TIDMCNC
RNS Number : 3932N
Concurrent Technologies PLC
01 September 2011
1 September 2011
CONCURRENT TECHNOLOGIES PLC
Interim Results for the six months ended 30 June 2011
Concurrent Technologies Plc (the "Company"), a world leading
specialist in the design and manufacture of high-end embedded
computer products, for critical applications in the defence,
aerospace, transportation, telecommunications, scientific and
industrial markets, announces interim results for the six months to
30 June 2011.
Highlights:
-- Profit before tax GBP1,132,234 (H1 2010: GBP1,004,649)
-- Turnover GBP6,870,601 (H1 2010: GBP5,412,725)
-- Earnings per share for the period 1.45p (H1 2010: 1.08p)
-- Gross Margins 52%, in line with 2010 full year results
-- Net cash and cash equivalents GBP5.4m (H1 2010: GBP4.6m), no
borrowings
-- Interim dividend of 0.60 pence per share (0.55 pence) an
increase of 9%.
-- Strong Order book, 7% up in comparison to the same time in
2010
Michael Collins, Chairman, commented:
"As anticipated when reporting on our 2010 performance, trading
conditions in the defence sector remain good and we are also
pleased to note that the recovery in economic conditions within our
other markets continues with improved demand during this first half
of 2011.
We continue into the second half of the year with a strong order
book and, at this stage, expect our 2011 financial performance to
be satisfactory, taking into account our continuing increasing
investment in new product development."
31 August 2011
Enquiries:
Concurrent Technologies Plc Glen Fawcett, Managing Director +44
(0)1206 752 626
Hansard Communications (Financial PR)
Nicholas Nelson/Guy McDougall +44 (0)207 245 1100
Cenkos Securities plc (NOMAD) Ken Fleming +44 (0)131 220
9778
Beth McKiernan +44 (0)131 220 6939
CONCURRENT TECHNOLOGIES PLC
CHAIRMAN'S STATEMENT
Financial Summary
The first half of the year has started well, continuing the
strong close to the 2010 year. Turnover has increased by 27% over
the first half of 2011 to GBP6,870,601 (H1 2010: GBP5,412,725).
Gross Margins were slightly down at 51.7% (53.7%) due mainly to the
weakening of the US dollar during the period. The unaudited pre-tax
profit for the first half of this year has increased by 13% to
GBP1,132,234 (H1 2010: GBP1,004,649) with earnings per share rising
34% to 1.45 pence (H1 2010: 1.08p).
Our balance sheet position has also continued to improve with
cash (including cash deposits) up 18% to GBP5,361,053 from
GBP4,592,869 at the end of 2010, after another increased dividend
payment and further increases in R&D expenditure during the
first half of 2011. Net Assets have increased by 10% from
GBP11,381,669 at the end of 2010 to GBP12,496,210 at the end of
June 2011.
Dividend
The Board has declared an interim dividend of 0.60p per share
(0.55p) an increase of 9%. The total cost of this dividend will
amount to GBP428,853. The ex-dividend date for the interim dividend
is 7 September 2011, the record date is 9 September 2011 and the
payment date is 23 September 2011.
Review of Operations
Sales to our customers in the defence sector have increased
during the first half of 2011, but demand from our customers in the
telecommunication and other industries has also risen. Sales of our
CompactPCI(R) products have continued to grow as have sales of our
newer products using the VPX bus architecture. We are delighted to
report that exports have held up well during the period at 78% of
total sales revenue.
We continue to design and develop increasingly higher
performance products, now using the very latest quad-core or
dual-core 2nd generation Intel(R) Core(TM) processors launched by
Intel(R) in early January 2011. These processors offer enhanced
processing and graphic capabilities, resulting in virtually
doubling the graphics performance of all previous generations of
our boards and the versions we use are particularly aimed at the
defence and security markets.
Future Plans
Although we remain positive on potential value enhancing
acquisition opportunities, we are currently concentrating on
internal growth where we see clear opportunities to grow the
business into new market areas without needing to take high levels
of risk. We are continuing to expand our engineering capability
both here and abroad, and we have significantly stepped up our
policy of recruiting design engineers both in the UK and in our
development facility in Bangalore, India. These resources will
enable the Company to develop the more sophisticated ruggedized
versions of our products faster. As you would expect, we will also
continue to pursue new sales in our existing markets, where we have
potentially strong new business in the pipeline.
We strongly believe that a key factor in our future success lies
in continuing to expand our range of products, with a particular
focus on CompactPCI(R) , VME, VPX and AMC bus architectures, and
rapidly applying the latest technologies from Intel(R) . Our main
objective is to design more innovative products for complex, high
technology, low to medium volume and high margin applications,
along with producing versions targeted for use in harsh
environments, including military applications.
We have recently invested in our own CNC (Computer Numerical
Control) milling machine. This will enhance our mechanical and
thermal engineering design capability, especially in relation to
our environmentally superior products. This will be commissioned
during the second half of this year.
Outlook
As anticipated when reporting on our 2010 performance, trading
conditions in the defence sector remain good and we are also
pleased to note that the recovery in economic conditions within our
other markets continues with improved demand during this first half
of 2011.
We continue into the second half of the year with a strong order
book and, at this stage, expect our 2011 financial performance to
be satisfactory, taking into account our continuing increasing
investment in new product development.
Michael Collins
Chairman
31 August 2011
All companies and product names are trademarks of their
respective organisation.
CONDENSED CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
unaudited interim results to 30 June 2011
Six months Six months
ended ended Year ended
Note 30/06/11 30/06/10 31/12/10
GBP GBP GBP
CONTINUING OPERATIONS
Revenue 6,870,601 5,412,725 12,639,754
Cost of sales 3,316,497 2,504,806 6,211,615
---------- ---------- ----------
Gross profit 3,554,104 2,907,919 6,428,139
Net operating expenses 2,447,336 1,931,076 4,160,061
---------- ---------- ----------
Group operating profit 1,106,768 976,843 2,268,078
Finance income 25,466 27,806 55,444
---------- ---------- ----------
Profit before tax 1,132,234 1,004,649 2,323,522
Tax 96,609 230,527 293,361
---------- ---------- ----------
Profit for the period 1,035,625 774,122 2,030,161
========== ========== ==========
Other Comprehensive Income
Exchange differences on
translating foreign operations (71,964) 185,438 104,379
Tax relating to components
of other comprehensive income - - -
========== ========== ==========
Other Comprehensive Income
for the period, net of tax (71,964) 185,438 104,379
---------- ---------- ----------
Total Comprehensive Income
for the period 963,661 959,560 2,134,540
========== ========== ==========
Profit for the period attributable
to:
---------- ---------- ----------
Equity holders of the parent 1,035,625 774,122 2,030,161
---------- ---------- ----------
Total Comprehensive Income
attributable to:
---------- ---------- ----------
Equity holders of the parent 963,661 959,560 2,134,540
---------- ---------- ----------
Earnings per share
Basic earnings per share 4 1.45p 1.08p 2.84p
Diluted earnings per share 4 1.44p 1.07p 2.82p
CONDENSED CONSOLIDATED BALANCE SHEET
unaudited interim results to 30 June 2011
As at As at As at
30/06/11 30/06/10 31/12/10
ASSETS GBP GBP GBP
Non-current assets
Property, plant and equipment 512,547 579,968 562,792
Intangible assets 4,820,055 4,177,654 4,494,646
Deferred tax assets 272,074 219,305 202,112
Other financial assets - 1,000,000 -
---------- ---------- ----------
5,604,676 5,976,927 5,259,550
Current assets
Inventories 2,722,724 2,298,186 2,489,366
Trade and other receivables 2,473,891 2,316,927 3,136,335
Current tax assets 61,693 233,431 75,919
Other financial assets 2,000,000 1,000,000 2,000,000
Cash and cash equivalents 3,361,053 2,550,648 2,592,871
---------- ---------- ----------
10,619,361 8,399,192 10,294,491
Total assets 16,224,037 14,376,119 15,554,041
---------- ---------- ----------
LIABILITIES
Non-current liabilities
Deferred tax liabilities 1,293,205 1,219,564 1,264,554
Long term provisions 55,434 48,159 55,569
---------- ---------- ----------
1,348,639 1,267,723 1,320,123
Current liabilities
Trade and other payables 2,292,766 1,630,059 2,041,748
Short term provisions 63,956 44,754 58,460
Current tax liabilities 22,466 51,914 5,812
---------- ---------- ----------
2,379,188 1,726,727 2,106,020
Total liabilities 3,727,827 2,994,450 3,426,143
---------- ---------- ----------
Net assets 12,496,210 11,381,669 12,127,898
========== ========== ==========
EQUITY
Capital and reserves
Share capital 727,000 727,000 727,000
Share premium account 3,405,817 3,405,817 3,405,817
Capital redemption reserve 256,976 256,976 256,976
Cumulative translation reserve 158,324 311,347 230,288
Profit and loss account 7,948,093 6,680,529 7,507,817
---------- ---------- ----------
Equity attributable to equity
holders of the parent 12,496,210 11,381,669 12,127,898
Total equity 12,496,210 11,381,669 12,127,898
========== ========== ==========
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
unaudited interim results to 30 June 2011
Six months Six months
ended ended Year ended
30/06/11 30/06/10 31/12/10
GBP GBP GBP
Cash flows from operating
activities
Profit before tax for the
period 1,132,234 1,004,649 2,323,522
Adjustments for:
Finance income (25,466) (27,806) (55,444)
Depreciation 97,364 105,679 214,968
Amortisation 451,716 366,930 748,439
Impairment loss - 54,066 203,103
Loss on disposal of property,
plant and equipment 12,481 - 1,343
Share-based payment 9,044 11,016 22,895
Exchange differences (30,114) 46,869 30,140
(Increase) in inventories (233,358) (241,452) (432,632)
(Increase)/decrease in trade
and other receivables 662,444 27,950 (791,458)
Increase/(decrease) in trade
and other payables 256,379 (115,740) 317,065
---------- ----------- -----------
Cash generated from operations 2,332,724 1,232,161 2,581,941
Tax received/(paid) (44,312) 19,011 109,758
---------- ----------- -----------
Net cash generated from
operating activities 2,288,412 1,251,172 2,691,699
---------- ----------- -----------
Cash flows from investing
activities
Interest received 25,466 27,806 55,444
Purchases of property, plant
and equipment (65,090) (80,557) (174,846)
Purchases of intangible
assets (778,038) (1,040,692) (1,888,628)
---------- ----------- -----------
Net cash used in investing
activities (817,662) (1,093,443) (2,008,030)
---------- ----------- -----------
Cash flows from financing
activities
Equity dividends paid (678,528) (643,491) (1,036,733)
Purchase of treasury shares 11,407 - (27,376)
---------- ----------- -----------
Net cash used in financing
activities (667,121) (643,491) (1,064,109)
---------- ----------- -----------
Effects of exchange rate
changes on cash and cash
equivalents (35,447) 121,753 58,654
Net increase/(decrease)
in cash 768,182 (364,009) (321,786)
Cash at beginning of period 2,592,871 2,914,657 2,914,657
---------- ----------- -----------
Cash at the end of the period 3,361,053 2,550,648 2,592,871
========== =========== ===========
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
unaudited interim results to 30 June 2011
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 2010 727,000 3,405,817 256,976 125,909 6,526,027 11,041,729
Profit for the
period - - - - 774,122 774,122
Exchange
differences
on
translating
foreign
operations - - - 185,438 - 185,438
------- --------- ---------- ----------- --------- ----------
Total
recognised
comprehensive
income for
the period - - - 185,438 774,122 959,560
Share-based
payment - - - - 11,016 11,016
Deferred tax
on share
based
payment - - - - 12,855 12,855
Dividends paid - - - - (643,491) (643,491)
Purchase of
treasury
shares
------- --------- ---------- ----------- --------- ----------
Balance at 30
June 2010 727,000 3,405,817 256,976 311,347 6,680,529 11,381,669
======= ========= ========== =========== ========= ==========
Profit for the
period - - - - 1,256,039 1,256,039
Exchange
differences
on
translating
foreign
operations - - - (81,059) - (81,059)
------- --------- ---------- ----------- --------- ----------
Total
recognised
comprehensive
income for
the period - - - (81,059) 1,256,039 1,174,980
Share-based
payment - - - - 11,879 11,879
Deferred tax
on share
based
payment - - - - (20,012) (20,012)
Dividends paid - - - - (393,242) (393,242)
Purchase of
treasury
shares - - - - (27,376) (27,376)
------- --------- ---------- ----------- --------- ----------
Balance at 31
December
2010 727,000 3,405,817 256,976 230,288 7,507,817 12,127,898
======= ========= ========== =========== ========= ==========
Profit for the
period - - - - 1,035,625 1,035,625
Exchange
differences
on
translating
foreign
operations - - - (71,964) - (71,964)
------- --------- ---------- ----------- --------- ----------
Total
recognised
comprehensive
income for
the period - - - (71,964) 1,035,625 963,661
Share-based
payment - - - - 9,044 9,044
Deferred tax
on share
based
payment - - - - 62,728 62,728
Dividends paid - - - - (678,528) (678,528)
Purchase of
treasury
shares - - - - 11,407 11,407
------- --------- ---------- ----------- --------- ----------
Balance at 30
June 2011 727,000 3,405,817 256,976 158,324 7,948,093 12,496,210
======= ========= ========== =========== ========= ==========
NOTES TO THE INTERIM REPORT
1. General information
The principal activity of Concurrent Technologies
Plc and its subsidiaries ("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
Great Britain. Concurrent Technologies Plc's shares
are listed on the Alternative Investment Market of
the London Stock Exchange.
The Group's condensed consolidated interim financial
statements are presented in pounds sterling (GBP),
which is also the functional currency of the parent
company.
These condensed consolidated interim financial statements,
which are unaudited, have been approved for issue
by the Board of Directors on 31 August 2011.
The information relating to the six months ended 30
June 2011 and 30 June 2010 is unaudited and does not
constitute statutory accounts within the meaning of
section 435 of the Companies Act 2006. The statutory
accounts for the year ended 31 December 2010, prepared
under adopted IFRS (International Financial Reporting
Standards), have been reported on by the Group's auditors
and delivered to the Registrar of Companies. The auditors'
report in accordance with Chapter 3 of Part 16 of
the Companies Act 2006 in relation to those accounts
was unqualified.
2. Summary of significant accounting policies
2.1 Basis of preparation
These condensed consolidated interim financial statements
are for the six months ended 30 June 2011. They have
been prepared in accordance with IAS 34 "Interim Financial
Reporting". They do not include all of the information
required for full annual financial statements, and
should be read in conjunction with the consolidated
financial statements of the Group for the year ended
31 December 2010, which have been prepared in accordance
with IFRSs.
The accounting policies applied and methods of computation
are consistent with those of the annual financial
statements for the year ended 31 December 2010, as
described in those financial statements. The accounting
policies have been consistently applied to all the
periods presented.
A number of new standards, amendments to standards
and interpretations have become effective since the
beginning of the financial year but these have no
material effect on the results or financial position
of the Group.
2.2 Taxation
Current tax expense is recognised in these condensed
consolidated interim financial statements based on
estimated effective tax rates for the full year.
3. Segmental reporting
The Directors consider that the Group is engaged in
a single segment of business, being design, manufacture
and supply of high-end embedded computer products,
and that therefore the Company has only a single operating
segment. The key measure of performance used by the
Board to assess the Group's performance is the Group's
profit before tax, as calculated under IFRS, and therefore
no reconciliation is required between the measure
of profit or loss used by the Board and that contained
in the condensed consolidated interim financial statements.
4. 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 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 shares, share options.
The inputs to the earnings per share calculation are
shown below:
Six months Six months
ended ended Year ended
30/06/11 30/06/10 31/12/10
GBP GBP GBP
Profit attributable to ordinary
equity holders 1,035,625 774,122 2,030,161
=========== ========== ===========
Six months Six months
ended ended Year ended
30/06/11 30/06/10 31/12/10
N(o) N(o) N(o)
Weighted average number of ordinary
shares for basic earnings per
share 71,437,245 71,499,012 71,498,039
Adjustment for share options 588,738 565,440 505,238
----------- ---------- -----------
Weighted average number of ordinary
shares for diluted earnings per
share 72,025,983 72,064,452 72,003,277
=========== ========== ===========
5. Copies of this report will be sent to shareholders and are available at
the Company's Registered Office.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR UAABRAKAWOAR
Concurrent Technologies (LSE:CNC)
Historical Stock Chart
From Sep 2024 to Oct 2024
Concurrent Technologies (LSE:CNC)
Historical Stock Chart
From Oct 2023 to Oct 2024
