Concurrent Technologies Reports Record Financial Performance for FY2024
Why we think this is good
Concurrent Technologies has delivered a robust financial performance in FY2024, with significant growth across key metrics. Revenue increased by 27% to £40.3m, while profit before tax jumped 40% to £5.2m. The company's gross profit margin remained strong at 49.5%, and EBITDA grew by 30% to £7.8m. Cash generation was impressive, with the closing cash balance rising to £13.7m. The company secured 22 design wins, including 10 major ones, indicating strong future growth potential. However, there are some potential headwinds, particularly related to new US tariffs, which could impact future performance. The relatively high PE ratio of 24.7 suggests the market has high expectations for continued growth. While the overall picture is very positive, these factors temper the sentiment from being very good to good, as they introduce an element of caution for investors.
Key Points
- Revenue increased by 27% to £40.3m
- Profit before tax up 40% to £5.2m
- EBITDA grew by 30% to £7.8m
- Secured 22 design wins, including 10 'major wins'
- Largest-ever contract secured with a major US Defence & Aerospace contractor
- Cash balance increased to £13.7m from £11.1m
- Gross profit margin remained strong at 49.5%
- Earnings per share increased to 5.49p from 4.06p
- Final dividend proposed at 1.1 pence per Ordinary Share
- Potential challenges from new US tariff arrangements noted
Summary
Concurrent Technologies has delivered a stellar performance in FY2024, marking a transformative year for the company. Revenue surged by 27% to £40.3m, while profit before tax increased by 40% to £5.2m. The company's gross profit margin remained robust at 49.5%, and EBITDA grew by 30% to £7.8m. Notably, the company secured 22 design wins, including 10 'major wins', underpinning its long-term growth trajectory. The largest-ever contract to date, valued at $6 million with a major US Defence & Aerospace contractor, is set to contribute materially from 2027. The company's cash position strengthened, with closing net cash balance increasing to £13.7m from £11.1m in the previous year. Looking ahead, the company expects continued momentum across its Products and Systems business units, although it acknowledges potential challenges from evolving US tariff arrangements. The Board expects trading for the full year to be in line with market expectations.