Market's view on Concurrent Technologies
Published on April 2024
- A bullish outlook is expected next week, with the order book and pipeline anticipated to be robust.
- The defence sector constitutes 85% of the turnover, with a 50% gross margin which might increase due to falling component costs and normalising supply chains.
- A recent extension contract with a US defence company has been highlighted, with presentation and results expected in early May.
- Two new positions have been filled: Head of Product Marketing in the USA and Product Marketing Manager in the UK, both considered high-quality hires.
- Record revenue of £30 million was noted, with profit at £3.5 million due to significant capital investments aimed at future growth.
- Concerns were raised about a sharp decline in share price despite efforts to raise it previously.
- Discussions involved the CEO’s strategy of aggressive acquisition and investment, with some concerns about the potential use of a debt facility.
- A positive outlook was shared on a podcast with the CEO, highlighting plans for dividends based on yearly profits and strong long-term demand expected to drive new business by 2026/27.
- Mention was made of the company’s possible susceptibility to a takeover in the current geopolitical climate, with defence spending expected to rise.
- There was a suggestion that the company’s prominence is rising in the industry, which might lead to a significant acquisition offer.