Concurrent Technologies (CNC) warned last summer that export licensing regulations would hammer orders from emerging markets for components with encryption technology. They did. Reported profits plunged by three-quarters to less than £500,000. But pre-tax profit before amortisation and a big write-down on research and development design assets fell just 17 per cent to £3m, a bit better than expected. Management believes the export issue could be resolved by the end of June, too.
IC TIP:
Hold
at
42p
So does broker Cenkos Securities. It has pencilled in adjusted pre-tax profit of £3.4m for 2014, giving adjusted EPS of 4.3p.