TIDMCNC
RNS Number : 1759I
Concurrent Technologies PLC
26 August 2016
26 August 2016
CONCURRENT TECHNOLOGIES PLC
(the "Company")
Interim Results for the six months ended 30 June 2016
Concurrent Technologies Plc (AIM: CNC), 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 2016.
Financial Highlights:
-- Turnover for period GBP9.0m (H1 2015: GBP9.6m)
-- Improvement in Gross Margins to 54.8% (H1 2015: 48.7%)
-- Profit before tax GBP1.5m (H1 2015: GBP1.6m)
-- Earnings per share for the period 2.12p (H1 2015: 2.06p)
-- Interim dividend declared 0.80p per share (H1 2015: 0.70p), an increase of 14.3%
-- Net cash, including cash deposits GBP8.2m (H1 2015: GBP5.7m); no borrowings
Operational Highlights:
-- Exports increased to 81% of total revenues
-- Continued high level of investment in R&D
-- Introduction of development platforms
Michael Collins, Chairman, commented:
"After a strong performance in the first half of the year we
have started the second half with a healthy order book and balance
sheet. The outlook for the remainder of this year remains
positive."
Enquiries:
Concurrent Technologies Plc
Glen Fawcett, CEO +44 (0)1206 752 626
Newgate (Financial PR)
Bob Huxford
Helena Bogle +44 (0)20 7653 9850
Cenkos Securities plc (NOMAD)
Neil McDonald +44 (0)131 220 9771
Nick Tulloch/Beth McKiernan +44 (0)131 220 9772/8
CHAIRMAN'S STATEMENT
Financial Summary
I am very pleased to report an excellent start to 2016,
continuing the strong performance seen at the end of 2015. EBITDA
for the six months to 30 June 2016 was GBP2.2m (H1 2015: GBP2.3m).
The unaudited profit before tax for the same period was GBP1.5m (H1
2015: GBP1.6m) with associated earnings per share of 2.12 pence (H1
2015: 2.06 pence). Group Revenues at GBP9.0m (H1 2015: GBP9.6m)
were slightly below the exceptional performance of the first half
of last year. Gross Margins were much improved at 54.8% (H1 2015:
48.7%).
The Group balance sheet is also stronger and our cash balances
(including cash deposits) at 30 June 2016 were GBP8.2m (H1 2015:
GBP5.7m), despite the increased dividend payment made during the
period and R&D expenditure having been maintained at the same
levels as the first half of 2015 (GBP1.6m).
Dividend
The Board has declared a first interim dividend of 0.80p per
share (H1 2015: 0.70p) - an increase of 14.3%. The total cost of
this dividend will amount to GBP580,948. The ex-dividend date for
the interim dividend is 15 September 2016, the record date is 16
September 2016 and the payment date is 30 September 2016.
Review of Operations
Defence related revenues increased significantly during the
first six months compared to the first half of 2015. Revenues were
generated from all regions but predominantly from the US. Sales
related to industrial applications have also improved during the
period due mainly to demand from overseas customers. Exports have
increased to 81% of total Group revenues (H1 2015: 52%)
We have continued to extend our VPX(TM) product range by
offering development platforms which provide our customers with a
quick start to assist them in the development of their systems.
The majority of the Company's world-wide transactions are
conducted in sterling and in US dollars and so, following the
recent sharp decline in the value of sterling against the US
dollar, the Company conducted an additional review of its financial
risk and trading plans. The review confirmed that the Company's
exposure to exchange risk in the short to medium term is still
mitigated to a large extent by the ability to offset receipts from
sales against payments for purchases in the same currency. We can
also expect to benefit from dollar denominated exports to the USA
in the short term.
Future Plans
We will continue to expand our range by developing products for
the VPX(TM), VME, AMC and CompactPCI(R) bus architectures. Many
versions of these products will be designed for use in harsh
environments, particularly for military applications and we
continue to recruit engineers in our design facilities in the UK,
US and India, to enable the Company to develop more sophisticated
ruggedized versions of our products.
Complementary software and firmware packages continue to be
developed to provide high-speed data transfer, ease of integration
and security which further enhance our product portfolio. We will
maintain our strategy of designing more innovative products for
complex, high technology, low to medium volume and high margin
applications.
Outlook
After a strong performance in the first half of the year we have
started the second half with a healthy order book and balance
sheet. The outlook for the remainder of this year remains
positive.
Michael Collins
Chairman
25 August 2016
All companies and product names are trademarks of their
respective organisations.
CONDENSED CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME
unaudited interim results to 30 June 2016
Six months Six months Year
ended ended ended
Note 30/06/16 30/06/15 31/12/15
GBP GBP GBP
CONTINUING OPERATIONS
Revenue 8,970,694 9,595,467 17,073,829
Cost of sales 4,054,125 4,923,619 8,437,564
----------------------------------- ---- ---------- ---------- ----------
Gross profit 4,916,569 4,671,848 8,636,265
Net operating expenses 3,397,753 3,078,775 5,945,140
----------------------------------- ---- ---------- ---------- ----------
Group operating profit 1,518,816 1,593,073 2,691,125
Finance income 26,336 17,224 42,292
----------------------------------- ---- ---------- ---------- ----------
Profit before tax 1,545,152 1,610,297 2,733,417
Tax 4,824 112,420 (21,351)
----------------------------------- ---- ---------- ---------- ----------
Profit for the period 1,540,328 1,497,877 2,754,768
----------------------------------- ---- ---------- ---------- ----------
Other Comprehensive Income
Exchange differences on
translating foreign operations 223,385 79,535 62,918
Tax relating to components - - -
of other comprehensive
income
----------------------------------- ---- ---------- ---------- ----------
Other Comprehensive Income
for the period, net of
tax 223,385 79,535 62,918
----------------------------------- ---- ---------- ---------- ----------
Total Comprehensive Income
for the period 1,763,713 1,577,412 2,817,686
----------------------------------- ---- ---------- ---------- ----------
Profit for the period attributable
to:
----------------------------------- ---- ---------- ---------- ----------
Equity holders of the parent 1,540,328 1,497,877 2,754,768
----------------------------------- ---- ---------- ---------- ----------
Total Comprehensive Income
attributable to:
----------------------------------- ---- ---------- ---------- ----------
Equity holders of the parent 1,763,713 1,577,412 2,817,686
----------------------------------- ---- ---------- ---------- ----------
Earnings per share
Basic earnings per share 4 2.12p 2.06p 3.79p
Diluted earnings per share 4 2.12p 2.06p 3.79p
CONDENSED CONSOLIDATED BALANCE SHEET
unaudited interim results to 30 June 2016
As at As at As at
30/06/16 30/06/15 31/12/15
ASSETS GBP GBP GBP
Non-current assets
Property, plant and equipment 643,786 695,632 690,357
Intangible assets 6,397,135 6,026,976 6,307,044
Deferred tax assets 101,361 105,398 129,647
7,142,282 6,828,006 7,127,048
Current assets
Inventories 2,870,131 4,184,343 3,774,285
Trade and other receivables 2,642,486 3,095,560 2,520,573
Current tax assets 163,180 75,565 284,419
Other financial assets - - 1,000,000
Cash and cash equivalents 8,179,993 5,700,287 4,873,815
------------------------------- ---------- ---------- ----------
13,855,790 13,055,755 12,452,092
Total assets 20,998,072 19,883,761 19,580,140
------------------------------- ---------- ---------- ----------
LIABILITIES
Non-current liabilities
Deferred tax liabilities 1,280,077 1,283,929 1,305,237
Long term provisions 10,398 10,981 9,968
------------------------------- ---------- ---------- ----------
1,290,475 1,294,910 1,315,205
Current liabilities
Trade and other payables 2,938,487 3,488,379 2,411,524
Short term provisions 32,712 33,726 31,897
Current tax liabilities 6,735 3,072 -
------------------------------- ---------- ---------- ----------
2,977,934 3,525,177 2,443,421
Total liabilities 4,268,409 4,820,087 3,758,626
------------------------------- ---------- ---------- ----------
Net assets 16,729,663 15,063,674 15,821,514
------------------------------- ---------- ---------- ----------
EQUITY
Capital and reserves
Share capital 739,000 739,000 739,000
Share premium account 3,693,818 3,693,818 3,693,818
Capital redemption reserve 256,976 256,976 256,976
Cumulative translation
reserve 302,026 95,258 78,641
Profit and loss account 11,737,843 10,278,622 11,053,079
------------------------------- ---------- ---------- ----------
Equity attributable to
equity holders of the parent 16,729,663 15,063,674 15,821,514
Total equity 16,729,663 15,063,674 15,821,514
------------------------------- ---------- ---------- ----------
CONDENSED CONSOLIDATED CASH FLOW STATEMENT
unaudited interim results to 30 June 2016
Six months Six months Year
ended ended ended
30/06/16 30/06/15 31/12/15
GBP GBP GBP
Cash flows from operating
activities
Profit before tax for the
period 1,545,152 1,610,297 2,733,417
Adjustments for:
Finance income (26,336) (17,224) (42,292)
Depreciation 98,966 106,821 224,778
Amortisation 627,065 638,198 1,254,083
Impairment loss 499,509 505,727 690,201
Loss on disposal of property,
plant and equipment - - (1,334)
Share-based payment 1,139 9,787 26,192
Exchange differences 272,299 94,681 86,711
(Increase)/decrease in
inventories 904,154 (1,484,685) (1,074,627)
(Increase)/decrease in
trade and other receivables (121,913) (305,134) 269,853
Increase/(decrease) in
trade and other payables 528,208 991,326 (88,371)
---------------------------------- ----------- ----------- -----------
Cash generated from operations 4,328,243 2,149,794 4,078,611
Tax received/(paid) 120,715 105,193 48,956
---------------------------------- ----------- ----------- -----------
Net cash generated from
operating activities 4,448,958 2,254,987 4,127,567
---------------------------------- ----------- ----------- -----------
Cash flows from investing
activities
Interest received 26,336 17,224 42,292
Cash placed on deposit 1,000,000 - (1,000,000)
Purchases of property,
plant and equipment (PPE) (43,728) (195,398) (305,874)
Proceeds from sale of PPE 1,500
Purchases of intangible
assets (1,214,874) (1,152,257) (2,231,637)
---------------------------------- ----------- ----------- -----------
Net cash used in investing
activities (232,266) (1,330,431) (3,493,719)
---------------------------------- ----------- ----------- -----------
Cash flows from financing
activities
Equity dividends paid (870,942) (834,904) (1,343,141)
Sale/(Purchase) of treasury
shares 19,800 - (15,461)
Net cash used in financing
activities (851,142) (834,904) (1,358,602)
---------------------------------- ----------- ----------- -----------
Effects of exchange rate
changes on cash and cash
equivalents (59,372) (13,870) (25,936)
Net increase/(decrease)
in cash 3,306,178 75,782 (750,690)
Cash at beginning of period 4,873,815 5,624,505 5,624,505
---------------------------------- ----------- ----------- -----------
Cash at the end of the
period 8,179,993 5,700,287 4,873,815
---------------------------------- ----------- ----------- -----------
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
unaudited interim results to 30 June 2016
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
2015 739,000 3,693,818 256,976 15,723 9,595,122 14,300,639
Profit for the period - - - - 1,497,877 1,497,877
Exchange differences
on translating foreign
operations - - - 79,535 - 79,535
------------------------ -------- --------- ----------- ------------ ---------- ----------
Total recognised
comprehensive income
for the period - - - 79,535 1,497,877 1,577,412
Share-based payment - - - - 9,787 9,787
Deferred tax on
share based payment - - - - 10,740 10,740
Dividends paid - - - - (834,904) (834,904)
Balance at 30 June
2015 739,000 3,693,818 256,976 95,258 10,278,622 15,063,674
------------------------ -------- --------- ----------- ------------ ---------- ----------
Profit for the period - - - - 1,256,891 1,256,891
Exchange differences
on translating foreign
operations - - - (16,617) - (16,617)
------------------------ -------- --------- ----------- ------------ ---------- ----------
Total recognised
comprehensive income
for the period - - - (16,617) 1,256,891 1,240,274
Share-based payment - - - - 16,405 16,405
Deferred tax on
share based payment - - - - 24,859 24,859
Dividends paid - - - - (508,237) (508,237)
Purchase of treasury
shares - - - - (15,461) (15,461)
Balance at 31 December
2015 739,000 3,693,818 256,976 78,641 11,053,079 15,821,514
------------------------ -------- --------- ----------- ------------ ---------- ----------
Profit for the period - - - - 1,540,328 1,540,328
Exchange differences
on translating foreign
operations - - - 223,385 - 223,385
------------------------ -------- --------- ----------- ------------ ---------- ----------
Total recognised
comprehensive income
for the period - - - 223,385 1,540,328 1,763,713
Share-based payment - - - - 1,139 1,139
Deferred tax on
share based payment - - - - (5,561) (5,561)
Dividends paid - - - - (870,942) (870,942)
Sale of treasury
shares - - - - 19,800 19,800
Balance at 30 June
2016 739,000 3,693,818 256,976 302,026 11,737,843 16,729,663
------------------------ -------- --------- ----------- ------------ ---------- ----------
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 ("the Company")
is the Group's ultimate parent company. It
is incorporated and domiciled in Great Britain.
Concurrent Technologies Plc 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 25 August 2016.
The information relating to the six months
ended 30 June 2016 and 30 June 2015 is unaudited
and does not constitute statutory accounts
within the meaning of section 434 of the Companies
Act 2006. The statutory accounts for the year
ended 31 December 2015, prepared in accordance
with IFRSs (International Financial Reporting
Standards) as adopted by the European Union,
have been reported on by the Group's auditors
and delivered to the Registrar of Companies.
The auditors' report was unqualified, did not
draw attention to any matters by way of emphasis
and did not contain a statement under section
498(2) or (3) of the Companies Act 2006.
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 2016. 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 2015, which
have been prepared in accordance with adopted
IFRSs.
The accounting policies applied and methods
of computation are consistent with those of
the annual financial statements for the year
ended 31 December 2015, as described in those
financial statements. The accounting policies
have been consistently applied to all the periods
presented.
There are no new IFRSs or IFRIC interpretations
that are effective for the first time for the
financial period beginning on or after 1 January
2016 that would be expected to have a material
impact on the results or financial position
of the Group.
2.2 Going Concern
The Directors are satisfied that the Group
has sufficient resources to continue in operation
for the foreseeable future, a period of not
less than 12 months from the date of this report.
Accordingly, they continue to adopt the going
concern basis in preparing these condensed
financial statements.
2.3 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
30/06/16 30/06/15 31/12/15
GBP GBP GBP
Profit attributable
to ordinary equity holders 1,540,328 1,497,877 2,754,768
----------------------------- --- ----------- ----------- -----------
Six months Six months
ended ended Year ended
30/06/16 30/06/15 31/12/15
N(o) N(o) N(o)
Weighted average number
of ordinary
shares for basic earnings
per share 72,604,009 72,600,490 72,594,150
Adjustment for share
options 481 7,872 -
----------------------------- --- ----------- ----------- -----------
Weighted average number
of ordinary shares for
diluted earnings per
share 72,604,490 72,608,362 72,594,150
----------------------------- --- ----------- ----------- -----------
5. Post reporting date events
There were no material events subsequent to
the end of the interim reporting period that
have not been reflected in these interim financial
statements.
6. Shareholder Communication
A copy of this interim statement is available
from the Company's Registered Office at 4 Gilberd
Court, Newcomen Way, Colchester, Essex, CO4
9WN, UK and from the Company's website at www.cct.co.uk.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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