‘High-end’ embedded computer products play Concurrent, Growth Company Investor’s Company Profile in May, clipped ahead on well-received interims to June revealing pre-tax profits almost doubled to £940,000 (a 93% leap), on turnover lifted by 26% to £5.8m, in favourable markets. The balance sheet was similarly robust, with the coffers flush with £4.3m cash and unfettered by borrowings, allowing a 0.35p (0.25p) dividend.

Managing director Glen Fawcett flagged up a strong start to 2006 and an order book standing at record levels, and commented that the introduction of new products based on the latest dual core processors should help Concurrent attract new business. Investors might recall that the company’s products are supplied to the defence, communication, transport and industrial markets, where they are integrated into applications that require superior levels of processing power and reliability. These range from military systems, to communications, and even to scientific research. Concurrent supplies boards that are used in standard operating conditions, as well ‘ruggedised’ versions for extreme conditions.

Today, the largest markets for its products are communications and defence, together accounting for 82% of sales by value during the half. Fawcett says investors might expect rising sales and profits over the coming years as volumes burgeon and the higher margin extended temperature range makes up a greater element of sales, and a more intensive sales assault in the US and China also augurs well.

Given bumper cash reserves, Concurrent might also look to buy back some of its own shares, which will enhance earnings for investors. Readers who bought on our advice at 30.25p should hold this growth and yield stock.