Concurrent Technologies (CNC) investor relations material

Executive summary

• Achieved record revenue of £45.9 million in FY 2025, with double-digit growth and strong order intake driven by both Systems and Products businesses.

• Profit before tax rose 25% year-over-year to £6.5 million, supported by robust operational cash flow and a closing cash balance of £14.4 million.

• Systems business revenue grew 160% to £7.3 million, nearing breakeven, while Products business maintained strong gross margins at 57%.

• Expanded U.S. presence with a new Los Angeles facility and doubled factory capacity in Colchester to support future growth.

• Announced CFO retirement and ongoing search for a successor, with strategic hires post year-end to strengthen executive management.

Financial highlights

• Revenue increased 14% to £45.9 million, with gross profit up 23% to £24.5 million and EBITDA rising 29% to £10.1 million (margin 22%).

• Gross profit margin increased to 53% from 50% last year, reflecting improved product mix and procurement efficiencies.

• Profit before tax up 25% to £6.5 million; EPS grew 7% to 5.86p, with order intake up 15% to £47.0 million.

• Strong operational cash generation (£7 million), with significant investment in R&D (£3.9 million capitalized).

• No debt on the balance sheet; closing cash position at £14.4 million, inventories at £11.7 million, trade receivables at £9.7 million.

Outlook and guidance

• Entered FY26 with strong momentum, a £24 million backlog, and a robust pipeline, though timing of large defense orders remains a key variable.

• Gross margin in Products may decline slightly due to mix and DRAM pricing, but Systems margins expected to improve as production increases.

• Systems business targeted to match Products business in size over five years, with potential for large-scale defense programs.

• Board confident of delivering FY26 results in line with market expectations.

• Continued investment in capacity, especially in Systems and Design Services.