Concurrent Technologies

Reliable computer products specialist Concurrent Technologies continues to launch lucrative products and grow sales, profits and dividends with minimal fanfare.

Steered by astute but modest managing director Glen Fawcett, the Colchester-based concern makes high performance single board computers used in critical applications across sectors such as defence, communications, transportation and aerospace. Because the products designed by Concurrent, recent recipient of a supplier performance award by US aerospace giant and long-term client Lockheed Martin, are rugged and employ the latest Intel processors, they are suited for incorporation in products used in the harshest of environments and have therefore remained in much demand throughout the downturn.

Last month, in an upbeat market missive covering calendar 2009 (results are out in April), Concurrent said it had enjoyed ‘a year of good trading and customer growth’, driven by its ongoing investment in new products. In another plus, Concurrent stated its cash position (£5.2m net in the coffers at the half-year) had remained strong.

During last year’s first half, increased sales to the defence sector helped swell the top line by 19% to £6.5m and drive gross margins up to 61% (2008: 55%). Encouragingly, the sale of products into the resilient defence business more than offset the deleterious effects of downturn on the telecoms and industrial segments and ongoing investment in products designed for telecoms and industrial applications has left Concurrent strongly positioned for economic upturn.

Market estimates have profits rising from a likely £3m to £3.3m in 2010, as turnover moves from £13.2m to £14.5m. On the 3.6p 2010 earnings estimate and with a 1.5p dividend likely, dependable-dividend-payer Concurrent, first highlighted by Growth Company Investor at 30.25p in 2006, remains a modestly priced must.