Trading conditions may be tough but Concurrent Technologies (CNC) performed well last year - through a combination of a growing product range and continued investment. During 2012, the specialist computer products manufacturer launched 14 new products, including 11 high-performance boards incorporating the latest Intel processors.
With a high level of reliability and substantial processing power, the group's products are ideal for military applications and the telecommunications and security markets. Moreover, the group continued its focus on providing integrated software support with the release of its Board Level Security Package - to protect critical technologies and data. The group also boasts a diversified geographic revenue stream, with three-quarters of all products being sold outside the UK. Furthermore, as well as providing existing customers with the opportunity to constantly upgrade systems, the group is also diversifying into scientific applications.
Admittedly, cash profits did fall from 2011's £3.9m to £3.5m; however, this was mainly the result of some orders being rescheduled and extended timescales on some customer projects. Meanwhile, the gross margin held up well at 51.7 per cent compared with 52.1 per cent a year earlier. Indeed, broker Cenkos reckons that a broader product mix will help to increase gross margins - it forecasts 2013 adjusted pre-tax profit of £3.9m, giving EPS of 4.9p (from £3.6m and 4.9p in 2012).
CONCURRENT TECHNOLOGIES (CNC) | ||||
|---|---|---|---|---|
| ORD PRICE: | 51p | MARKET VALUE: | £36.1m | |
| TOUCH: | 49-52p | 12-MONTH HIGH: | 55p | LOW: 39p |
| DIVIDEND YIELD: | 3.3% | PE RATIO: | 19 | |
| NET ASSET VALUE: | 20p* | NET CASH: | £4.32m** | |
| Year to 31 Dec | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2008 | 12.6 | 2.95 | 3.26 | 1.30 |
| 2009 | 12.9 | 2.80 | 3.55 | 1.40 |
| 2010 | 12.6 | 2.32 | 2.84 | 1.50 |
| 2011 | 13.8 | 2.71 | 3.63 | 1.60 |
| 2012 | 12.7 | 2.00 | 2.75 | 1.70† |
| % change | -7 | -26 | -24 | +6 |
*Includes intangible assets of £5.9m, or 8p a share **Includes £1m of other financial assets †Second half-year dividend paid on 5 Apr | ||||
