Concurrent Technologies (CNC) H1 2025 earnings summary

Executive summary

• Achieved record first-half revenue of £21.1 million, up 26% year-over-year, with EBITDA up 21% to £4.0m and profit before tax up 17% to £2.7m, driven by strong order intake and growth in Products and Systems units.

• Order intake reached a record £22.3 million, with design wins lifetime value of £90m and largest-ever UK defense contract secured.

• Systems business revenue surged to £3.2 million, up 562%, but remains loss-making and is targeting break-even by year-end.

• Focused on defense and aerospace, now accounting for 90% of revenue, with significant growth in the U.S. and Europe.

• Strong pipeline and design wins position the company for long-term growth, with major capacity expansions underway.

Financial highlights

• Gross profit margin held at 51% (H1 2025: 50.8%), with gross profit up 26% to £10.7m and operating profit at £2.7m.

• EBITDA margin at 19%; EPS rose 4% to 2.78p; shareholders' funds up 8% to £40.6m.

• Closing cash declined to £7.8 million, mainly due to inventory build, working capital, and dividend payments.

• Inventory increased to £12.9m to support future growth; net assets at £40.6m.

• Profit margin at 12.8%, slightly down from 13.7% in prior year.

Outlook and guidance

• Board and management expect to exceed FY25 market expectations for revenue and profit, with consensus at £43m revenue and £6m PBT.

• Market outlook projects revenue of £46m for 2025, £52m for 2026, £60m for 2027, and £66m for 2028.

• Systems business targeted to reach breakeven in 2025.

• Five-year internal plan aims to surpass £100 million in revenue.

• Significant revenue and profit increase anticipated from 2026 as design wins and capacity expansion take effect.