Concurrent Technologies (CNC) H1 2024 earnings summary

Executive summary

• Achieved record H1 2024 financial performance, with revenue up 39% year-over-year to £16.8m, EBITDA up 57%, and profit before tax more than doubling to £2.3m compared to H1 2023.

• Secured eight substantial design wins globally, matching the total for all of FY23, including the largest contract in company history at $6m with a US Defence & Aerospace prime contractor.

• Continued investment in people, operations, and capacity, including strategic transformation into Products and Systems divisions and successful integration of Phillips Aerospace.

Financial highlights

• Revenue rose 39% year-over-year to £16.8m (H1 2023: £12.1m).

• EBITDA increased 57% to £3.3m (H1 2023: £2.1m); EBITDA margin improved to 19%.

• Gross profit up 42% to £8.5m (H1 2023: £6.0m); gross margin improved by 1.4 points to 50.8%.

• Profit before tax reached £2.3m, more than double H1 2023 (£1.0m); PBT margin at 13.6%.

• Earnings per share rose to 2.68p (H1 2023: 1.54p); diluted EPS at 2.55p.

• Order intake reached £17.8m, up from £14.5m in H1 2023; backlog remains strong at approximately £24.4m.

• Closing cash at £8.9m after a one-off £3.5m component purchase.

Outlook and guidance

• Entered H2 2024 with strong momentum, high demand, and a robust pipeline across Boards, Products, and Systems.

• Board confident in delivering FY24 results in line with market expectations.

• Major design wins expected to ramp up significantly from FY26 and deliver revenue over 7–10 years.

• Two new products launched and continued investment in people and operations.