RNS Number:3403W
Concurrent Technologies PLC
10 March 2004
CONCURRENT TECHNOLOGIES PLC
Preliminary results for the
year ended 31 December 2003
Clear market upturn - competitive position maintained
Concurrent Technologies Plc, which manufactures high end embedded computer
products for critical applications in the defence, transportation,
communications and industrial markets, announces preliminary results for the
year to 31 December 2003.
Main points
* Profits in-line with stock market expectations: Pre-tax profit #280k
(2002: #553k), turnover #7.3m (2002: #7.5m)
* Strong net cash position - #3.3 million
* Established recovery in all markets, particularly communications and
defence
* Increased investment in R&D - extension of existing computer ranges,
introduction of high temperature versions, consolidation of switched fabric
technologies
* Increasing trend towards customer outsourcing of engineering function
presents Concurrent Technologies with opportunities
Michael Collins, Chairman, commented:
"Our target markets are showing strong signs of recovery, driven in particular
by the increase in expenditure in the USA on defence and homeland security
projects, and the upturn in design activity within new telecoms and internet
security applications in the USA and China. Our latest products ensure that we
are positioned to take advantage of this business upturn; our recent acceptance
into the Intel(R) Communications Alliance should also assist us to increase our
profile within our industry sector."
"Whilst the component supply problem we encountered last year has been resolved
through the introduction of the new generation boards, we still expect it to
have some impact on the first half of the current year. We are, however,
optimistic with regards to the prospects for 2004 as a whole."
10 March 2004
Enquiries
Company Name Tel
---------- ------------ -------------- ------------
Concurrent Technologies Glen Fawcett Managing Director 01206 752626
---------- ------------ -------------- ------------
College Hill Nicholas Nelson 020 7457 2020
CHAIRMAN'S STATEMENT
Business Summary
Concurrent Technologies designs, builds and supplies high end embedded computer
products to the defence, transportation, communication and industrial markets.
These computer products are integrated into a variety of applications which
require very high levels of processing power and superior levels of reliability;
applications include communications, networking, medical imaging, industrial
automation, scientific research and military systems.
The main product range includes single and dual processor computer boards using
Intel(R) and Motorola(R) Central Processing Units (CPUs) for the CompactPCI(R),
VME and Multibus II architectures. In addition to hardware design capability,
our engineering teams undertake a significant amount of software and firmware
development to provide interoperability between products, generate test software
both on-board and for production test purposes, and also provide support for
leading embedded and real-time operating systems.
Financial
Market conditions improved considerably through 2003 and despite the component
supply problem encountered in the last quarter, we still achieved a Group
turnover for the year of #7,303,805. The consolidated pre-tax profit of the
Group for the year to 31 December 2003 was #280,283 (2002: #552,895) with our
two USA subsidiaries both reporting profits.
We ended the year with cash of #3,263,408 and no borrowings.
Review of 2003 Operations and Plans for 2004
As stated in September 2003, when we announced our interim results, our business
outlook continues to improve. We suffered an unexpected setback in October
through the early discontinuance of a key component used in the most important
of our then current range of boards. This meant a short term loss of sales
revenue for us in the last quarter of 2003 as customers deferred their purchase
decisions until the release of the next generation products. I am pleased to
report that the new products have now been released.
There has been a clear upturn in our markets, particularly the defence and
communications markets of the USA, during the last six months. New VME and
CompactPCI boards driven by Intel Pentium(R) M processors have now been released
and made available to customers. Extended temperature range versions, which are
especially suited to defence applications where boards often have to operate in
hostile environments, will follow shortly.
The recovery in the communications sector is now well established. As a result
we are seeing an increase in enquiries and orders for our embedded computer
products to meet the growing demand forcomputers which can cope with the relay
of large parcels of data and for monitoring and testing the quality and
functionality of communications systems.
Future Strategy
We have again invested heavily in design and development, increasing it in 2003
to over #1 million for the first time. Our strategy is to continue to support
and expand all three of our existing embedded computer technology architectures.
These are VME, powered by Intel and Motorola PowerPC CPUs, and CompactPCI and
Multibus II, both powered by Intel CPUs. Extended temperature range versions,
offering higher gross margins, will also be produced. Where possible, we will be
using low power devices such as Intel's Pentium M processors and their
successors.
The next generation computer architecture we plan to support is AdvancedTCA(R)
which is a technology using very high speed serial inter-connections based on
switched fabric methods instead of the traditional parallel connections. This
new architecture is particularly aimed at the telecommunications markets because
the larger board size offers higher functionality, better cooling and an
improved price/performance ratio.
During 2003 we made a significant investment in new Computer Aided Design
equipment which has recently been used to develop a new graphics PMC controller
released in February 2004 and is currently being used on one of our new VME
Pentium M boards. We expect to become quicker in getting new concepts to market
which we believe will boost our sales opportunities.
We also intend to position ourselves to take advantage of an increasing trend
towards outsourcing. Many customers have reduced their in house engineering
staff to reduce fixed costs. Such customers are now looking to outsource the
design and manufacture of their systems to companies such as ours. Thus we
intend to look to enhance our capabilities to produce complete embedded computer
systems as well as the component boards which go in them.
As defence related applications have continued to grow in importance for us, so
too has our emphasis on the USA market place. The second Iraq war has resulted
in continued good market conditions for high-tech defence equipment which is
generating an increasing demand for VME boards using Intel processors. Defence
projects have a longer design-in lead time than commercial projects but have a
much longer life time expectation. Our sales and marketing channels will be
increased in the USA in particular to improve our market position.
Dividend
The trading environment for the Group is healthy and there is an improving
outlook for business this year. We have therefore decided to recommend the
payment of a final dividend of 0.25 pence per share (making a total for the year
including the interim dividend of 0.50 pence per share). The total cost of this
final dividend will amount to #181,750. The ex-dividend date for the final
dividend is 14 April 2004, the record date is 16 April 2004 and, subject to the
shareholders' approval, payment will be made on 30 April 2004.
Outlook
Our target markets are showing strong signs of recovery, driven in particular by
the increase in expenditure in the USA on defence and homeland security
projects, and the upturn in design activity within new telecoms and internet
security applications in the USA and China. Our latest products ensure that we
are positioned to take advantage of this business upturn; our recent acceptance
into the Intel Communications Alliance should also assist us to increase our
profile within our industry sector.
Whilst the component supply problem we encountered last year has been resolved
through the introduction of the new generation boards, we still expect it to
have some impact on the first half of the current year. We are, however,
optimistic with regards to the prospects for 2004 as a whole.
Corporate Governance
As an AIM listed company Concurrent Technologies Plc is not obliged to comply
with the Combined Code. We do however acknowledge the overall importance of the
guidelines and apply as many of the principles therein as are appropriate to a
company of our size and nature. With this in mind we have decided to appoint an
additional non-executive director in the coming months and are currently in the
interview process.
Annual General Meeting
The Annual General Meeting this year will be held on 23 April 2004.
All companies and product names are trademarks of their respective
organisations.
Consolidated Profit and Loss Account
Year to Year to
Note 31 December 31 December
2003 2002
# #
Turnover 7,303,805 7,537,452
Cost of sales 4,202,524 4,130,171
-------- --------
Gross profit 3,101,281 3,407,281
Net operating expenses 2,885,769 2,902,596
-------- --------
Operating profit before goodwill
amortisation 215,512 504,685
Amortisation of goodwill 28,018 30,506
-------- --------
Group operating profit 187,494 474,179
Interest receivable 92,789 78,716
-------- --------
Profit on ordinary activities before
taxation 280,283 552,895
Taxation on profit on ordinary activities (50,662) 96,169
-------- --------
Profit for the financial year 330,945 456,726
Dividend 363,500 254,450
-------- --------
Retained (loss)/profit for the year (32,555) 202,276
======== ========
Basic and diluted earnings per share 3 0.46p 0.63p
======== ========
Basic and diluted earnings per share
excluding
amortisation of goodwill 3 0.49p 0.67p
======== ========
Statement of Total Recognised Gains and Losses
Year to Year to
31 December 31 December
2003 2002
# #
Profit for the financial year 330,945 456,726
Currency translation differences on foreign
currency net investments (123,590) (107,193)
--------- ---------
Total recognised gains relating to the year 207,355 349,533
========= =========
Consolidated Balance Sheet
31 December 31 December
2003 2002
# #
FIXED ASSETS
Goodwill 154,612 200,224
Tangible assets 536,708 559,764
---------- -----------
691,320 759,988
---------- -----------
CURRENT ASSETS
Stocks and work in progress 956,240 1,111,317
Debtors 1,417,753 1,869,807
Cash at bank and in hand 3,263,408 2,635,225
---------- -----------
5,637,401 5,616,349
CREDITORS:
amounts falling due within one year 1,205,288 1,094,915
---------- -----------
NET CURRENT ASSETS 4,432,113 4,521,434
---------- -----------
TOTAL ASSETS LESS
CURRENT LIABILITIES 5,123,433 5,281,422
Provision for liabilities and charges 33,032 34,876
---------- -----------
NET ASSETS 5,090,401 5,246,546
========== ===========
CAPITAL AND RESERVES
Called up share capital 727,000 727,000
Share premium account 3,405,817 3,405,817
Capital redemption reserve 256,976 256,976
Profit and loss account 700,608 856,753
---------- -----------
EQUITY SHAREHOLDERS' FUNDS 5,090,401 5,246,546
========== ===========
The Financial Statements were approved by the Board of Directors on 9 March 2004
and signed on its behalf by:
M Collins G A Fawcett
Chairman Managing Director
Consolidated Cash Flow Statement
2003 2002
# #
Net cash inflow from operating activities 1,238,346 578,644
Returns on investments and servicing of finance:
Interest received 92,789 78,716
Taxation (11,332) (64,258)
Capital expenditure and financial investment:
Payments to acquire tangible fixed assets (176,627) (106,676)
Acquisitions and disposals:
--------- ---------
Purchase of subsidiary undertakings - (1,194,333)
Net bank balances acquired with subsidiary undertakings - 197,444
--------- ---------
Net cash outflow from acquisitions and disposals - (996,889)
Equity dividends paid (436,200) -
--------- ---------
Increase/(Decrease) in cash 706,976 (510,463)
========= =========
NOTES
1. The financial information set out above does not constitute the company's
statutory accounts for the years ended 31 December 2003 or 2002, but is
derived from those accounts. Statutory accounts for 2002 have been delivered
to the Registrar of Companies and those for 2003 will be delivered following
the company's annual general meeting. The auditors have reported on those
accounts; their reports were unqualified and did not contain a statement
under s237(2) or (3) Companies Act 1985.
2. The consolidated Financial Statements have been prepared on a basis
consistent with the Financial Statements for the year ended 31 December
2002.
3. The calculation of earnings per share is based on the weighted average
number of Ordinary Shares in issue of 72,700,012 (2002 - 72,700,012), and
on the profit after tax of #330,945 (2002 - Profit: #456,726). Fully diluted
earnings per share is the same as basic earnings per share.
Copies of the Annual Report will be sent to Shareholders and will also be
available from the Company's Registered Office: C/O MSP Secretaries, 22 Melton
Street, London, NW1 2BW.
This information is provided by RNS
The company news service from the London Stock Exchange
END
FR EAXDNEALLEFE
Concurrent Technologies (LSE:CNC)
Historical Stock Chart
From Dec 2024 to Jan 2025
Concurrent Technologies (LSE:CNC)
Historical Stock Chart
From Jan 2024 to Jan 2025
