Final Results

Concurrent Technologies PLC 5 March 2001 CONCURRENT TECHNOLOGIES PLC Preliminary Results for the year to 31st December 2000 Concurrent Technologies Plc, which designs, produces and markets single board computers known as Multibus II, CompactPCI(R) and VME, announces preliminary results for the year to 31st December 2000. * Pre-tax profit up 670% to £1.2 million * EPS 1.16p (1999: 0.23p) * Turnover up 149% to £8.3m * Return to the dividend list - 0.5p per share * Strong balance sheet * USA presence increased through sales force plus planned design capability * Several new products released in the year Michael Collins, Chairman, commented: ' The company continues to grow. Our sales in 2000 were substantially up on 1999 and we consider that the outlook remains good. 'Despite signs of slowdown in the telecommunications sector and in particular, in the move to the next generation of mobile telephony, we do not anticipate that this will have a material effect on our growth since we continue to open up new sales opportunities outside the sector, in, for example, medical defence and air traffic control. 'Our sales force in the USA has recently been expanded. There are so many new opportunities opening up for the Company in the USA that we believe that the best way of exploiting these will be to have a full design and sales operation there. Our major business plan for 2001 is to seek to establish, either by acquisition or by setting up a new operation, a design capability in the USA.' 5th March 2001 ENQUIRIES: Concurrent Technologies Plc Tel: 020 7457 2020 (today) Glen Fawcett, Managing Director Tel: 01206 752 626 College Hill Tel: 020 7457 2020 Michael Padley / Nicholas Nelson CHAIRMAN'S STATEMENT Financial I am pleased to report that the pre-tax profit for 2000 was £1,186,673 which was an increase of 670% over 1999. Turnover at £8,281,083 was up 149% as compared to 1999. Earnings per Ordinary Share of 1.16p rose sharply from 0.23p per share in 1999. The turnover in the second six months of the year was £4.6m which showed an improvement over the £3.6m achieved in each of the previous two six month periods. During the course of the year the Company raised additional share capital which produced a net addition to the balance sheet of £951,874. At the end of the year, Shareholders funds had increased to £ 4,851,045 (1999 £3,444,360). Dividends You will see that our cash balance at the year end had increased to £ 2,187,359. During the year, we have repaid our bank loan and reduced our other borrowings to a minimal level. In these circumstances therefore, we feel it is appropriate to recommend to shareholders that a final dividend of 0.5p per Ordinary Share be declared at the next Annual General Meeting and paid before the end of April. This dividend will cost the Company approximately £363,500. Outlook The Company continues to grow. Our sales in 2000 were substantially up on 1999 and we consider that the outlook remains good. It is fair to say that we have received some indications from our customers in the telecommunications sector of a slight slow down in the growth in their activities and, in particular, in the move to the next generation of mobile telephony. We do not however anticipate that this will have a material effect on our growth since we continue to open up new sales opportunities outside this sector in, for example, medical, defence and air traffic control. Thus, we may experience some reduction in growth of sales of hardware to the telecommunications sector, but we believe this will prove to be temporary and we anticipate a strong recovery in demand within a year from now. Our sales force in the USA has recently been expanded. There are so many new opportunities opening up for the Company in the USA that we believe that the best way of exploiting these will be to have a full design and sales operation there. Our major business plan for 2001 is to seek to establish, either by acquisition or by setting up a new operation, a design capability in the USA. We released several new products during 2000, including a Pentium(R) III CompactPCI(R) slot controller and we are currently working on a number of interesting projects including a VME processor board with one gigabyte of memory for release during the current year. Our core Multibus II product range still produces the majority of our sales but orders for VME and CompactPCI(R) products are starting to form a significant part of our turnover. The number of customers for VME and CompactPCI products has increased in line with expectations and we expect unit sales of these products to show good growth throughout 2001. Production After a detailed survey of the equipment available, the first orders for the new production equipment we need to install have been placed and we anticipate that our capital spend on this new equipment will be in the region of £ 500,000. Installation of this new equipment will significantly enhance our manufacturing capabilities. Employee Incentive Scheme In accordance with the power delegated by the Shareholders, the Directors have established a share option scheme for employees. This scheme is an Enterprise Management Incentive Scheme as contemplated by the Finance Act 2000 and this scheme is limited to a maximum of 15 employees. To date, options have been granted in respect of 1,139,536 Ordinary Shares to a total of 9 employees including the three Executive Directors. All the options issued to date are exercisable at a price of 43p per share. The options may be exercised between 14 December 2003 and 14 December 2010 and are conditional on the achievement of a minimum of 10% annual compound growth in earnings per share. Alternative Investment Market The shares of the Company are quoted on the Alternative Investment Market. Some Shareholders will be interested to learn that in the Finance Act 2000 certain changes were made to the legislation taxing capital gains. In particular the rules for calculating taper relief from capital gains tax were relaxed by treating shares in many AIM listed companies as business assets and thereby reducing the taxable gain on AIM shares for many individual Shareholders. Each individual Shareholder's position is different and Shareholders are encouraged to consult their own tax advisers before taking any action. Deferred Shares I can confirm that during the course of the year we completed the purchase of all the outstanding Deferred Shares in the capital of the Company at a total price of £257. This means that we only have one class of authorised and issued share capital namely Ordinary Shares of 1p each. Annual General Meeting The Annual General Meeting this year will be held on the 19th April 2001. Michael Collins Chairman Profit and Loss Account for the year ended 31 December 2000 Year to Year to 31 December 31 December 2000 1999 £ £ Turnover from Continuing Operations 8,281,083 5,547,633 Cost of sales 4,496,865 3,147,556 Gross Profit 3,784,218 2,400,077 Design, development and administrative expenses 2,643,908 2,244,228 Operating profit from continuing operations 1,140,310 155,849 Net Interest 46,363 21,216 Profit on ordinary activities before taxation 1,186,673 177,065 Taxation 348,856 15,229 Profit on ordinary activities after taxation 837,817 161,836 Dividends, proposed and payable:- Ordinary Shares (equity) 363,500 - Retained Profit for the Year 474,317 161,836 Earnings per Ordinary Share 1.16p 0.23p Consolidated Cash Flow Statement Year to Year to 31 31 December December 2000 1999 £ £ Net cash inflow/(outflow) from operating activities 114,973 (199,261) Returns on investments and servicing of finance: Interest received 66,579 88,699 Interest paid - finance lease interest (8,702) (26,538) Interest paid - bank interest (11,514) (40,945) Net cash inflow/(outflow) from returns on investments 43,363 21,216 and servicing of finance Taxation: UK Corporation Tax (145) - Capital expenditure and financial investment: Payments to acquire tangible fixed assets (61,007) (36,016) Sale of tangible fixed assets 75 9,894 Net cash (outflow) from capital expenditure and (60,932) (26,122) financial investment: Financing: Issue of Ordinary Share Capital 1,000,000 - Expenses incurred on issue of equity share capital (28,126) - Purchase of Deferred Shares (257) - Capital element on hire purchases and finance leases (65,381) (202,603) Borrowings repaid (399,705) (100,295) Net cash inflow/(outflow) from financing 506,531 (302,898) Increase/(Decrease) in cash 606,790 (507,065) Consolidated Balance Sheet Year to Year to 31 December 31 December 2000 1999 £ £ FIXED ASSETS Tangible assets 612,220 687,694 Investments 60 60 612,280 687,754 CURRENT ASSETS Stocks and work in progress 1,032,718 800,550 Debtors 2,898,250 2,071,789 Cash at bank and in hand 2,187,359 1,619,819 6,118,327 4,492,158 CREDITORS Amounts falling due within one year 1,879,562 1,474,463 NET CURRENT ASSETS 4,238,765 3,017,695 TOTAL ASSETS LESS CURRENT LIABILITIES 4,851,046 3,705,449 CREDITORS: Amounts falling due after more than one year - 261,089 NET ASSETS 4,851,045 3,444,360 CAPITAL AND RESERVES Called up share capital 727,000 963,976 Share Premium account 3,405,817 2,453,943 Capital redemption reserve 256,976 - Profit & Loss account 461,252 26,441 SHAREHOLDERS' FUNDS 4,851,045 3,444,360 NOTES 1. The results for the year ended 31 December 1999 are abridged from the Financial Statements for the year which contain an unqualified audit report and have been 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 1999. 3. On 22 February 2000 the Company issued 2,000,000 new Ordinary Shares of 1p each at 50p per share. 4. On the 22 September 2000 the Company purchased its Deferred Shares for a total consideration of £257. 5. The calculation of earnings per share is based on the weighted average number of Ordinary Shares in issue of 72,410,395 (1999 - 70,700,012), and on the profit after tax of £837,817 (1999 - Profit: £161,836) 6. 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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