Net book value
At 31 December 2024 404,942 484,033 1,797,797 2,686,772
At 31 December 2025 762,682 1,955,411 1,953,268 4,671,360
Company Improvements to short leasehold property Right of Plant, fixtures & computer equipment Total
£
use asset
£
£
£
Cost
At 1 January 2024 841,023 1,165,260 4,633,970 6,640,253
Additions 28,629 - 684,704 713,333
At 31 December 2024 869,652 1,165,260 5,318,674 7,353,586
Additions 150,681 - 504,793 655,474
Disposals - - (577,526) (577,526)
At 31 December 2025 1,020,333 1,165,260 5,245,942 7,431,534
Accumulated depreciation
At 1 January 2024 350,755 503,834 3,411,455 4,266,044
Charge for the year 96,452 187,443 334,858 618,753
At 31 December 2024 447,207 691,277 3,746,313 4,884,797
Charge for the year 86,896 187,443 397,511 671,850
Disposals - - (577,526) (577,526)
At 31 December 2025 534,103 878,720 3,566,298 4,979,121
Net book value
At 31 December 2024 422,445 473,983 1,572,361 2,468,789
At 31 December 2025 486,230 286,540 1,679,644 2,452,414
Note 12 - Intangible assets
Group Development costs Goodwill Customer Other Total
£
£
relationships
£
£
£
Cost
At 1 January 2024 34,861,523 1,230,594 1,130,851 1,594,661 38,817,629
Foreign exchange movement - 19,690 17,513 - 37,203
Additions 3,043,265 - - 339,260 3,382,525
At 31 December 2024 37,904,787 1,250,284 1,148,364 1,933,921 42,237,356
Foreign exchange movement - (88,310) (64,889) (109,277) (262,476)
Additions 3,864,766 - - 470,842 4,335,608
Disposals - - - (9,036) (9,036)
At 31 December 2025 41,769,553 1,161,974 1,083,475 2,286,450 46,301,452
Amortisation
At 1 January 2024 23,858,598 - 36,248 1,008,386 24,903,232
Foreign exchange movement - - - 1,268 1,268
Charge for the year 1,685,441 - 114,895 136,225 1,936,561
Impairment loss 4,088 - - - 4,088
At 31 December 2024 25,548,126 - 151,143 1,145,879 26,845,149
Foreign exchange movement - - (8,540) (64,749) (73,289)
Charge for the year 2,053,713 - 106,780 171,443 2,331,936
Disposals - - - (5,728) (5,728)
Impairment loss 225,174 - - - 225,174
At 31 December 2025 27,827,013 - 249,383 1,246,845 29,323,241
At 31 December 2024 12,356,661 1,250,284 997,221 788,042 15,392,208
At 31 December 2025 13,942,540 1,161,974 834,092 1,039,605 16,978,211
Company Development costs Other Total
£
£
£
Cost
At 1 January 2024 34,861,523 1,212,174 36,073,697
Transfer between classes - 5,398 5,398
Additions 3,043,265 321,820 3,365,085
Transfer to tangibles
At 31 December 2024 37,904,787 1,539,392 39,444,180
Additions 3,864,766 470,842 4,335,608
Adjustment
Disposals - (9,036) (9,036)
At 31 December 2025 41,769,553 2,001,198 43,770,751
Amortisation
At 1 January 2024 23,858,598 997,196 24,855,794
Foreign exchange movement
Charge for the year 1,685,441 110,015 1,795,456
Disposals
Impairment loss 4,088 - 4,088
At 31 December 2024 25,548,126 1,107,211 26,655,338
Charge for the year 2,053,713 123,764 2,177,477
Disposals - (5,728) (5,728)
Impairment loss 225,174 - 225,174
At 31 December 2025 27,827,013 1,225,247 29,052,261
At 31 December 2024 12,356,661 432,181 12,788,842
At 31 December 2025 13,942,540 775,951 14,718,490
Development costs can be broken down as assets under development (based on
original cost) £5,839,758 (2024: £3,282,211) and assets available for use
(based on original cost) £35,929,795 (2024: £34,622,576).
Other intangible assets comprise purchased software which have been made
bespoke to the business and are used within the business and software
licences. All amortisation and impairment charges (or reversals if any) are
included within 'Administrative Expenses'.
Capitalised development costs
The company assesses whether there are any impairment indicators for the
capitalised development costs. Where impairment indicators exists or the asset
is not yet amortised an impairment assessment has been performed in line with
IAS 36 to determine whether any impairment is required.
Assets of £225,174 have been impaired in the year as a result of this
assessment - all other assets either show no indicators of impairment or have
significant headroom based on the impairment assessments undertaken.
Goodwill
The goodwill associated with the acquisition of Phillips Aerospace has been
tested for impairment in accordance with IAS 36. The goodwill is allocated to
the cash generating unit, which in this case is the Phillips Mahcine &
Welding Company Inc entity.
Accordingly a value in use calculation has been prepared by the company to
determine whether an impairment is required. The key inputs into this forecast
are:
− Discount rate
− Revenue growth rate
Sensitivity analysis has been performed which demonstrates the discount rate
would need to increase by over 50% for there to be no headroom and the
forecasted revenue would need to fall by 10% for there to be no headroom.
Note 13 - Deferred tax
Group Share-based payments Accelerated Tax Other Total
£
capital
losses
£
£
allowances
£
£
At 1 January 2024 490,730 (2,101,163) 253,337 (304,357) (1,661,453)
Credited/(charged) to statement of comprehensive income 63,848 (978,982) 421,289 26,214 (467,631)
Credited/(charged) to equity 5,820 - - - 5,820
At 31 December 2024 560,398 (3,080,145) 674,626 (278,143) (2,123,264)
Credited/(charged) to statement of comprehensive income 65,470 (359,547) (496,609) 224,662 (566,024)
Credited/(charged) to equity 220,764 - - - 220764
At 31 December 2025 846,632 (3,439,692) 178,017 (53,481) (2,468,524)
Company
At 1 January 2024 490,730 (2,108,449) 215,538 - (1,402,181)
Credited/(charged) to statement of comprehensive income 63,848 (978,982) 421,289 - (493,845)
Credited/(charged) to equity 5,820 - - - 5,820
At 31 December 2024 560,398 (3,087,431) 636,827 - (1,890,206)
Credited/(charged) to statement of comprehensive income 65,470 (352,261) (636,827) 163,287 (760,331)
Credited/(charged) to equity 220,764 - - - 220,764
At 31 December 2025 846,632 (3,439,692) - 163,287 (2,429,773)
Note 14 - Investments
Company 31 December 31 December
2025
2024
£ £
Investment in subsidiary companies
Shares at cost 19,705 19,705
Capital contribution 1,361,656 1,361,656
Equity-settled share-based payment 1,001,030 565,951
Total investment in subsidiary companies 2,382,391 1,947,312
The Group has closed the Research and Development facility located in India.
The investment in the subsidiary company has not been impaired during 2025.
This will be impaired in 2026 upon formal dissolution. The investment carried
in the accounts is £12,994. Investments are tested annually for impairment by
reviewing the future discounted cash flows of subsidiary companies.
Subsidiary undertakings included in these accounts, which are all wholly
owned, at 31 December 2025 are:
Name Place of incorporation Class of share Percentage held Nature of business
By Company:
Concurrent Tech Bangalore, Ordinary 99.999 per cent Non-trading
India Private Ltd India Company
Concurrent California, Ordinary 100 per cent Sale & service of Company products & R&D services for the Company
Technologies Inc. USA
By Concurrent Technologies Inc:
Omnibyte Corporation Illinois, USA Ordinary 100 per cent Dormant
Phillips Aerospace California, USA Ordinary 100 per cent Developer & manufacturer of industrial products and associated services
Note 15 - Inventories
Group Company Group Company
31 Dec 2025
31 Dec 2025
31 Dec 2024
31 Dec 2024
£
£
£
£
Raw materials 7,866,377 7,089,431 6,948,808 6,168,144
Work in progress 3,202,458 3,202,458 3,640,455 3,640,455
Finished goods 600,758 600,758 286,353 286,353
11,669,593 10,892,647 10,875,616 10,094,952
During 2025 the provision for obsolete and slow-moving inventories has been
increased by £121,964 (2024: increased by £74,719). In accordance with IAS2,
inventories are measured at the lower of cost and net realisable value.
The inventory balance movement includes a write-off provision which has
decreased by £82,636 in the period. This comprises obsolete inventory
following an in-depth analysis of the Group's inventory.
In 2025, a total of £18.8m (2024: £18.4m) of purchase of inventories was
included in the Consolidated Statement of Comprehensive Income as an expense.
Note 16 - Trade and other receivables
Group Company Group Company
2025
2025
2024
2024
£
£
£
£
Current
Trade receivables 9,658,509 5,216,633 6,196,812 2,183,749
Prepayments and accrued income 2,456,149 742,978 1,550,741 1,359,050
Other debtors - - 356,559 356,559
Amounts due from subsidiary undertakings - 8,014,917 - 5,080,739
12,114,658 13,974,528 8,104,112 8,980,097
Group Company Group Company
2025
2025
2024
2024
£
£
£
£
Non-current
Loan to subsidiary - 3,223,456 - 3,301,753
- 3,223,456 - 3,301,753
The formal loan agreement for the loan to subsidiary was signed in 2024 and
the loan has a repayment date of September 2028. Therefore, the loan balance
has been reclassified to non-current receivables.
The group applies the IFRS 9 simplified approach to measuring expected credit
losses which uses a lifetime expected loss allowance for all trade
receivables. Trade receivables have been grouped based on shared credit risk
characteristics. The expected loss rates are based on historic performance, as
well as current macroeconomic conditions and experience. The Company has
assessed the recoverability of inter-company balances by comparing to future
discounted cash flows, and deem no issues in terms of credit losses, with all
amounts being repayable on demand. There have been no previous write-offs of
inter-company balances and there are sufficient cash and other current assets
to cover the amount.
31 December 2025 Current More than More than More than Total
30 days
60 days
90 days
past due
past due
past due
Expected loss rate - - - 0.001%
Gross carrying amount 7,716,401 1,926,825 9,036 6,247 9,658,509
Lifetime expected credit loss - - - 210 210
As a Group we don't have a significant amount of bad debt and, historically,
bad debts have been very close to nil due to the recurring nature of orders;
our customers pay what is owed, so it is not necessary for us to provide for
any balances as bad debt.
Group Group
2025
2024
£ £
At 1 January 210 210 210 210
Charged/(credited) to statement of comprehensive income 26,920 26,920 - -
At 31 December 27,130 27,130 210 210
Group Company Group Company
2025
2025
2024
2024
£
£
£
£
More than 30 days 1,926,825 - 552,964 398,653
More than 60 days 9,036 - 741,415 531,201
More than 90 days 6,247 6,247 377,088 257,731
1,942,108 6,247 1,671,467 1,187,585
Note 17 - Trade and other payables
Current Group Company Group Company
2025
2024
£ 2025 £ 2024
£ £
Trade payables 4,465,620 3,550,890 5,052,348 4,469,106
Contract liabilities 2,311,355 2,311,355 588,213 588,213
Other payables 76,242 58,630 117,589 102,878
Right of use lease liability 439,671 303,360 310,182 287,746
Other taxes and social security costs 657,382 653,809 277,102 267,953
Accruals 2,494,953 1,855,252 2,595,334 1,295,952
10,445,223 8,733,296 8,940,768 7,011,848
Within Contract Liabilities is an amount of £653,146 relating to R&D Tax
deferred income.
Non-current Group Company Group Company
2025
2025
2024
2024
£
£
£
£
Right of use liability 1,726,030 167,462 446,477 428,913
1,726,030 167,462 446,477 428,913
Contract liabilities have been disaggregated from other payables in the
current and prior years to provide more detailed information to the reader of
the accounts as to the nature of other payables.
Contract liabilities (Group and Company) RDEC Project A Warranty End of life Total
B/fwd as 1 January 2025 0 0 60,882 527,331 588,213
Charged/(credited) to profit or loss 0 - - - 0
Addition 653,146 1,306,959 - - 1,960,105
Release 0 0 (27,931) (209,032) (236,963)
Closing at 31 December 2025 653,146 1,306,959 32,951 318,299 2,311,355
Note 18 - Financial instruments
Financial
assets measured at amortised cost
£
Group
2024 Non-current: -
2024 Current:
Trade and other receivables 6,196,812
Cash and cash equivalents 13,706,703
Total for category 19,903,515
2025 Non-current:
2025 Current:
Trade and other receivables 9,658,509
Cash and cash equivalents 14,373,596
Total for category 24,032,105
Financial liabilities measured at amortised cost
£
Group
2024 Current:
Trade and other payables 8,075,453
2025 Current:
Trade and other payables 7,476,486
Included in the above is trade payables, other payables, accruals and lease
liabilities. All non-current liabilities as displayed in Note 17 relate to
lease liabilities which are financial liabilities measured at amortised cost.
Note 19 - Provisions
Group and Company Dilapidation Product
£
warranty
£
Carrying amount at 1 January 2025 308,340 36,512
Charged to profit or loss
Increase in provisions 11,896 34,238
Amount utilised - -
Carrying amount at 31 December 2025 320,236 70,750
Provisions have been analysed between current and non-current as follows:
Current 35,375
Non-current 355,611
Warranties are provided for based on past experience and on the basis of
management's best estimate of the Group's liability under 24-month warranties
granted on its hardware products.
Dilapidations are provided for on the basis of management's best estimate for
both the Colchester and Theale offices. This is recognised over the life of
each lease.
Note 20 - Leases and commitments
The Group leases properties for its operations in the UK and US and the
information is presented below, all leases relate to property.
Changes in liabilities arising from financing activities Group Company Group Company
2025
2025
2024
2024
£
£
£
£
Opening balance 756,659 716,659 989,935 946,079
Additions 1,773,944 - - -
Modifications and amendment - - - -
Payments (476,907) (283,553) (326,514) (286,410)
Interest 112,005 37,716 86,166 56,990
Foreign exchange (13,094) - 7,072 -
Closing balance 2,165,701 470,822 756,659 716,659
Right of use assets
Group Company
2025
2025
£
£
Opening balance 484,033 473,983
Additions 1,773,944 -
Depreciation (302,566) (187,443)
Foreign exchange - -
Closing balance 1,955,411 286,540
The right of use in relation to leasehold property is disclosed as PPE (Note
11).
Leases are made up of three properties with the terms as follows: UK office
(Colchester) has no remaining break clauses; UK office (Theale) has a break
clause of 1st April 2028; ; US office has a break clause on 31 January 2030.
Note Group Company Group Company
2025
2025
2024
2024
£
£
£
£
Within one year (503,558) (285,962) (365,566) (325,462)
Within 2-6 years (1,259,768) (209,371) (453,424) (453,424)
After 6 years (755,755) - - -
Add unearned interest 353,379 24,511 62,331 62,227
(2,165,702) (470,822) (756,659) (716,659)
Non-current 17 (1,726,030) (167,462) (446,477) (428,913)
Current 17 (439,671) (303,360) (310,182) (287,746)
(2,165,702) (470,822) (756,659) (716,659)
At 31 December 2024 the Group was committed to a short-term lease for the
Phillips Aerospace office lease which ended in 2025. The Group has elected not
to recognise a lease liability for short-term leases or for leases of
low-value assets. Payments made on these leases are expensed on a straightline
basis and the value of these expenses in the year was £5,964. Amounts
recognised in the consolidated statement of comprehensive income.
Group Group
2025
2024
£
£
Short-term and low-value lease expense 5,964 198,735
Depreciation charge 200,082 204,374
Interest expense 38,674 62,331
Amounts recognised in the consolidated statement of cash flows.
Group Group
2025
2024
£
£
Payment of lease liabilities 476,907 326,514
Capital commitments
At the end of the year there were no capital expenditure commitments £nil
(2024: £nil).
Note 21 - Share capital
31 Dec 2025 31 Dec 2024
£
£
Allotted, issued and fully paid share capital:
Ordinary Shares (86,989,048 of 1p each) 869,890 861,692
At 31 December 2025 the Company held nil Ordinary Shares (2024: 381,522) with
an aggregate nominal value of £nil (2024: £3,815) in treasury. As a result
of options exercised in the year, proceeds of £503,752 were received in
relation to these options.
Treasury shares
Balance as at 1 January 2025 381,522
Shares sold (381,522)
Balance as at 31 December 2025 -
Treasury share movement in year due to exercise of share options of £381,522
which were taken out of treasury shares and moved to ordinary shares.
Note 22 - Pension scheme
The Company operates a Group Personal Pension Scheme, which all permanent
employees may join. The Scheme, which is a defined contribution scheme, is
independent of the Company's finances. The Company's contributions are based
on between 5.5% and 10% of members' gross salaries, dependent upon the length
of service of the individual. The Company has also chosen Royal London as its
workplace pension scheme to meet its employer duties under the Auto Enrolment
rules. Contributions to the Royal London scheme are at the minimum rates. The
total charge to administrative expenses in the statement of comprehensive
income is disclosed in Note 10 Staff Costs. Pension contributions payable to
the Schemes at the end of the year were £95,106 (2024: £80,020).
Note 23 - Financial risk management
The Group is exposed to various risks in relation to financial instruments.
The Group's financial assets and liabilities by category are summarised in
Note 18. The main types of risks are market risk, credit risk and liquidity
risk. The Group's policy in respect of financial risk management is referred
to in the report on Corporate Governance.
The Group does not actively engage in the trading or holding of financial
assets for speculative purposes. The most significant financial risks to which
the Group is exposed are described below.
Market risk analysis
The Group is exposed to market risk through its use of financial instruments
and specifically to currency risk which results from its operating activities.
Foreign currency sensitivity
A number of transactions are conducted by companies in the Group in currencies
other than their functional currency which give rise to monetary assets and
liabilities denominated in other currencies. The Group's exposure to foreign
currency exchange risk is mitigated to a large extent by natural hedging, as
assets in currency are matched by liabilities in the same currency. The value
of monetary assets and liabilities of the Group and Company not held in
functional currencies at the statement of financial position date were as
follows:
Net foreign currency monetary assets/(liabilities) 2025 2024
US dollar
US dollar
£
£
Group 4,000,165 3,050,393
2025 2024
US dollar
US dollar
£
£
If sterling had strengthened by 5% against US dollar:
Impact on net Group result and equity for the year (190,484) (145,257)
If sterling had weakened by 5% against US dollar:
Impact on net Group result and equity for the year 210,535 160,547
Exposures to foreign exchange rates vary during the year depending on the
volume of overseas transactions. Nonetheless, the analysis above is considered
to be representative of the exposure to currency risk.
Credit risk analysis
Credit risk is the risk that a counterparty fails to discharge an obligation
to the Group. The Group is exposed to this risk via cash and cash equivalents
and outstanding receivables.
The group applies the IFRS 9 simplified approach to measuring expected credit
losses which uses a lifetime expected loss allowance for all trade
receivables.
To measure the expected credit losses, trade receivables and contract assets
have been grouped based on shared credit risk characteristics and the number
of days past due.
On that basis, the loss allowance as at 31 December 2025 and 31 December 2024
was determined as follows:
Group
31 December 2025 Current More than More than More than Total
30 days
60 days
90 days
past due
past due
past due
Trade receivables 7,716,401 1,926,825 9,036 6,247 9,658,509
Expected loss rate 0.001%
Gross carrying amount - - - - -
31 December 2024 Current More than More than More than Total
30 days
60 days
90 days
past due
past due
past due
Trade receivables 4,525,345 552,964 741,415 377,088 6,196,812
Expected loss rate - - - 0.01% -
Gross carrying amount - - - 210 210
The Group loss allowances for trade receivables as at 31 December reconcile to
the opening loss allowances as follows:
2025 2024
£
£
Opening loss allowance at 1 January 210 210
Loss allowance recognised during the year - -
Closing loss allowance at 31 December 210 210
The credit risk for cash and cash equivalents and fixed-term cash deposits is
considered negligible since the counterparties are reputable banks with
high-quality external credit ratings.
Liquidity risk analysis
2025 Current More than More than More than Total
30 days
60 days
90 days
past due
past due
past due
Trade payables 4,261,716 115,397 53,597 34,911 4,465,620
Accruals 1,892,542 - - - 1,892,542
2024 Current More than More than More than Total
30 days
60 days
90 days
past due
past due
past due
Trade payables 3,083,629 799,658 863,568 305,493 5,052,348
Accruals 2,595,334 2,595,334
Liquidity risk is that the Group might be unable to meet its obligations. The
Group manages its liquidity needs by monitoring forecast cash inflows and
outflows due in day-to-day business. Liquidity needs are monitored in various
time bands, on a week-to-week basis and by monthly forecasting.
The Group's objective is to maintain cash to meet its liquidity requirements
for the foreseeable future. This objective was met for the reporting periods.
Funding for long-term liquidity needs is assessed by the Board on a regular
basis.
The Group considers expected cash flows from financial assets in assessing and
managing liquidity risk, in particular its cash resources and trade
receivables. The Group's existing cash resources and trade receivables (see
Note 16) exceed the current cash outflow requirements. Cash flows from trade
and other receivables are all contractually due within three months.
Note 24 - Capital management
The Group's objectives when managing capital are:
(i) to ensure the Group's ability to continue as a going
concern;
(ii) to provide an adequate return to shareholders; and
(iii) to ensure the optimal cost of capital to fund the
Group's strategy by pricing products and services commensurately with the
level of risk.
The Group monitors capital on the basis of the carrying amount of equity less
cash and cash equivalents as presented on the face of the Consolidated
Statement of Financial Position.
The Group manages the capital structure and makes adjustments to it in the
light of changes in economic conditions and the risk characteristics of the
underlying assets. In order to maintain or adjust the capital structure, the
Group may adjust the amount of dividends paid to shareholders, return capital
to shareholders, purchase its own shares to hold in treasury, issue new
shares, or sell assets. There were no changes in the Group's approach to
capital management during the year. Neither the Company nor any of its
subsidiaries are subject to externally imposed capital requirements.
Capital for the reporting periods under review is summarised as follows:
Group Group
2025
2024
£
£
Total equity 44,772,257 38,925,008
Cash and cash equivalents 14,373,596 13,706,703
Capital 30,398,661 25,218,304
Total Equity & overall financing 44,772,257 38,925,008
Capital to overall financing ratio 0.68 0.65
Note 25 - Related party transactions
Dividends paid to Directors during the year amounted to:
Group Group
2025
2024
£
£
Dividends: 3,922 280
Transactions with Key Management Personnel during the period:
Key Management Personnel are the Company's Board. Key Management Personnel
remuneration includes the following expenses:
Group Group
2025
2024
£
£
Short-term employee benefits 1,295,796 1,260,912
Post-employment benefits 19,000 16,299
Share-based payment (IFRS 2) 437,336 400,553
1,752,132 1,677,764
Note 26 - Share-based payment
At the beginning of 2021 the Company operated an Enterprise Management
Incentive Share Option Scheme. During 2021, a Long Term Incentive Plan (LTIP)
was introduced.
The new Scheme provides for a grant price equal to the nominal value of the
Company's shares on the date of grant. Options cannot be vested until three
years after grant date and vesting is conditional upon the Group achieving a
compound percentage growth of the Group average basic earnings per Ordinary
Share, for the complete years commencing 1 January of the year of grant and
ending with the year most immediately prior to the vesting of the option. The
latest date for exercising options is 10 years after grant date and vesting of
options is subject to continued employment with the Group.
2025 2025 2024 2024
Options
Weighted
Options
Weighted
No
average
No
average
price
price
pence
pence
Outstanding at 1 January 5,106,393 10.86 4,544,202 16.15
Granted 543,042 1.00 832,816 1.00
Exercised (1,201,334) 42.50 (150,000) 39.00
Forfeited/lapsed (117,805) 43.66 (130,625) 1.00
Outstanding at 4,330,296 1.00 5,096,393 10.86
31 December
Weighted average share price at date of exercise 1,201,334 42.50 166.80 -
Exercisable at Nil - Nil -
31 December 2025
Options outstanding at 31 December 2025 had an exercise price of 1.0 pence and
a weighted average remaining contractual life of 1.26 years (2024: 2.14
years).
The inputs to the Black-Scholes model for options granted over the period were
as follows:
Grant Date 3 Jan 2025 4 Feb 2025 15 Apr 2025 30 Sep 2025 18 Nov 2025
Share price at grant date £1.37 £1.79 £1.59 £2.23 £2.64
Exercise price £0.01 £0.01 £0.01 £0.01 £0.01
Dividend yield 1.40% 1.40% 1.40% 1.40% 1.40%
Risk-free interest rate 4.21% 4.01% 3.99% 4.00% 3.74%
Volatility 36.02% 35.49% 36.17% 36.21% 35.27%
Note 27 - Ultimate controlling party
The Directors have assessed that there is no ultimate controlling party.
Note 28 - Post Balance Sheet Events
On 6 March 2026, Concurrent entered into a new 10 year lease for a new
building with a break clause after 7 years
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