Final Results

Concurrent Technologies PLC 3 March 2003 CONCURRENT TECHNOLOGIES PLC Preliminary Results for the year to 31st December 2002 Continued robust performance Concurrent Technologies Plc, which manufactures single board computers known as Multibus II, CompactPCI(R) and VME for high demanding, critical applications, announces preliminary results for the year to 31st December 2002 Highlights • Pre tax profit up 8% to £0.55 million (2001: £0.51 million) • Defence market focus: * Sales in this area doubled * Development of new, more robust computers specifically for this market • Cash balance £2.6 million, zero borrowings • US operations now fully integrated with tangible benefits coming through • R&D Investment programme increased by 21% • Product range expanded Michael Collins, Chairman, commented: ' Although the overall market for embedded computers continues to be rather flat, there are pockets of activity. Our business structure provides flexibility and responsiveness which enables us to adapt quickly to market conditions. We now expect that the outcome for 2003 will be an improvement on 2002.' 3rd March 2003 ENQUIRIES: Concurrent Technologies Plc Tel: 01206 752 626 Glen Fawcett, Managing Director College Hill Tel: 020 7457 2020 Nicholas Nelson Chairman's statement Operations The past 12 months has been a challenging period for the company whereby we achieved a solid performance in the face of difficult markets and maintained a focus on long term growth. We have continued to invest a substantial amount for the future; in 2002 our design and development expenditure increased by 21% to £991,979 (2001 £815,774). This enabled us to expand all three of our existing embedded computer bus architectures (VME, CompactPCI(R) and Multibus II), which are based on Intel(R) CPUs, while also adding a Motorola(R) PowerPC(R) CPU range to our VME products. We have also targeted the defence market as a result of our decision to extend the temperature range within which our boards will operate to enable them to be used in more hostile environments than hitherto. Defence related applications accounted for 38% of our sales in 2002 as compared with 16% in 2001. This growth is attributed to good market conditions for defence equipment, especially for VME products, together with an increasing demand for Intel processors in defence applications. Many of these defence applications are long term projects where we have yet to supply production quantities, so we expect that this part of our business will increase steadily in the years ahead. Our VME revenues grew by more than 100% while our CompactPCI(R) revenues grew by in excess of 700% as compared with 2001. Both of these have been achieved due to our continuing emphasis in designing new products for these two types of embedded computers and the results of increased sales and marketing activities. One of our new dual-processor boards has already been released and the second, much faster version based on Intel(R) XeonTM processors, will be released imminently. Both of these products have been designed in response to numerous customer requests. We are still well positioned to participate again in the expected recovery of the telecommunications market, through our high performance CompactPCI product range. These products are very suitable for transmitting or processing large quantities of data, and have been particularly successful in applications involving voice testing, network traffic monitoring and routing and video overlay. US Acquisition The Financial Statements for 2002 incorporate almost a complete year of trading by Omnibyte Corporation which we acquired for $1,500,000 cash in January 2002. Omnibyte took a little time to adjust to the change of ownership and culture, but towards the end of 2002 the benefits of the acquisition were apparent. Omnibyte's business has now been integrated with that of Concurrent Technologies Inc and the design team, which was tasked to accelerate their design development programme to meet anticipated customer demand, has now released several new embedded computer products using Motorola(R) processors. These are a powerful addition to the Concurrent Technologies' product portfolio. We continue to expect increased revenue from these new products during the current year. Financial The consolidated pre-tax profit of the Group for the year 2002 was £552,895 compared with £508,768 for 2001. Uncertain market conditions continued through 2002 but we nevertheless increased our turnover to £7,537,452 (which included £660,935 from Omnibyte Corporation). Turnover in the second half of 2002 was £3,801,297 compared with £3,736,155 in the first half of the year. The second half of the year turned out much as we anticipated at the time we published our first half figures in September 2002. The market for embedded computers continued flat throughout the year. Although general market conditions have not yet materially changed, we do foresee an improvement in activity for Concurrent Technologies during 2003 driven largely by an expansion of our defence and electronic communications related business. Our cash position continues to be satisfactory. We ended the year with cash of £2,635,225 and we continue to have no borrowings. Dividend As I said in my statement in the Annual Report last year, the Board intended to return to the dividend list as soon as circumstances permit and I am pleased to report that in the light of a satisfactory trading performance during 2002 and an improving outlook for business this year, we have decided to recommend the payment of a final dividend of 0.35 pence per share. The total cost of this dividend will amount to £254,450. The ex-dividend date for the final dividend is 12th March 2003, the record date is 14th March 2003 and, assuming shareholders give their consent, payment will be made on 9th May 2003. Outlook Although the overall market for embedded computers continues to be rather flat, there are pockets of activity. Our business structure provides flexibility and responsiveness which enables us to adapt quickly to market conditions. We now expect that the outcome for 2003 will be an improvement on 2002. Annual General Meeting The Annual General Meeting this year will be held on 25th April 2003. All companies and product names are trademarks of their respective organisations. Consolidated Profit and Loss Account Restated Year to Year to 31 December 31 December 2002 2001 Turnover £ £ Continuing operations 6,876,517 6,600,190 Acquisition 660,935 - _________ _________ Total turnover 7,537,452 6,600,190 Cost of sales 4,130,171 3,434,451 _________ _________ Gross profit 3,407,281 3,165,739 Net operating expenses 2,902,596 2,753,512 _________ _________ Operating profit/(loss) before goodwill amortisation 504,685 412,227 Continuing operations 541,805 412,227 Acquisition (37,120) - Amortisation of goodwill 30,506 - _________ _________ Group operating profit 474,179 412,227 Net interest 78,716 96,541 _________ _________ Profit on ordinary activities before taxation 552,895 508,768 Taxation on profit on ordinary activities 96,169 154,976 _________ _________ Profit for the financial year 456,726 353,792 Dividend 254,450 - _________ _________ Retained profit for the year 202,276 353,792 ========= ========= Basic and diluted earnings per share 0.63p 0.49p ========= ========= Basic and diluted earnings per share excluding amortisation of goodwill 0.67p 0.49p ========= ========= Statement of Total Recognised Gains & Losses Restated Year to Year to 31 December 31 December 2002 2001 £ £ Profit for the financial year 456,726 353,792 Currency translation differences on foreign currency net investments (107,193) 4,914 _________ _________ Total recognised gains relating to the year 349,533 358,706 ========= Prior year adjustment (64,846) _________ Total recognised gains since last Annual Report and Accounts 284,687 ========= Consolidated Balance Sheet Restated 31 December 31 December 2002 2001 £ £ FIXED ASSETS Goodwill 200,224 - Tangible assets 559,764 600,112 Investments - 60 _________ _________ 759,988 600,172 _________ _________ CURRENT ASSETS Stocks and work in progress 1,111,317 576,527 Debtors 1,869,807 1,725,631 Cash at bank and in hand 2,635,225 3,205,010 _________ _________ 5,616,349 5,507,168 CREDITORS: amounts falling due within one year 1,094,915 891,031 _________ _________ NET CURRENT ASSETS 4,521,434 4,616,137 _________ _________ TOTAL ASSETS LESS CURRENT LIABILITIES 5,281,422 5,216,309 Provision for liabilities and charges 34,876 64,846 _________ _________ NET ASSETS 5,246,546 5,151,463 ========= ========= CAPITAL AND RESERVES Called up share capital 727,000 727,000 Share premium account 3,405,817 3,405,817 Capital redemption reserve 256,976 256,976 Profit & loss account 856,753 761,670 _________ _________ EQUITY SHAREHOLDERS' FUNDS 5,246,546 5,151,463 ========= ========= The Financial Statements were approved by the Board of Directors on 24 February 2003 M. Collins Chairman G.A. Fawcett Managing Director Consolidated Cash Flow Statement 2002 2001 £ £ Net cash inflow from operating activities 578,644 1,607,770 Returns on investments and servicing of finance: Interest received 78,716 99,492 Interest paid - finance lease interest - (2,951) Net cash inflow from returns on investments and servicing of finance 78,716 96,541 Taxation: UK Corporation Tax (64,258) (189,800) Capital expenditure and financial investment: Payments to acquire tangible fixed assets (106,676) (115,303) Acquisitions and disposals: Purchase of subsidiary undertakings (1,194,333) - Net bank balances acquired with subsidiary undertakings 197,444 - Net cash outflow from acquisitions and disposals (996,889) - Equity dividends paid - (363,500) Financing: Capital element on hire purchase and finance leases - (22,971) __________ __________ (Decrease)/Increase in cash (510,463) 1,012,737 ========== ========== NOTES 1. The results for the year ended 31 December 2002 are abridged from the Financial Statements for the year, which contain an unqualified audit report and will be filed with the Registrar of Companies. 2. The consolidated Financial Statements have been prepared on a basis consistent with the Financial Statements for the year ended 31 December 2001 and the Company has adopted FRS 19 (Deferred Tax). 3. The calculation of earnings per share is based on the weighted average number of Ordinary Shares in issue of 72,700,012 (2001 - 72,700,012), and on the profit after tax of £456,726 (2001 - Profit:£353,792 as re-stated). Fully diluted earnings per share (assuming full exercise of the options granted under the Share Option Scheme) is not materially different from the figures shown. Copies of the Annual report will be sent to Shareholders and will also be available from the Company's Registered Office: C/O MSP Secretaries, 22 Melton Street, London, NW1 2BW This information is provided by RNS The company news service from the London Stock Exchange

Companies

Concurrent Technologies (CNC)
UK 100
FTSE quotes by TradingView

Latest directors dealings

All directors dealings today