Sparks

Concurrent’s H125 results confirmed revenue growth of 26% y-o-y to £21.1m, gross profit growth of 26% to £10.7m (50.7% margin), EBITDA growth of 21% to £4.0m and EPS growth of 4%. Order intake was up 25% to £22.3m, despite delays in US defence orders due to delayed budget approval.  Product revenue was 10% higher at £17.9m while Systems revenue was up 540% to £3.2m. The Systems business is still loss-making but management expects it to break-even in FY25.  Cash at the end of H125 was £7.8m, down 12% y-o-y reflecting high working capital outflows to fund growth. Designs won in H125 have an estimated lifetime value of £90m and post period end, the company won a £4.0m contract to supply VME computers to a prominent prime contractor. R&D is driving new product introductions, with the Kratos plug-in card, built on Intel’s 6516P-B processor, launched in H1 and Bragi, the first NVIDIA graphics card, and Apollo, a compact, rugged and powerful computer system, launched post period end. The board is confident of delivering a financial performance ahead of FY25 market expectations, which currently forecast revenue of £43m and PBT of £6m.