Readers who followed our recent advice and held shares in ‘high-end’ embedded computer products play Concurrent - profiled by Growth Company Investor in May - have seen gradual price improvement. And a bullish pre-close update for 2006 from Concurrent suggests trading remains buoyant.

Chief executive Glen Fawcett boasted that preliminary results for the calendar year, out in March, ‘will portray a picture of continuing health’, based upon growing market presence. Concurrent’s products are supplied into sectors such as defence, telecommunications and transport, where they are integrated into applications requiring superior processing power and reliability.

Lancashire-native Fawcett insists demand for the group’s products has increased throughout the year, ‘with profits benefiting from higher margin conditions throughout the year’. And the numbers will ‘at least’ meet market forecasts, which strongly implies out-performance against the improved pre-tax profits of £2.1m (£1.45m) from £13.3m turnover in the market.

Forthcoming financials will build on a strong recent trading track record from Concurrent. Half-time figures to June revealed pre-tax profits almost doubled to £940,000 on 26 per cent growth at the top line to £5.8m, scored in some favourable markets. The half-time balance sheet was awash with £4.3m cash, and an improved dividend of 0.35p (0.25p) announced.

Concurrent, lately rewarding investors with share buy-backs at around 35-36p, a decent premium to our 30.25p recommendation price, recently launched a next-generation Advanced Mezzanine Card, which should help it capture new customers in the digital communications market. Trading on a 2006 earnings multiple of 18.8 â“ lower than fully listed and international peers â“ with a demonstrable ability to pay dividends, Concurrent remains a compelling stock. Hold tight.

Concurrent Technologies	AIM	£21.81m	30.00p	0.00p
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