Specialist IT supplier Concurrent Technologies (CNC) posted a 14% increase in revenue for FY25 on record order inflows. The majority of the AIM-listed firm’s sales are to defence primes such as BAE Systems (BA.) and Boeing (BA).
Record orders and new customers
For the year to December, Concurrent’s revenue rose 14% to £45.9 million and pre-tax profit rose 25% to £6.5 million. Product sales increased 6% to £40.5 million while systems sales showed strong momentum up 157% to £5.4 million.
The firm’s order book swelled to a record £47 million, helped by demand from Europe and Asia as it grew its customer base. In addition, its technology is increasingly being deployed in next-generation defence programmes.
The firm launched five new products last year, strengthening its portfolio, and five more products have been launched this year. Also, Concurrent is increasingly winning larger contracts, improving revenue visibility as well as deepening customer relationships.
Last year, the company won its largest ever contract, its first major outsourced computer design project. The agreement was recently expanded to include equipment for the customer’s own production and testing needs.
Positive outlook
The firm said it started FY26 with ‘positive momentum’ thanks to design wins and expanded operational capacity. It also said it was confident of meeting market expectations this year in terms of results.
CEO Miles Adcock explained to Sharesify the firm had already secured its supply of DRAM for this year and part of next year. Concurrent has early access to the latest processors from Intel (INTC) and Nvidia (NVDA) which are integral to its new products.
It has also secured space to expand UK production this year and aims to double output to meet growing demand. Meanwhile, it continues to build its systems business after the highly successful 2023 acquisition of US firm Philips Aerospace.
The sky really is the limit for Concurrent as everything seems to be pointing upward for the business. Demand for its products from the defence sector is increasing along with contract values.
The firm is also growing its international footprint and reputation with non-UK and US primes. Moreover, the new systems order is a major validation of its decision to diversity into design services alongside manufacturing.
Analysts have pencilled in £52 million of sales and £8 million of pre-tax profit for this year. That means growth of 13% and 23% against 14% and 25% last year, but we suspect the firm beats forecasts.
Not only does it have momentum, it will shortly bring on more capacity to meet rising demand. For an initial outlay of £5 million and annual running costs of £2 million, it will add another £40 million of sales.
Read the press release here: https://concurrent.tech/investors
