TIDMCNC
RNS Number : 0558V
Concurrent Technologies PLC
12 April 2021
This announcement contains inside information
12 April 2021
Concurrent Technologies Plc
Results for the year ended 31 December 2020
Concurrent Technologies Plc (AIM: CNC), a world leading
specialist in the design and manufacture of high-end embedded
computer boards for critical applications , announces r esults for
the year to 31 December 2020.
Financial Highlights
-- Revenue for the year increased 9% to GBP21.1m (2019: GBP19.4m)
-- Gross profit increased 12% to GBP11.4m (2019: GBP10.2m)
-- Gross margin increased to 53.7% (2019: 52.7%)
-- EBITDA steady at GBP5.0m (2019: GBP5.1m)
-- Adjusted Profit before tax of GBP2.8m (2019: 3.1m after
adjusting for other, non-recurring income of GBP1.0m)
-- Profit before Tax of GBP2.8m (2019: GBP4.1m - including
other, non-recurring income of GBP1.0m)
-- Profit after Tax of GBP2.7m (2019: GBP4.0m)
-- Adjusted EPS for 2020 was 3.75 (2019: 4.38 after removing the
non-recurring income of GBP1m and the associated tax impact)
-- Dividend increased to 2.55 pence per share for the year (2019: 2.50 pence)
-- Cash in the business increased to GBP11.8m (2019: GBP10.5m)
Operational Highlights
-- Production and the design and development functions have
remained open and, for the most part, fully operational throughout
the COVID-19 pandemic. The Group has not participated in any
government aid scheme such as the Coronavirus Business Interruption
Loan Scheme (CBILS) or VAT payment deferral and no employees have
been furloughed during the pandemic.
-- Exports remain strong and contribute 91% of Group revenue
-- Cessation of R&D facility in India almost completed and
functions transferred to UK. Costs of cessation were GBP0.7m which
have been recognised in the 2020 accounts.
-- Spending on R&D increased to GBP3.89m in 2020 (2019:
GBP3.51m), of which GBP1.88m was capitalised (2019: GBP2.26m).
The Group's previous Chairman, Michael Collins, retired from the
Board in September 2020 after 31 years' service to the Group.
Mike's knowledge and experience helped to guide the Group from
start-up to PLC. Mark Cubitt was appointed as the Group's new
Chairman at the AGM, having previously joined the Board as a
Non-Executive Director in March 2020. Mark is a Chartered
Accountant and is a member of the Association of Corporate
Treasurers. He has extensive multinational experience gained over
the last 33 years, including 23 years in the listed PLC
environment.
Mark Cubitt, Chairman of Concurrent Technologies Plc,
commented:
" During 2020, the Group introduced several new high-performance
embedded computer boards and accessory modules. These included
products based on the 9th generation embedded Intel(R) Xeon(R)
processor for use in AMC, CompactPCI(R) and OpenVPX(TM)
architectures.
As part of the Group's long-term continuous improvement
strategy, and to mitigate an identified risk to the business during
2020, a further investment of GBP155,000 was made within
manufacturing to introduce a new circuit board processing line.
The Board is taking a cautious approach to revenue growth in the
coming year because of the continuing uncertainty caused by the
COVID-19 outbreak and the delays seen to some programmes
potentially moving revenue from 2021 to 2022. However, the Group's
proven ability to adapt to the challenges brought about by the
pandemic, the overhead savings from closure of the Indian design
office, its ability to provide a well-supported, UK designed and
manufactured product, and the current record order book, which has
seen a substantial increase during the first quarter of 2021, gives
the Board confidence in the Group's continuing solid
performance."
Annual General Meeting
Due to the COVID-19 crisis and social distancing requirements
the date and arrangements for the AGM will be announced
separately.
Enquiries:
Concurrent Technologies Plc
Jane Annear, Managing Director/CEO +44 (0)1206 752626
Newgate (Financial PR)
Bob Huxford +44 (0)20 7653 9848
Isabelle Smurfit +44 (0)20 7653 3411
Cenkos Securities Plc (NOMAD)
Neil McDonald +44 (0)131 220 9771
Peter Lynch +44 (0)131 220 9772
Extracts from the Strategic Report
Review of Operations
The Group generated record Revenue for the year of GBP21.14m
(2019: GBP19.38m). This converted into Gross Profit of GBP11.36m
(2020: GBP10.21m) while the gross margin improved to 53.7% (2019:
52.7%).
Profit before tax was GBP2.85m (2019: GBP4.06m: 2019 included
other, non-recurring income of GBP1.0m). Earnings per share was
3.75 pence (2019: 5.51 pence) while earnings per share on normal
activities, adjusted to remove the impact of Other Income, was 3.75
pence (2019: 4.38 pence). EBITDA (measured as Operating Profit plus
Depreciation and Amortisation) for the Group in 2020 was GBP4.99m
(2019: GBP5.07m).
The Group continued its long-term commitment to R&D by
spending GBP3.89m in 2020 (2019: GBP3.51m), of which GBP1.88m was
capitalised (2019: GBP2.26m) and GBP0.69m related to closure costs
of the Indian R&D centre. In light of the slowdown in the sales
of some projects, an unusually large impairment charge of
GBP888,579 (2019: GBP483,630) was included during the year to
reflect relatively pessimistic cash generating expectations of
itemised projects.
The Group continues to have no borrowings and again paid
increased dividends during the year. Its cash balances plus short
to medium term cash deposits at the year-end were GBP11.8m (2019:
GBP10.5m).
Operational Highlights
During 2020, the Group introduced several new high-performance
embedded computer boards and accessory modules. These included
products based on the 9th generation embedded Intel(R) Xeon(R)
processor for use in AMC, CompactPCI(R) and OpenVPX(TM)
architectures. These products were introduced as part of the
Group's policy to provide existing customers with products that can
be used as upgrade paths from previous generations where additional
processing power or enhanced features are required. New customers
benefit from choosing products based on the latest technologies. As
required by many applications, these new products offer support for
enhanced security features and most are suitable for both
commercial and harsh environments. In addition, support for
additional partner software and hardware products was announced to
broaden the Group's product range. The Group's AI technology
product is currently being developed for use on a prototype
third-party end product that may come to market this year.
As part of the Group's long-term continuous improvement
strategy, and to mitigate an identified risk to the business during
2020, a further investment of GBP155,000 was made within
manufacturing to introduce a new circuit board processing line.
This line will significantly help to reduce lead times for
particular product variants.
Outlook
The new financial year of 2021 started with a healthy order book
which has seen a significant increase during the first quarter of
the year. The Group's telecoms business is now recovering and
growing after last year's second half slow down, and several
customers in the defence and telecoms sectors have placed orders
for previous generation products that have been offered under
extended manufacturing to protect and extend the lifecycle of their
projects. These orders are due for delivery in 2021 and beyond.
Several of the Group's customers have made the decision to upgrade
to its newer generation products.
The Group plans to maintain its policy of investing in R&D
to expand its current range of advanced technology products with a
particular focus on the OpenVPX(TM) bus architecture, featuring the
latest Intel processors suitable for the long lifecycle embedded
markets in which the Group operates. Support for third party
software and hardware products will be continued in order to
enhance the Group's capability to provide development systems.
These ready-to-use development systems enable customers to reduce
their product development times by focussing on their own areas of
expertise to develop specialised applications.
The Board sees opportunities to grow the business organically by
broadening the range of both hardware and software products within
its existing core markets of defence and telecommunications.
Savings made from ceasing operations in the Indian office will
largely be reinvested to increase and broaden the skills and
technical expertise within the UK team. In addition, the Board
continues to look to recruit key individuals and skill for both
succession and organic growth as well as for worldwide acquisition
opportunities which would assist the Group in introducing new
skills and technologies complementary and adjacent to its current
product ranges. This is with the aim of increasing the Group's
potential share of the total available market.
Dividend
The Board has declared a second interim dividend of 1.45 pence
per share (2019: 1.45 pence) which, when added to the first interim
dividend of 1.10 pence per share (2019: 1.05 pence), will make a
total of 2.55 pence per share for the year (2019: 2.50 pence). This
is an increase of 2.0% on dividends paid for 2019. The total cost
of this second interim dividend amounts to GBP1,063,771. As in
previous years, the Directors do not intend to recommend a final
dividend.
Annual General Meeting
Due to the COVID-19 crisis and social distancing requirements
the date and arrangements for the AGM will be announced
separately.
All trademarks, registered trademarks and trade names used in
this announcement are the property of their respective owners.
Consolidated Statement of Comprehensive Income
Year to Year to
31 December 31 December
2020 2019
CONTINUING OPERATIONS GBP GBP
Revenue 21,141,294 19,384,724
Cost of sales 9,780,750 9,174,588
------------ ------------
Gross profit 11,360,544 10,210,136
Operating expenses 8,444,962 7,204,073
============ ============
Group operating profit 2,915,582 3,006,063
Finance costs (83,985) (41,808)
Finance income 16,480 96,601
Other Income - 1,000,000
------------ ------------
Profit before tax 2,848,077 4,060,856
Tax 98,167 52,857
------------ ------------
Profit for the year 2,749,910 4,007,999
============ ============
Other Comprehensive Income
Items that will be reclassified subsequently
to profit or loss:
Exchange differences on translating
foreign operations (283,681) (186,972)
Tax relating to components of other - -
comprehensive income
Other Comprehensive Income for the
year, net of tax (283,681) (186,972)
Total Comprehensive Income for the
year 2,466,229 3,821,026
============ ============
Profit for the period attributable
to:
------------ ------------
Equity holders of the parent 2,749,910 4,007,999
------------ ------------
Total Comprehensive Income attributable
to:
Equity holders of the parent 2,466,229 3,821,026
------------ ------------
Earnings per share
Basic earnings per share 3.75p 5.51p
Diluted earnings per share 3.74p 5.47p
Consolidated Balance Sheet
As at As at
31 December 31 December
2020 2019
(as restated)
GBP GBP
ASSETS
Non-current assets
Property, plant and equipment 1,734,965 1,638,429
Intangible assets 7,205,581 7,991,119
Deferred tax assets 134,775 142,894
9,075,321 9,772,442
Current assets
Inventories 5,533,574 5,097,907
Trade and other receivables 2,356,157 2,703,960
Current tax assets 305,113 274,221
Other financial assets - -
Cash and cash equivalents 11,765,974 10,487,902
----------- -------------
19,960,818 18,563,990
Total assets 29,036,139 28,336,432
----------- -------------
LIABILITIES
Non-current liabilities
Deferred tax liabilities 1,571,830 1,453,331
Trade and other payables 704,800 838,001
Long term provisions 16,162 16,731
----------- -------------
2,292,792 2,308,063
Current liabilities
Trade and other payables 4,143,522 4,126,823
Short term provisions 16,354 16,832
Current Tax Liabilities 26,504 -
4,186,380 4,142,655
Total liabilities 6,479,172 6,451,718
----------- -------------
Net assets 22,556,967 21,884,714
=========== =============
EQUITY
Capital and reserves
Share capital 739,000 739,000
Share premium account 3,699,105 3,699,105
Capital redemption reserve 256,976 256,976
Cumulative translation reserve (121,293) 162,388
Profit and loss account 17,983,179 17,027,245
----------- -------------
Equity attributable to equity holders
of the parent 22,556,967 21,884,714
Total equity 22,556,967 21,884,714
=========== =============
Consolidated Cash Flow Statement
Year to Year to
31 December 31 December
2020 2019
GBP GBP
Cash flows from operating activities
Profit before tax for the period 2,848,077 4,060,856
Adjustments for:
Finance income (16,480) (96,601)
Finance costs 83,985 41,808
Depreciation 282,563 315,687
Amortisation 1,793,628 1,788,003
Impairment loss 888,579 483,630
Share-based payment 6,991 82,421
Exchange differences (300,569) (205,790)
Decrease/(increase) in inventories (435,667) (1,001,331)
(Increase)/decrease in trade and
other receivables 347,803 648,621
Increase/(decrease) in trade and
other payables (9,354) 1,232,237
----------- -----------
Cash generated from operations 5,489,557 7,349,541
Tax received 40,536 (21,173)
----------- -----------
Net cash generated from operating
activities 5,530,092 7,328,368
----------- -----------
Cash flows from investing activities
Interest received 16,480 96,601
Purchases of property, plant and equipment
(PPE) (385,964) (476,376)
Capitalisation of development costs
and purchases of intangible assets (1,896,659) (2,272,054)
----------- -----------
Net cash used in investing activities (2,266,143) (2,651,829)
Cash flows from financing activities
Equity dividends paid (1,864,968) (1,745,345)
Repayment of leasing liabilities (108,195) (108,426)
Interest paid (83,985) (41,808)
Sale of treasury shares 47,529 4,950
----------- -----------
Net cash used in financing activities (2,009,619) (1,890,629)
Effects of exchange rate changes on
cash and cash equivalents 23,742 22,640
Net increase/(decrease) in cash 1,278,072 2,808,550
Cash at beginning of period 10,487,902 7,679,352
----------- -----------
Cash at the end of the period 11,765,974 10,487,902
=========== ===========
Consolidated Statement of Changes in Equity
Capital Cumulative Profit
Share Share redemption translation and loss Total
capital premium reserve reserve account Equity
GBP GBP GBP GBP GBP GBP
Balance at 1
January
2019 739,000 3,699,105 256,976 349,360 14,670,553 19,714,994
Profit for the
period - - - - 4,007,999 4,007,999
Exchange
differences
on translating
foreign
operations - - - (186,972) - (186,972)
---------------- ---------------- ---------------- ---------------- ------------------ -----------
Total
comprehensive
income for the
period - - - (186,972) 4,007,999 3,821,027
Transactions
with
owners:
Share-based
payment - - - - 82,421 82,421
Deferred tax on
share
based payment - - - - 6,667 6,667
Dividends paid - - - - (1,745,345) (1,745,345)
Purchase of
treasury
shares - - - - 4,950 4,950
---------------- ---------------- ---------------- ---------------- ------------------ -----------
Balance at 31
December
2019 739,000 3,699,105 256,976 162,388 17,027,245 21,884,714
---------------- ---------------- ---------------- ---------------- ------------------ -----------
Profit for the
period - - - - 2,749,910 2,749,910
Exchange
differences
on translating
foreign
operations - - - (283,681) - (283,681)
---------------- ---------------- ---------------- ---------------- ------------------ -----------
Total
comprehensive
income for the
period - - - (283,681) 2,749,910 2,466,229
Transactions
with
owners:
Share-based
payment - - - - 6,991 6,991
Deferred tax on
share
based payment - - - - 16,472 16,472
Dividends paid - - - - (1,864,968) (1,864,968)
Sale of
treasury
shares - - - - 47,529 47,529
---------------- ---------------- ---------------- ---------------- ------------------ -----------
Balance at 31
December
2020 739,000 3,699,105 256,976 (121,293) 17,983,179 22,556,967
================ ================ ================ ================ ================== ===========
NOTES
1. The Group financial statements consolidate those of the
Company and its subsidiaries (together referred to as the 'Group').
The financial information set out in these preliminary results has
been prepared in accordance with international accounting standards
in conformity with the requirements of the Companies Act 2006. The
accounting policies adopted in this results announcement have been
consistently applied to all the years presented. The restatement of
balance sheet items refers to lease liabilities which have been
reclassified from current to non-current liabilities. The
adjustment does not impact shareholder funds or profit previously
stated.
2. The financial information set out above does not constitute
the Group's statutory accounts for the years ended 31 December 2020
or 2019, but is derived from those accounts. Statutory accounts for
2019 have been delivered to the Registrar of Companies and those
for 2020 will be delivered following the Annual General Meeting.
The auditors have reported on those accounts; their reports were
(i) unqualified, (ii) did not contain statements under section
498(2) or (3) of the Companies Act 2006 in respect of 2019 or 2020
and (iii) did not draw attention to any matters by way of
emphasis.
3. The calculation of basic earnings per share is based on the
weighted average number of Ordinary Shares in issue during 2020 of
73,253,120 (2019: 72,724,271) after adjustment for treasury shares
on the profit after tax for 2020 of GBP 2,749,910 (2019:
GBP4,007,999). The calculation of diluted earnings per share
incorporates 311,651 Ordinary Shares (2019: 574,542) in respect of
performance related employee share options. The profit after tax is
the same as for basic earnings per share.
4. Due to the COVID-19 crisis and social distancing requirements
the date and arrangements for the AGM will be announced
separately.
Copies of the Annual Report will be sent to Shareholders and
will also be available from the Company's Registered Office: 4,
Gilberd Court, Newcomen Way, Colchester, Essex, CO4 9WN, UK, and on
the Company's website: www.gocct.com.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
FR EANLEFLPFEFA
(END) Dow Jones Newswires
April 12, 2021 02:00 ET (06:00 GMT)
Concurrent Technologies (LSE:CNC)
Historical Stock Chart
From Mar 2024 to Apr 2024
Concurrent Technologies (LSE:CNC)
Historical Stock Chart
From Apr 2023 to Apr 2024
