The delay of military contracts proved to be the most intractable problem for Aim-traded computer board maker Concurrent Technologies, and knocked more than £500,000 from last year's operating profits. Diversification of its client base in now on the cards, but a recovery in some of the company's defence markets could already be under way.
Concurrent has a competitive position as a first-choice partner for Intel products to the defence sector, where its low power-usage products are useful in extreme environments. The company launched eight significant new Intel-based products in 2010 as well as adding new capabilities in the detection of improvised explosive devices.
"We are pleased to note that the recovery in economic conditions within our other markets continues, and with a strong order book, we expect a significant increase in sales in the first half of the current year compared with the same period last year," said Chairman Michael Collins.
Analysts at Cenkos estimate that the company's order book is currently 50 per cent higher than this time last year, which supports their 2011 reported pre-tax profit estimate of £3.1m, giving EPS of 3.8p (from £2.3m and 2.8p in 2010).
| ORD PRICE: | 38p | MARKET VALUE: | £27m | |
| TOUCH: | 37-39p | 12-MONTH HIGH: | 45p | LOW: 26p |
| DIVIDEND YIELD: | 3.9% | PE RATIO: | 13 | |
| NET ASSET VALUE: | 17p* | NET CASH: | £4.6m | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2006 | 12.5 | 2.29 | 2.42 | 1.0 |
| 2007 | 10.6 | 2.43 | 2.62 | 1.2 |
| 2008 | 12.6 | 2.95 | 3.26 | 1.3 |
| 2009 | 12.9 | 2.80 | 3.55 | 1.4 |
| 2010 | 12.6 | 2.32 | 2.84 | 1.5 |
| % change | -2 | -17 | -20 | +7 |
Ex-div: 23 Mar Payment: 31 Mar *Includes intangible assets of £4.5m, or 6p a share Aim: Technology hardware & equipment | ||||
