Concurrent Technologies Reports Double-Digit Growth and Record Order Intake for FY25

FY25 performance at a glance – double-digit growth and record orders

Concurrent Technologies has posted another strong set of numbers for the year to 31 December 2025. Revenue, profit and cash all moved the right way, backed by a record order intake and visible multi-year programmes.

Metric	FY25	FY24	Change
Revenue	£45.9m	£40.3m	+14%
Gross profit	£24.5m	£20.0m	+22%
Profit before tax	£6.5m	£5.2m	+25%
EBITDA	£10.1m	£7.8m	+29%
Basic EPS	5.86p	5.49p	+7%
Order intake	£47.0m	£41.0m	+15%
Closing cash	£14.4m	£13.7m	+5%

Gross margin stepped up to 53.3% (FY24: 49.4%), helped by tight procurement and growing scale. That margin expansion is a key driver of the bigger jump in profit versus revenue.

Products vs Systems – what actually drove the year

Concurrent reports through two business units: Products (high-end embedded boards and related design projects) and Systems (integrated rugged systems and design services). Both contributed, but in different ways.

• Products – revenue up 6% to £40.5m (FY24: £38.2m) with profit up 8% to £6.8m. Products achieved a 57% gross margin (FY24: 50%), underscoring pricing power and supply-chain discipline.
• Systems – revenue of £5.4m, up 157% (FY24: £2.1m). The unit delivered a 16% gross margin (FY24: -7%) and a small operating loss of -£0.3m as it scales. Management expects breakeven or better in FY26 as order flow normalises.

Geographically, sales to the United States grew by 30% and now represent 52% of Group revenue. The UK also had a strong year, up 45% to £4.2m. The regional mix matters because defence programmes in the US and NATO markets are large, multi-year and specification heavy – exactly where Concurrent’s technology plays.

Order intake and design wins – why visibility is improving

Order intake hit a record £47.0m, a useful lead indicator for the next 12-24 months. More importantly, the company continued to rack up “design wins” – when a customer selects Concurrent’s technology for a platform or programme. These typically turn into purchase orders within two to three years and then generate revenue across seven to ten years.

• Design wins secured in FY25 have an estimated lifetime value of £145m.
• The Group is increasingly being selected for larger-scale contracts, including its largest Design Services contract to date at $6.2m with a major US defence prime.

That last point is strategic. Design Services embeds Concurrent earlier in programmes, deepens customer relationships and can lead to follow-on product revenues once platforms move to sustained production.

Technology leadership – launching first and moving fast

Concurrent leans hard into performance leadership in rugged, mission-critical computing – think harsh environments, high reliability and long lifecycles. A few notable launches and milestones from the year:

• Kratos – launched March 2025, more than doubling compute power versus the prior generation. Early access to Intel Xeon 6516P-B processors – secured six months ahead of general availability – helped Concurrent be first to market.
• Bragi – the first 3U VPX PIC to incorporate NVIDIA’s Blackwell architecture, developed with EIZO Rugged Solutions, aimed at data-intensive, AI-enabled defence applications.
• Apollo – a compact, rugged, rapidly deployable system, showcasing the Systems unit’s ability to integrate products into complete solutions.

Since year end, another five products have already been launched, including Kratos (32 Core) and a family based on Intel’s latest Core Ultra architecture – Eir, Hermes II, Magni II and Caelus – adding performance, security and lifecycle depth.

Quick jargon check:

• VPX/SOSA – open hardware standards used in defence to make systems modular and interoperable, reducing vendor lock-in and speeding upgrades.
• 3U VPX PIC – a small form-factor plug-in card that slides into a VPX chassis; ideal where size, weight and power constraints matter.

Partnerships also broadened the offer: EIZO (graphics), New Wave (FPGA products using AMD’s latest Xilinx chips) and Amphenol (switches). This ecosystem approach strengthens the Systems roadmap for 2026.

Margins, costs and currency – what’s under the bonnet

Gross margin improved to 53.3%, with Products at 57% and Systems at 16% as it transitions from custom projects toward production orders. The cost base rose to £18.0m (FY24: £14.8m) as the Group invested in people, R&D, and facilities, including a new state-of-the-art site in Los Angeles and expanded UK capability in Colchester.

USD volatility was a headwind in FY25, with sterling peaking at $1.38. Management is hedging major contracts and benefits from a partial natural hedge through USD supplier purchases. It will never remove FX risk entirely, but the approach is sensible.

Cash, dividend and capacity to grow

Closing cash increased to £14.4m and the Group established a rolling credit facility to add flexibility. That supports ongoing capex and the FY26 Colchester facility refresh. The Board has proposed a final dividend of 1.155p (FY24: 1.1p), payable on 3 July 2026 to shareholders on the register on 19 June 2026, subject to approval at the AGM on 10 June 2026.

Post year end, the company entered into a new 10-year lease (break at 7 years), signalling confidence in the growth path and providing the space to scale.

Outlook – guidance and what to watch in FY26

Management cites positive early momentum in FY26, supported by record order intake, a growing pipeline of design wins and expanded capacity. The Board is confident of delivering results in line with market expectations, which as at 10 April 2026 were revenue of £52.0m and profit before tax of £8.0m.

Several programmes are expected to transition into sustained production from FY26, which should help smooth Systems revenues and margins. The macro remains uncertain, but sector demand – especially defence and open-standard architectures – is supportive.

Investor take – why this update matters

Positives I like

• Strong, broad-based growth – revenue up 14% and PBT up 25% with margin expansion.
• Record £47.0m order intake and £145m lifetime value of FY25 design wins – real visibility.
• Technology leadership evidenced by early access to Intel Xeon 6516P-B and launch of Bragi with NVIDIA Blackwell.
• Systems moving in the right direction – 157% revenue growth and margin improvement, with breakeven targeted for FY26.
• Healthy balance sheet – £14.4m cash, dividend nudged up and capacity expansion funded.

Watch items

• US budget cadence and government shutdown impacts – these delayed orders in FY25.
• FX risk – USD/GBP swings can bite; hedging helps but cannot eliminate volatility.
• Execution in Systems – scaling from custom design work to higher-volume production is the next test.

Bottom line – building a bigger, higher-quality business

This is another disciplined year from Concurrent. The Products engine continues to hum, the Systems unit is gaining shape, and the company is winning places on long-life programmes that can underpin several years of growth. With a record order book, stronger margins and a solid cash position, the setup for FY26 – revenue of £52.0m and PBT of £8.0m – looks achievable if US defence ordering remains orderly.

For retail investors, the appeal here is a specialist UK engineering group with a growing international footprint, credible technology leadership, and increasing multi-year visibility. The near-term swing factor is Systems execution and US procurement timing. If those go to plan, FY26 could be another step up in scale and quality.