24 March 2017

Concurrent Technologies Plc

Results for the year ended 31 December 2016

Concurrent Technologies Plc (AIM: CNC), a world leading specialist in the design and manufacture of high-end embedded computer boards for critical applications, announces results for the year to 31 December 2016.

Financial Highlights

· Turnover of £16.4m (2015: £17.1m)· Gross profit increased by 3.0% to £8.9m (2015: £8.6m)· Gross margin increased to 54.2% (2015: 50.6%)· EBITDA increased by 3.2% to £4.3m (2015: £4.2m)· Profit before Tax increased by 6.2% to £2.9m (2015: £2.7m)· EPS increased by 2.9% to 3.90 pence (2015: 3.79 pence)· Dividend increased by 10.5% to 2.10 pence per share for the year (2015: 1.90 pence)· Cash in business plus deposits increased by 32.3% to £7.8m (2015: £5.9m)

Operational Highlights

· Four new high performance embedded computers were released during 2016, two of which featured new generation Intel Xeon processors · All architectures for new applications and new customers include low power units and allow for practical upgrade paths for existing long life cycle customers · Released further sophisticated high bandwidth switching boards supplementing functionality of main products

Michael Collins, Chairman of Concurrent Technologies Plc, commented:

'We are currently witnessing numerous opportunities to introduce our highly innovative technology to new and existing customers. To best meet these opportunities our strategy is to continue to invest in R&D to ensure a constant expansion of our advanced product range.

We continue to look for acquisition options but there is plenty of scope for internal organic growth where we continue to see many opportunities to grow the business into new market areas without taking unacceptable risks.

Sales and new interest in our products and services arising this year have been encouraging and our current healthy order book gives us confidence in our performance for 2017.'

Annual General Meeting

The annual general meeting of Concurrent Technologies Plc will be held at the Company's offices at 4 GilberdCourt, Newcomen Way, Colchester, Essex, CO4 9WN, on 25 May 2017 at 2:30pm.

Enquiries:

Concurrent Technologies Plc
Glen Fawcett, CEO

+44 (0)1206 752 626

Newgate (Financial PR)
Bob Huxford

James Browne

+44 (0)207 653 9850

Cenkos Securities plc (NOMAD)
Neil McDonald

Nick Tulloch

Beth McKiernan

+44 (0)131 220 9771

+44 (0)131 220 9772

+44 (0)131 220 9778

Extracts from the Strategic Report

Review of Operations

The Group achieved excellent results in 2016, with sales of £16.42m (2015: £17.07m). The Revenue for 2015 included significant orders from one customer which as anticipated by the Board, were not repeated at such a high level in 2016.

Despite the fall in revenues, gross profit increased to £8.89m (2015: £8.64m). The gross margin for the year increased to 54.2% (2015: 50.6%).

Profit before tax was £2.90m (2015: £2.73m). Earnings per share were 3.90 pence (2015: 3.79 pence).

EBITDA (measured as Operating Profit plus Depreciation and Amortisation) for the Group in 2016 was £4.31m (2015: £4.17m).

The Total Comprehensive Income for the year was £3.25m which included £0.42m of income resulting from exchange differences on translating foreign operations. This substantially arose from a significant devaluation of sterling against other currencies in June 2016.

We continued to increase our investment in R&D from £3.05m in 2015 to £3.39m in 2016, of which £2.27m was capitalised (2015: £2.20m).

The Group continues to have no borrowings. We have again paid increased dividends during the year and our cash balances plus short to medium term cash deposits at the year-end improved to £7.78m (2015: £5.87m).

Operational Highlights

Four new high performance embedded computers were released during 2016. Two of these, featured the latest technology processors including the new generation Intel Xeon processors. As well as providing the latest high performance and low power units across all of our architectures for new applications and new customers, these computer boards also allow for practical upgrade paths for our existing long life cycle customers. In addition to these two main computer boards, we also released further sophisticated high bandwidth switching boards to supplement the functionality of our main products providing, for example, faster and easier network connectivity.

Future Plans

Our core business is resilient and there are many opportunities to introduce our highly innovative technology to new and existing customers.

We will continue our investment in R&D to ensure a constant expansion of our range of advanced technology products and thereby enhance our competitive position. Additional R&D engineers will be recruited in the UK, USA and India to design more products for complex, high technology, low to medium volume and high margin applications, along with producing versions targeted for use in harsh environments, including military applications.

The key to continued success is to expand our range of products, with a particular focus on the VPX bus architecture. In addition to boards and associated software we have recently started to provide development systems based on the VPX and MicroTCA architectures. These development systems will enable users to reduce their own product development times.

We continue to look for acquisition opportunities but there is plenty of scope for internal organic growth where we continue to see many opportunities to grow the business into new market areas without taking unacceptable risks.

Sales and new opportunities arising this year have been encouraging and our current healthy order book gives us confidence in our performance for the full year.

Dividend

The Board has declared a second interim dividend of 1.30 pence per share (2015: 1.20 pence) which when added to the first interim dividend of 0.80 pence per share (2015: 0.70 pence) will make a total of 2.10 pence per share for the year (2015: 1.90 pence). This is an increase of 10.5% on dividends paid for 2015. The total cost of this second interim dividend will amount to £945,340. As in previous years, the Directors do not intend to recommend a final dividend.

Annual General Meeting

The annual general meeting of Concurrent Technologies Plc will be held at the Company's offices at 4 GilberdCourt, Newcomen Way, Colchester, Essex, CO4 9WN, on 25 May 2017 at 2:30pm.

All trademarks, registered trademarks and trade names used in this announcement are the property of their respective owners.

Consolidated Statement of Comprehensive Income

Year to

Year to

31 December

31 December

2016

2015

CONTINUING OPERATIONS

£

£

Revenue

16,423,978

17,073,829

Cost of sales

7,529,867

8,437,564

Gross profit

8,894,111

8,636,265

Operating expenses

6,040,302

5,945,140

Group operating profit

2,853,809

2,691,125

Finance income

48,705

42,292

Profit before tax

2,902,514

2,733,417

Tax

72,609

(21,351)

Profit for the year

2,829,905

2,754,768

Other Comprehensive Income

Items that will be reclassified subsequently to profit or loss:

Exchange differences on translating foreign operations

415,966

62,918

Tax relating to components of other comprehensive income

-

-

Other Comprehensive Income for the year, net of tax

415,966

62,918

Total Comprehensive Income for the year

3,245,871

2,817,686

Profit for the period attributable to:

Equity holders of the parent

2,829,905

2,754,768

Total Comprehensive Income attributable to:

Equity holders of the parent

3,245,871

2,817,686

Earnings per share

Basic earnings per share

3.90p

3.79p

Diluted earnings per share

3.90p

3.79p

Consolidated Balance Sheet

As at

As at

31 December

31 December

2016

2015

£

£

ASSETS

Non-current assets

Property, plant and equipment

414,209

690,357

Intangible assets

6,846,520

6,307,044

Deferred tax assets

112,128

129,647

7,372,857

7,127,048

Current assets

Inventories

3,239,855

3,774,285

Trade and other receivables

3,327,629

2,520,573

Current tax assets

93,156

284,419

Other financial assets

1,000,000

1,000,000

Cash and cash equivalents

6,773,083

4,873,815

14,433,723

12,453,092

Total assets

21,806,580

19,580,140

LIABILITIES

Non-current liabilities

Deferred tax liabilities

1,291,468

1,305,237

Long term provisions

6,699

9,968

1,298,167

1,315,205

Current liabilities

Trade and other payables

2,810,655

2,411,524

Short term provisions

23,939

31,897

Current tax liabilities

-

-

2,834,594

2,443,421

Total liabilities

4,132,761

3,758,626

Net assets

17,673,819

15,821,514

EQUITY

Capital and reserves

Share capital

739,000

739,000

Share premium account

3,693,818

3,693,818

Capital redemption reserve

256,976

256,976

Cumulative translation reserve

494,607

78,641

Profit and loss account

12,489,418

11,053,079

Equity attributable to equity holders of the parent

17,673,819

15,821,514

Total equity

17,673,819

15,821,514

Consolidated Cash Flow Statement

Year to

Year to

31 December

31 December

2016

2015

£

£

Cash flows from operating activities

Profit before tax for the period

2,902,514

2,733,417

Adjustments for:

Finance income

(48,705)

(42,292)

Depreciation

196,370

224,778

Amortisation

1,254,826

1,254,083

Impairment loss

499,509

690,201

Loss/(profit) on disposal of property, plant and equipment (PPE)

233,840

(1,334)

Share-based payment

13,585

26,192

Exchange differences

76,461

86,711

Decrease/(increase) in inventories

534,430

(1,074,627)

(Increase)/decrease in trade and other receivables

(927,530)

269,853

Increase/(decrease) in trade and other payables

558,815

(88,371)

Cash generated from operations

5,294,115

4,078,611

Tax received

116,142

48,956

Net cash generated from operating activities

5,410,257

4,127,567

Cash flows from investing activities

Interest received

48,705

42,292

Cash released from/(placed) on deposit

-

(1,000,000)

Purchases of property, plant and equipment (PPE)

(138,181)

(305,874)

Proceeds from sale of PPE

-

1,500

Capitalisation of development costs and purchases of intangible assets

(2,290,889)

(2,231,637)

Net cash used in investing activities

(2,380,365)

(3,493,719)

Cash flows from financing activities

Equity dividends paid

(1,452,689)

(1,343,141)

Exercise of share options

51,800

-

Purchase of treasury shares

-

(15,461)

Net cash used in financing activities

(1,400,889)

(1,358,602)

Effects of exchange rate changes on cash and cash equivalents

270,265

(25,936)

Net increase/(decrease) in cash

1,899,268

(750,690)

Cash at beginning of period

4,873,815

5,624,505

Cash at the end of the period

6,773,083

4,873,815

Consolidated Statement of Changes in Equity

Capital

Cumulative

Profit

Share

Share

redemption

translation

and loss

Total

capital

premium

reserve

reserve

account

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

-

-

-

-

2,754,768

2,754,768

Exchange differences on translating foreign operations

-

-

-

62,918

-

62,918

Total comprehensive income for the period

-

-

-

62,918

2,754,768

2,817,686

Transactions with owners:

Share-based payment

-

-

-

-

26,192

26,192

Deferred tax on share based payment

-

-

-

-

35,599

35,599

Dividends paid

-

-

-

-

(1,343,141)

(1,343,141)

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

-

-

-

-

2,829,905

2,829,905

Exchange differences on translating foreign operations

-

-

-

415,966

-

415,966

Total comprehensive income for the period

-

-

-

415,966

2,829,905

3,245,871

Transactions with owners:

Share-based payment

-

-

-

-

13,585

13,585

Deferred tax on share based payment

-

-

-

-

(6,262)

(6,262)

Dividends paid

-

-

-

-

(1,452,689)

(1,452,689)

Transfer of treasury shares

-

-

-

-

51,800

51,800

Balance at 31 December 2016

739,000

3,693,818

256,976

494,607

12,489,418

17,673,819

NOTES

1. The Group financial statements consolidate those of the Company and its subsidiaries (together referred to as the 'Group'). The financial information set out in these preliminary results has been prepared in accordance with International Financial Reporting Standards ('IFRSs') as adopted by European Union. The accounting policies adopted in this results announcement have been consistently applied to all the years presented and are consistent with the policies used in the preparation of the statutory accounts for the period ended 31 December 2015. The consolidated financial information is presented in sterling (£), which is the company's functional and the Group's presentation currency.

2. The financial information set out above does not constitute the Group's statutory accounts for the years ended 31 December 2016 or 2015, but is derived from those accounts. Statutory accounts for 2015 have been delivered to the Registrar of Companies and those for 2016 will be delivered following the Annual General Meeting. The auditors have reported on those accounts; their reports were (i) unqualified, (ii) did not contain statements under section 498(2) or (3) of the Companies Act 2006 in respect of 2015 or 2016 and (iii) did not draw attention to any matters by way of emphasis.

3. The calculation of basic earnings per share is based on the weighted average number of Ordinary Shares in issue during 2016 of 72,635,976 (2015: 72,594,150) allowing for any adjustment made as a consequence of the Company having issued no Ordinary Shares during 2016 (2015: nil) and on the profit after tax for 2016 of £2,829,905 (2015: £2,754,768). The calculation of diluted earnings per share incorporates 2,457 Ordinary Shares (2015: nil) in respect of performance related employee share options. The profit after tax is the same as for basic earnings per share.

4. The annual general meeting of Concurrent Technologies Plc will be held at the Company's offices at 4 GilberdCourt, Newcomen Way, Colchester, Essex, CO4 9WN, on 25 May 2017 at 2:30pm.

Copies of the Annual Report will be sent to Shareholders and will also be available from the Company's Registered Office: 4, GilberdCourt, Newcomen Way, Colchester, Essex, CO4 9WN, UK, and on the Company's website: www.cct.co.uk.

Concurrent Technologies plc published this content on 24 March 2017 and is solely responsible for the information contained herein.
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