Business
Post-Close Trading Update
Post-Close Trading Update.
About this update from Concurrent Technologies Plc
[{"type":"text","content":"\n\nThis announcement contains inside information as stipulated under the UK version of the Market Abuse Regulation No 596/2014 which is part of English Law by virtue of the European (Withdrawal) Act 2018, as amended. On publication of this announcement via a Regulatory Information Service, this information is considered to be in the public domain.\n \n17 July 2023\nConcurrent Technologies Plc\n(the 'Company')\n \nPost-Close Trading Update\n \nConcurrent Technologies Plc (AIM: CNC), a world-leading specialist in the design and manufacture of high-end embedded computer systems and boards for critical applications, is pleased to announce a trading update for the six months to 30 June 2023 (\"H1 FY23\").\n \nBased on its unaudited management accounts for H1 FY23, the Company expects to report revenue of approximately £12M (H1 FY22: £7.4M) and profit before tax of approximately £1M (H1 FY22: £0.1M). This represents record first half revenues for the business and an increase of 60 per cent compared to the equivalent prior year period. The business is now operationally geared for a higher revenue outturn and is well positioned for future growth.\n \nOrder intake remains strong with H1 FY23 intake of £14.5M and an order backlog, as at 30 June 2023, of approximately £29M.\n \nGlobal supply chain shortages continued to suppress revenues in H1 FY23; however, the current position is very different to January 2023 and, whilst supply chains have not returned to historical norms, they are much more favourable and continue to improve. In recent weeks, the Company has taken significant deliveries of previously supply-restricted components and is seeing improved forecasts from suppliers for both schedules and quantities. The revenue profile across H1 FY23 reflects this, with monthly revenues improving throughout the period. Accordingly, cash management remained a focus for the Company during H1 FY23 and working capital employed in the business remained higher than would be typically required. It is expected that this position will begin to reduce across the second half of the year, with potentially stronger revenues, and the unwinding of the inventory holdings that have been established to date.\n \nThe Board believes that the Company is in line to deliver revenues slightly ahead of current market expecta...