26 August 2016

CONCURRENT TECHNOLOGIES PLC

(the'Company')

Interim Results for the six months ended 30 June 2016

Concurrent Technologies Plc (AIM: CNC), a world leading specialist in the design and manufacture of high-end embedded computer products, for critical applications in the defence, aerospace, transportation, telecommunications, scientific and industrial markets, announces interim results for the six months to 30 June 2016.

Financial Highlights:

· Turnover for period £9.0m (H1 2015: £9.6m)· Improvement in Gross Margins to 54.8% (H1 2015: 48.7%)· Profit before tax £1.5m (H1 2015: £1.6m)· Earnings per share for the period 2.12p (H1 2015: 2.06p)· Interim dividend declared 0.80p per share (H1 2015: 0.70p), an increase of 14.3%· Net cash, including cash deposits £8.2m (H1 2015: £5.7m); no borrowings

Operational Highlights:

· Exports increased to 81% of total revenues· Continued high level of investment in R&D· Introduction of development platforms

Michael Collins, Chairman, commented:

'After a strong performance in the first half of the year we have started the second half with a healthy order book and balance sheet. The outlook for the remainder of this year remains positive.'

Enquiries:

Concurrent Technologies Plc
Glen Fawcett, CEO

+44 (0)1206 752 626

Newgate (Financial PR)
Bob Huxford

Helena Bogle

+44 (0)20 7653 9850

Cenkos Securities plc (NOMAD)
Neil McDonald

Nick Tulloch/Beth McKiernan

+44 (0)131 220 9771
+44 (0)131 220 9772/8

CHAIRMAN'S STATEMENT

Financial Summary

I am very pleased to report an excellent start to 2016, continuing the strong performance seen at the end of 2015. EBITDA for the six months to 30 June 2016 was £2.2m (H1 2015: £2.3m). The unaudited profit before tax for the same period was £1.5m (H1 2015: £1.6m) with associated earnings per share of 2.12 pence (H1 2015: 2.06 pence). Group Revenues at £9.0m (H1 2015: £9.6m) were slightly below the exceptional performance of the first half of last year. Gross Margins were much improved at 54.8% (H1 2015: 48.7%).

The Group balance sheet is also stronger and our cash balances (including cash deposits) at 30 June 2016 were £8.2m (H1 2015: £5.7m), despite the increased dividend payment made during the period and R&D expenditure having been maintained at the same levels as the first half of 2015 (£1.6m).

Dividend

The Board has declared a first interim dividend of 0.80p per share (H1 2015: 0.70p) - an increase of 14.3%. The total cost of this dividend will amount to £580,948. The ex-dividend date for the interim dividend is 15 September 2016, the record date is 16 September 2016 and the payment date is 30 September 2016.

Review of Operations

Defence related revenues increased significantly during the first six months compared to the first half of 2015. Revenues were generated from all regions but predominantly from the US. Sales related to industrial applications have also improved during the period due mainly to demand from overseas customers. Exports have increased to 81% of total Group revenues (H1 2015: 52%)

We have continued to extend our VPX™ product range by offering development platforms which provide our customers with a quick start to assist them in the development of their systems.

The majority of the Company's world-wide transactions are conducted in sterling and in US dollars and so, following the recent sharp decline in the value of sterling against the US dollar, the Company conducted an additional review of its financial risk and trading plans. The review confirmed that the Company's exposure to exchange risk in the short to medium term is still mitigated to a large extent by the ability to offset receipts from sales against payments for purchases in the same currency. We can also expect to benefit from dollar denominated exports to the USA in the short term.

Future Plans

We will continue to expand our range by developing products for the VPX™, VME, AMC and CompactPCI bus architectures. Many versions of these products will be designed for use in harsh environments, particularly for military applications and we continue to recruit engineers in our design facilities in the UK, US and India, to enable the Company to develop more sophisticated ruggedized versions of our products.

Complementary software and firmware packages continue to be developed to provide high-speed data transfer, ease of integration and security which further enhance our product portfolio. We will maintain our strategy of designing more innovative products for complex, high technology, low to medium volume and high margin applications.

Outlook

After a strong performance in the first half of the year we have started the second half with a healthy order book and balance sheet. The outlook for the remainder of this year remains positive.

Michael Collins

Chairman

25 August 2016

All companies and product names are trademarks of their respective organisations.

CONDENSED CONSOLIDATED STATEMENT OF

COMPREHENSIVE INCOME

unauditedinterim results to 30 June 2016

Note

Six months ended

30/06/16

Six months ended

30/06/15

Year ended 31/12/15

£

£

£

CONTINUING OPERATIONS

Revenue

8,970,694

9,595,467

17,073,829

Cost of sales

4,054,125

4,923,619

8,437,564

Gross profit

4,916,569

4,671,848

8,636,265

Net operating expenses

3,397,753

3,078,775

5,945,140

Group operating profit

1,518,816

1,593,073

2,691,125

Finance income

26,336

17,224

42,292

Profit before tax

1,545,152

1,610,297

2,733,417

Tax

4,824

112,420

(21,351)

Profit for the period

1,540,328

1,497,877

2,754,768

Other Comprehensive Income

Exchange differences on translating foreign operations

223,385

79,535

62,918

Tax relating to components of other comprehensive income

-

-

-

Other Comprehensive Income for the period, net of tax

223,385

79,535

62,918

Total Comprehensive Income for the period

1,763,713

1,577,412

2,817,686

Profit for the period attributable to:

Equity holders of the parent

1,540,328

1,497,877

2,754,768

Total Comprehensive Income attributable to:

Equity holders of the parent

1,763,713

1,577,412

2,817,686

Earnings per share

Basic earnings per share

4

2.12p

2.06p

3.79p

Diluted earnings per share

4

2.12p

2.06p

3.79p

CONDENSED CONSOLIDATED BALANCE SHEET

unauditedinterim results to 30 June 2016

As at

As at

As at

30/06/16

30/06/15

31/12/15

ASSETS

£

£

£

Non-current assets

Property, plant and equipment

643,786

695,632

690,357

Intangible assets

6,397,135

6,026,976

6,307,044

Deferred tax assets

101,361

105,398

129,647

7,142,282

6,828,006

7,127,048

Current assets

Inventories

2,870,131

4,184,343

3,774,285

Trade and other receivables

2,642,486

3,095,560

2,520,573

Current tax assets

163,180

75,565

284,419

Other financial assets

-

-

1,000,000

Cash and cash equivalents

8,179,993

5,700,287

4,873,815

13,855,790

13,055,755

12,452,092

Total assets

20,998,072

19,883,761

19,580,140

LIABILITIES

Non-current liabilities

Deferred tax liabilities

1,280,077

1,283,929

1,305,237

Long term provisions

10,398

10,981

9,968

1,290,475

1,294,910

1,315,205

Current liabilities

Trade and other payables

2,938,487

3,488,379

2,411,524

Short term provisions

32,712

33,726

31,897

Current tax liabilities

6,735

3,072

-

2,977,934

3,525,177

2,443,421

Total liabilities

4,268,409

4,820,087

3,758,626

Net assets

16,729,663

15,063,674

15,821,514

EQUITY

Capital and reserves

Share capital

739,000

739,000

739,000

Share premium account

3,693,818

3,693,818

3,693,818

Capital redemption reserve

256,976

256,976

256,976

Cumulative translation reserve

302,026

95,258

78,641

Profit and loss account

11,737,843

10,278,622

11,053,079

Equity attributable to equity holders of the parent

16,729,663

15,063,674

15,821,514

Total equity

16,729,663

15,063,674

15,821,514

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

unauditedinterim results to 30 June 2016

Six months ended

30/06/16

Six months ended

30/06/15

Year ended 31/12/15

£

£

£

Cash flows from operating activities

Profit before tax for the period

1,545,152

1,610,297

2,733,417

Adjustments for:

Finance income

(26,336)

(17,224)

(42,292)

Depreciation

98,966

106,821

224,778

Amortisation

627,065

638,198

1,254,083

Impairment loss

499,509

505,727

690,201

Loss on disposal of property, plant and equipment

-

-

(1,334)

Share-based payment

1,139

9,787

26,192

Exchange differences

272,299

94,681

86,711

(Increase)/decrease in inventories

904,154

(1,484,685)

(1,074,627)

(Increase)/decrease in trade and other receivables

(121,913)

(305,134)

269,853

Increase/(decrease) in trade and other payables

528,208

991,326

(88,371)

Cash generated from operations

4,328,243

2,149,794

4,078,611

Tax received/(paid)

120,715

105,193

48,956

Net cash generated from operating activities

4,448,958

2,254,987

4,127,567

Cash flows from investing activities

Interest received

26,336

17,224

42,292

Cash placed on deposit

1,000,000

-

(1,000,000)

Purchases of property, plant and equipment (PPE)

(43,728)

(195,398)

(305,874)

Proceeds from sale of PPE

1,500

Purchases of intangible assets

(1,214,874)

(1,152,257)

(2,231,637)

Net cash used in investing activities

(232,266)

(1,330,431)

(3,493,719)

Cash flows from financing activities

Equity dividends paid

(870,942)

(834,904)

(1,343,141)

Sale/(Purchase) of treasury shares

19,800

-

(15,461)

Net cash used in financing activities

(851,142)

(834,904)

(1,358,602)

Effects of exchange rate changes on cash and cash equivalents

(59,372)

(13,870)

(25,936)

Net increase/(decrease) in cash

3,306,178

75,782

(750,690)

Cash at beginning of period

4,873,815

5,624,505

5,624,505

Cash at the end of the period

8,179,993

5,700,287

4,873,815

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

unauditedinterim results to 30 June 2016

Share

capital

Share

Premium

Capital

redemption

reserve

Cumulative

translation

reserve

Profit

and loss

account

Total

equity

£

£

£

£

£

£

Balance at 1 January 2015

739,000

3,693,818

256,976

15,723

9,595,122

14,300,639

Profit for the period

-

-

-

-

1,497,877

1,497,877

Exchange differences on translating foreign operations

-

-

-

79,535

-

79,535

Total recognised comprehensive income for the period

-

-

-

79,535

1,497,877

1,577,412

Share-based payment

-

-

-

-

9,787

9,787

Deferred tax on share based payment

-

-

-

-

10,740

10,740

Dividends paid

-

-

-

-

(834,904)

(834,904)

Balance at 30 June 2015

739,000

3,693,818

256,976

95,258

10,278,622

15,063,674

Profit for the period

-

-

-

-

1,256,891

1,256,891

Exchange differences on translating foreign operations

-

-

-

(16,617)

-

(16,617)

Total recognised comprehensive income for the period

-

-

-

(16,617)

1,256,891

1,240,274

Share-based payment

-

-

-

-

16,405

16,405

Deferred tax on share based payment

-

-

-

-

24,859

24,859

Dividends paid

-

-

-

-

(508,237)

(508,237)

Purchase of treasury shares

-

-

-

-

(15,461)

(15,461)

Balance at 31 December 2015

739,000

3,693,818

256,976

78,641

11,053,079

15,821,514

Profit for the period

-

-

-

-

1,540,328

1,540,328

Exchange differences on translating foreign operations

-

-

-

223,385

-

223,385

Total recognised comprehensive income for the period

-

-

-

223,385

1,540,328

1,763,713

Share-based payment

-

-

-

-

1,139

1,139

Deferred tax on share based payment

-

-

-

-

(5,561)

(5,561)

Dividends paid

-

-

-

-

(870,942)

(870,942)

Sale of treasury shares

-

-

-

-

19,800

19,800

Balance at 30 June 2016

739,000

3,693,818

256,976

302,026

11,737,843

16,729,663

NOTES TO THE INTERIM REPORT

1.

General information

The principal activity of Concurrent Technologies Plc and its subsidiaries ('the Group') is the design, development, manufacture and marketing of single board computers for system integrators and original equipment manufacturers.

Concurrent Technologies Plc ('the Company') is the Group's ultimate parent company. It is incorporated and domiciled in Great Britain. Concurrent Technologies Plc shares are listed on the Alternative Investment Market of the London Stock Exchange.

The Group's condensed consolidated interim financial statements are presented in pounds sterling (£), which is also the functional currency of the parent company.

These condensed consolidated interim financial statements, which are unaudited, have been approved for issue by the Board of Directors on 25 August 2016.

The information relating to the six months ended 30 June 2016 and 30 June 2015 is unaudited and does not constitute statutory accounts within the meaning of section 434 of the Companies Act 2006. The statutory accounts for the year ended 31 December 2015, prepared in accordance with IFRSs (International Financial Reporting Standards) as adopted by the European Union, have been reported on by the Group's auditors and delivered to the Registrar of Companies. The auditors' report was unqualified, did not draw attention to any matters by way of emphasis and did not contain a statement under section 498(2) or (3) of the Companies Act 2006.

2.

Summary of significant accounting policies

2.1

Basis of preparation

These condensed consolidated interim financial statements are for the six months ended 30 June 2016. They have been prepared in accordance with IAS 34 'Interim Financial Reporting'. They do not include all of the information required for full annual financial statements, and should be read in conjunction with the consolidated financial statements of the Group for the year ended 31 December 2015, which have been prepared in accordance with adopted IFRSs.

The accounting policies applied and methods of computation are consistent with those of the annual financial statements for the year ended 31 December 2015, as described in those financial statements. The accounting policies have been consistently applied to all the periods presented.

There are no new IFRSs or IFRIC interpretations that are effective for the first time for the financial period beginning on or after 1 January 2016 that would be expected to have a material impact on the results or financial position of the Group.

2.2

Going Concern

The Directors are satisfied that the Group has sufficient resources to continue in operation for the foreseeable future, a period of not less than 12 months from the date of this report. Accordingly, they continue to adopt the going concern basis in preparing these condensed financial statements.

2.3

Taxation

Current tax expense is recognised in these condensed consolidated interim financial statements based on estimated effective tax rates for the full year.

3.

Segmental reporting

The Directors consider that the Group is engaged in a single segment of business, being design, manufacture and supply of high-end embedded computer products, and that therefore the Company has only a single operating segment. The key measure of performance used by the Board to assess the Group's performance is the Group's profit before tax, as calculated under IFRS, and therefore no reconciliation is required between the measure of profit or loss used by the Board and that contained in the condensed consolidated interim financial statements.

4.

Earnings per share

Basic earnings per share is calculated by dividing the profit attributable to ordinary equity holders for the period by the weighted average number of ordinary shares outstanding during the period.

Diluted earnings per share is calculated adjusting the weighted average number of ordinary shares outstanding to assume conversion of all contracted dilutive potential ordinary shares. The Company only has one category of dilutive potential ordinary shares, share options.

The inputs to the earnings per share calculation are shown below:

Six months ended

30/06/16

Six months ended

30/06/15

Year ended 31/12/15

£

£

£

Profit attributable to ordinary equity holders

1,540,328

1,497,877

2,754,768

Six months ended

30/06/16

Six months ended

30/06/15

Year ended 31/12/15

N

N

N

Weighted average number of ordinary

shares for basic earnings per share

72,604,009

72,600,490

72,594,150

Adjustment for share options

481

7,872

-

Weighted average number of ordinary shares for diluted earnings per share

72,604,490

72,608,362

72,594,150

5.

Post reporting date events

There were no materialevents subsequent to the end of the interim reporting period that have not been reflected in these interim financial statements.

6.

Shareholder Communication

A copy of this interim statement is available from the Company's Registered Office at 4 Gilberd Court, Newcomen Way, Colchester, Essex, CO4 9WN, UK and from the Company's website at www.cct.co.uk.

Concurrent Technologies plc published this content on 26 August 2016 and is solely responsible for the information contained herein.
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