In a recent trading update, erstwhile Company Profile pick Concurrent Technologies flagged up ‘encouraging’ trading for the first half to June.

Concurrent is guided by managing director Glen Fawcett and makes high-end ‘embedded’ computer products for use in sectors such as defence and telecommunications, as well as transportation, where industry specifications are often stringent and where its rugged, robust products can be used in harsh conditions. It boasts healthy cash reserves and no borrowings.

During the first half, the company continued to win new customers while sustaining its strong margins. Further highlights included new product launches, strengthening the company’s competitive position, as well as the establishment of a facility in India, where sales requests have been building.

This new facility will not only assist with the design of products, based on the latest processor technologies from Intel, it should also help Concurrent to expand globally. Concurrent has also fortified its management team, through senior appointments in both the US and India.

In March, Concurrent cheered investors with strong results for calendar 2007 showing pre-tax profits increasing from £2.29m to £2.43m, despite lower turnover of £10.6m (2006: £12.5m), with Concurrent enjoying a markedly strong second-half recovery following a slower-than-expected first half, with gross margins expanding to 49.4% (2006: 46.6%). Moreover, the company closed the financial year with £4.8m cash and from earnings of 2.62p (2006: 2.42p) the total dividend was lifted to 1.2p (2006: 1p).

Recommended by Growth Company Investor at 30.25p in 2006, the shares, now 32p, trading on a historic earnings multiple of 12 times and with a yield of 3.75%, remain well worth holding for both income and growth.

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Concurrent Technologies	AIM	£26.5m	37.00p	0.00p
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