Final Results

Concurrent Technologies PLC
07 March 2005


CONCURRENT TECHNOLOGIES PLC

Preliminary results for the year ended 31 December 2004

Marked Growth In Sales Activity



Concurrent Technologies Plc, which manufactures high end embedded computer
products for critical applications in the defence, transportation,
communications and industrial markets, announces preliminary results for the
year to 31 December 2004.



Financial Highlights

•   Continued improvement in market conditions with H2 turnover up 38% on H1

•   Pre-tax profit maintained on the year at £215k (2003: 280k)

•   Year end net cash £2.2m

•   Gross margin improvement from 40% in H1 to 42% in H2

•   Final dividend of 0.25p making total 0.50p for the year



Operating Highlights

•   Announced today - opened an office in China

•   Increased range of products including 5 high margin, wide temperature
    boards launched

•   Investment in R&D equipment giving shorter development times, a key
    competitor differentiator

•   Sales and marketing activity remains at historical high levels,
    particularly in Defence and Comms sectors



Michael Collins, Chairman, commented:

'The recovery in our target markets including the communications and defence
sectors is now well established.  This is driven in particular by the increase
in expenditure in the USA on defence and homeland security projects, and the
upturn in design activity within new telecoms and internet security applications
in the USA and China.  As a result we have seen a marked uplift in enquiries and
orders for our embedded computer products to meet the growing demand for
computers which can cope with the relay of large parcels of data and with the
monitoring and testing of the quality and functionality of communications
systems.

'Our latest products help to ensure that we are positioned to take advantage of
this business upturn and our active participation in the Intel(R) Communications
Alliance has raised our profile within our industry sector.

'This year has started well and the level of new customer enquiries remains high
although it takes many months for these enquiries to be converted into firm
orders. The investment in our new production line will enable us to meet
increased demand for our products and we are optimistic about our prospects for
the year.'

                                                                    7 March 2005





Enquiries:
Concurrent Technologies
    Glen Fawcett, Managing Director    01206 752626

College Hill
    Nicholas Nelson                    020 7457 2020
    Corinna Dorward                    020 7457 2020





CHAIRMAN'S STATEMENT

Business Summary


Concurrent Technologies designs, builds and supplies high end embedded computer
products to the defence, communication, transportation and industrial markets.
These computer products are integrated into a variety of applications which
require very high levels of processing power and superior levels of reliability;
applications include military systems, communications, networking, medical
imaging, industrial automation and scientific research.

The main product range includes single and dual processor computer boards using
Intel(R) and FreescaleTM (formerly Motorola(R)) Central Processing Units (CPUs)
for the CompactPCI(R), VME and Multibus II architectures. Boards for use in
standard operating conditions and ruggedised versions for use in extreme
environments are produced. In addition to hardware design capability, our
engineering teams undertake a significant amount of software and firmware
development to provide interoperability between products, generate test software
both on-board and for production test purposes, and also provide support for
leading embedded and real-time operating systems.

The largest single market for our products is now defence, closely followed by
communications. Together these markets in 2004 accounted for 68% of our sales by
value.



Financial


Market conditions continued to improve through 2004, and we achieved a Group
turnover for the year of £7,086,044.  The consolidated pre-tax profit of the
Group for the year to 31 December 2004 was £214,580 (2003: £280,283). In the
second half of 2004 we made a consolidated pre-tax profit of £345,476 following
a loss in the first half of £130,896. The turnover in the second half of 2004
was £4.11m compared with £2.98m in the first half, an increase of 38%.

We ended the year with cash of £2,224,527 and no borrowings.


Review of 2004 Operations and Plans for 2005

Conditions in the specialised part of the single board computer market in which
we operate, having started to improve in 2003, continued to improve throughout
2004. However, the announcement of the end of life of a core component of our
most popular boards, set us back at the end of 2003 and for the first 6 months
of 2004. The Group has recovered from this as can be seen from the substantial
increase in turnover and pre-tax profit in the second half of the year.

In the early part of 2004 new VME and CompactPCI(R) boards driven by Intel(R)
Pentium(R) M processors were released and made available to customers and more
recently we have started to release extended temperature range versions; these
are especially suited to defence applications where boards often have to operate
in hostile environments. The new boards included the VP 315-RC which is a
ruggedised conduction cooled VME single board computer utilising an Intel(R)
Pentium(R) M processor and a low power chipset; this product has been
co-developed with Thales Computers under our joint development agreement with
them. This ruggedised product, like many of the Company's other products,
provides significant computing power whilst being thermally resourceful and can
operate at temperatures as low as -40oC or as high as 85oC. In September 2004
our Chicago design office released the VP 742/20X which has an in-built high
speed FreescaleTM PowerPC(R) processor on a VME architecture giving real time
responsiveness designed for use in defence, transportation, communications and
industrial applications. Also in September 2004 we announced support for the
LynxOS(R) hard real-time operating system designed to facilitate mission
critical tasks in transportation, defence, industrial and medical applications.
In October 2004 we released a new CompactPCI(R) board, the PP 332 which uses an
Intel(R) 1.8GHz Pentium(R) M processor and is especially aimed at the
telecommunications market. In 2004 we also ported the Linux(R) operating system
to our FreescaleTM PowerPC(R) based products.

Gross margins improved to over 42% for the full year having been just over 40%
in the first half helped by the continued popularity of our Multibus II boards
and early sales of extended temperature range products. We have controlled costs
well without reducing expenditure on R&D.

In 2004 we saw a clear upturn in our markets, particularly the defence and
communications markets of the USA. Most of our products are aimed at
applications for benign environments, but we are injecting increasing effort to
win projects in less benign environments as the margins which can be achieved in
these projects are generally higher. We have now extended our product range to
include several boards which can operate over temperatures ranging from -25
degreesC to +70degreesC and often -40degreesC to +85degreesC. As a result of our
joint development agreement with Thales Computers under which we designed a new
non-ruggedised board for them, they are now producing ruggedised versions of the
VP 315 which we include in our own product range. These boards will withstand
high vibration and high shock levels and operate in a conduction cooled
environment.

I said at the time of publication of our interim results last year that we had
never seen as much customer interest in our products as we were seeing then.
This is still the case. Sales and marketing activity is at a very high level.
The focus of our marketing has changed over the last three years. In 2001 the
largest part of our sales was to the medical sector. Since then defence and
communications projects have become increasingly important to us. We are being
invited to quote on larger projects than in the past. In the early part of 2004
we opened a sales office in Southern California, U.S.A. responding to the fact
that the U.S.A. had become our largest market.

The significant investment in new Computer Aided Design equipment we made in
2003 is now yielding productivity gains. The new equipment has already decreased
the time taken to design the layout of a board while simultaneously enabling us
to increase a board's functionality. Having already reduced the layout time
taken per board we achieved further time reductions during 2004. This is an
important advance as shorter development times reduce our time to market and
this is a key issue that differentiates us from most of our competitors.


Future Strategy

We have maintained our investment in design and development. We intend to
continue the expansion of the range of hardware we design and build, and to keep
increasing our investment in software and firmware engineering so as to make our
hardware operate with an ever increasing range of software products. Where
possible, we will be using low power devices such as Intel(R) Pentium(R) M
processors and their successors.

Our strategy is to continue to support and expand all three of our existing
embedded computer technology architectures. The Multibus II architecture is very
slowly coming towards the end of its life but as long as it continues to be
reasonably widely accepted by our customers we will continue to support it. We
see VME as having strong growth still, particularly for defence and industrial
applications. The CompactPCI(R) architecture was extended a few years ago to
include 64-bit/66MHz capability which gave this bus architecture more bandwidth
than VME or Multibus II and therefore made it particularly suitable for
communications applications, even though in recent times the performance of VME
has also been increased. We see this strategy continuing for some time but there
is a new architecture that is gaining market acceptance, Advanced
Telecommunications Computing Architecture (AdvancedTCA(R)), using very high
speed serial inter-connections based on switched fabric methods. Its larger
board size offers higher functionality, better cooling and an improved price/
performance ratio and is specifically targeted at telecommunications system
builders.

The ever increasing complexity of our boards and the increased sales activity
has brought with it increased pressure on our production and test facilities. We
are now installing another and much faster, production line suitable for
building larger production runs. We have recently placed an order for another
'pick and place' robotic machine for selecting and mounting microchip devices on
computer boards. We estimate that this will increase our throughput capacity at
this point of the production process by a factor of 4. We are also enhancing the
methods by which we test our products before shipment. To this end we have
recently purchased an automated optical inspection machine which electronically
examines the quality of the connections on our boards and this has already
helped to reduce our testing times.

Conscious that we have some excellent opportunities in China, where we have been
operating through distributors, we are establishing our own office there and
employing a business development manager.

We continue to look to enhance our capabilities to produce complete embedded
computer systems as well as the component boards which go into them, and to take
advantage of opportunities which come from customers who wish to downsize
in-house engineering staff to reduce fixed costs and who therefore are now
outsourcing more activities.


Dividend

We are very confident of the continued health of our business this year and have
therefore decided to recommend the payment of a final dividend of 0.25 pence per
share (making a total for the year including the interim dividend of 0.50 pence
per share). The total cost of this final dividend will amount to £181,750. The
ex-dividend date for the final dividend is 4 May 2005, the record date is 6 May
2005 and, subject to the shareholders' approval, payment will be made on 20 May
2005.


Outlook

The recovery in our target markets including the communications and defence
sectors is now well established.  This is driven in particular by the increase
in expenditure in the USA on defence and homeland security projects, and the
upturn in design activity within new telecoms and internet security applications
in the USA and China.  As a result we have seen a marked uplift in enquiries and
orders for our embedded computer products to meet the growing demand for
computers which can cope with the relay of large parcels of data and with the
monitoring and testing of the quality and functionality of communications
systems.

Our latest products help to ensure that we are positioned to take advantage of
this business upturn and our active participation in the Intel(R) Communications
Alliance has raised our profile within our industry sector.



This year has started well and the level of new customer enquiries remains high
although it takes many months for these enquiries to be converted into firm
orders. The investment in our new production line will enable us to meet
increased demand for our products and we are optimistic about our prospects for
the year.


Corporate Governance

As an AIM listed company Concurrent Technologies Plc is not obliged to comply
with the Combined Code on Corporate Governance. We do however acknowledge the
overall importance of the guidelines and apply as many of the principles therein
as are appropriate to a company of our size and nature. With this in mind we
appointed Clive Thomson as an additional non-executive director on 1 June 2004.



Annual General Meeting


The Annual General Meeting this year will be held on 29th April 2005.


Consolidated Profit and Loss Account


                                                                                Year to             Year to
                                                               Note         31 December         31 December
                                                                                   2004                2003
                                                                                      £                   £

Turnover                                                                      7,086,044           7,303,805

Cost of sales                                                                 4,052,759           4,202,524

Gross profit                                                                  3,033,285           3,101,281

Net operating expenses                                                        2,879,110           2,885,769

Operating profit before goodwill amortisation                                   154,175             215,512
                                                                                                    
Amortisation of goodwill                                                         25,088              28,018
                                                                                                     
Group operating profit                                                          129,087             187,494
                                                                                                    
Interest receivable                                                              85,493              92,789
                                                                                                     
Profit on ordinary activities before taxation                                   214,580             280,283
                                                                                                    
Taxation on profit on ordinary activities                                         1,177            (50,662)
                                                                                                   
Profit for the financial year                                                   213,403            330,945
                                                                                                   
Dividend                                                                        363,500            363,500
                                                                                                  
Retained loss for the year                                                    (150,097)            (32,555)
                                                                                                   

Basic and diluted earnings per share                               3              0.29p               0.46p



Statement of Total Recognised Gains and Losses

                                                                                      Year to                   Year to
                                                                                  31 December               31 December
                                                                                         2004                      2003
                                                                                            £                         £

Profit for the financial year                                                         213,403                   330,945
                                                                                                                
Currency translation differences on foreign currency net                             (81,641)                 (123,590)
investments                                                                                                   

Total recognised gains relating to the year                                           131,762                   207,355
                                                                                                                





Consolidated Balance Sheet
                                                                      31 December                          31 December
                                                                             2004                                 2003
                                                                                £                                    £
FIXED ASSETS
Goodwill                                                                  120,035                              154,612
Tangible assets                                                           474,382                              536,708

                                                                          594,417                              691,320
CURRENT ASSETS
Stocks and work in progress                                             1,147,782                              956,240
Debtors                                                                 2,190,865                            1,417,753
Cash at bank and in hand                                                2,224,527                            3,263,408

                                                                        5,563,174                            5,637,401

CREDITORS:
Amounts falling due within one year                                     1,298,928                            1,205,288

NET CURRENT ASSETS                                                      4,264,246                            4,432,113

TOTAL ASSETS LESS
CURRENT LIABILITIES                                                     4,858,663                            5,123,433

Provision for liabilities and charges                                           -                               33,032

NET ASSETS                                                              4,858,663                            5,090,401



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 and loss account                                                   468,870                              700,608

EQUITY SHAREHOLDERS' FUNDS                                              4,858,663                            5,090,401


The Financial Statements were approved by the Board of Directors on 4 March 2005
and signed on its behalf by:

M Collins                                               G A Fawcett
Chairman                                                Managing Director




Consolidated Cash Flow Statement
                                                                                      2004                        2003
                                                                                         £                           £

Net cash (outflow)/inflow from operating                                         (567,333)                   1,238,346
activities                                                                                                   

Returns on investments and servicing of finance:
Interest received                                                                   85,493                      92,789
                                                                                                                

Taxation                                                                          (20,112)                    (11,332)
                                                                                                              

Capital expenditure and financial investment:
Payments to acquire tangible fixed assets                                        (115,937)                   (176,627)
                                                                                                             

Equity dividends paid                                                            (363,500)                   (436,200)
                                                                                                             

(Decrease)/increase in cash                                                      (981,389)                     706,976
                                                                                                               




NOTES

1.       The financial information set out above does not constitute the
company's statutory accounts for the years ended 31 December 2004 or 2003, but
is derived from those accounts. Statutory accounts for 2003 have been delivered
to the Registrar of Companies and those for 2004 will be delivered following the
company's annual general meeting. The auditors have reported on those accounts;
their reports were unqualified and did not contain a statement under s237(2) or
(3) Companies Act 1985.

2.       The consolidated Financial Statements have been prepared on a basis
consistent with the Financial Statements for the year ended 31 December 2003.

3.       The calculation of earnings per share is based on the weighted average
number of Ordinary Shares in issue of 72,700,012 (2003 - 72,700,012), and on the
profit after tax of £213,403 (2003 - Profit: £330,945).  Fully diluted earnings
per share is the same as basic earnings per share.



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.


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