Robust defence budgets continue to offset weaker telecoms markets for Concurrent Technologies. Defence represents over 60 per cent of total sales, much of which is exported to the US, where military spending remains a priority.
Exports represent 87 per cent of all revenue so the weakening pound helped gross margins rise from 53 per cent to 56 per cent last year, although much of that was eaten away by rising operating costs, from £3.9m to £4.5m, thanks mainly to a 60 per cent hike in research and development R&D, to £3.2m. Concurrent plans to continue boosting R&D, partly to secure and grow its defence revenues, but also to capitalise on improving telecoms markets.
Intel's latest i7 quad-core processor technology is now being used, which should deliver longer life cycle products that require less power to run. Ruggedised versions are perfect for military communications and surveillance technologies - spotting home-made bombs, for example, in Iraq and Afghanistan.
Acquisitions are also on the agenda this year, supported by the company's £4.9m cash pile.
Brewin Dolphin is yet to update its forecasts but was previously looking for £3.3m taxable profit and EPS of 3.6p.
| ORD PRICE: | 39p | MARKET VALUE: | £28m | |
| TOUCH: | 37-40p | 12-MONTH HIGH: | 46p | LOW 30p |
| DIVIDEND YIELD: | 3.6% | PE RATIO: | 11 | |
| NET ASSET VALUE: | 15p* | NET CASH: | £4.9m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2005 | 10.7 | 1.45 | 1.59 | 0.75 |
| 2006 | 12.5 | 2.29 | 2.42 | 1.00 |
| 2007 | 10.6 | 2.43 | 2.62 | 1.20 |
| 2008 | 12.6 | 2.95 | 3.26 | 1.30 |
| 2009 | 12.9 | 2.80 | 3.55 | 1.40 |
| % change | +2 | -5 | +9 | +8 |
Ex-div: 10 Mar Payment: 1 Apr *Includes intangible assets of £3.7m, or 5p a share | ||||
