Concurrent Technologies reported record first-half results and said it now expects to beat full-year expectations after its order intake more than doubled.
The AIM-listed maker of high-performance computing products and systems said revenue rose 10% to £23.2m in the six months to 30 June, with pre-tax profit up 19% to £3.2m and EBITDA up 20%.
Both its Products and Systems arms performed well, with its Systems business turning a profit for the half as its gross margin improved to 26.3% from 13.3%.
Concurrent Technologies shares were around 4% higher at the time of writing.
“The progress of our Systems business is particularly encouraging, which delivered a profitable first half and I anticipate strong year on year progress in all aspects,” explained Miles Adcock, CEO of Concurrent Technologies.
“The acquisition of Phillips Aerospace in September 2023 and our subsequent investment therein was a catalyst for our start-up Systems business, and I now consider that fully mobilised. Our strategic focus is on organic and inorganic capability expansion as we service increasingly complex mission-critical applications for our customers.”
Order intake was strong, jumping 110% to £46.9m, already matching the total for the whole of last year, helped by a record contract win. The company also secured design wins with an estimated lifetime value of around £129m, and ended the period with cash of £9.7m.
Concurrent has doubled capacity at its Colchester site to meet growing demand, and moved to secure supplies of key components such as memory chips through to the end of 2027 amid continuing pressures in the electronics supply chain.
On the back of the record order book, the company said it now expects full-year revenue to come in materially ahead of market expectations.