Concurrent Technologies Reports Record H1 2025 Performance with 26% Revenue Growth

Concurrent Technologies smashes H1 2025: revenue up 26% and orders up 25%

Concurrent Technologies has delivered a record first half, combining top-line growth with disciplined investment. Revenue climbed 26% to £21.1 million and profit before tax rose 17% to £2.7 million, despite a foreign exchange headwind of around £0.7 million as the US Dollar moved against Sterling.

The company makes rugged, high-performance embedded computer boards and systems used in demanding environments, with a growing focus on defence and aerospace. Today’s update shows momentum across both its core Products division and its newer Systems business, plus a strong pipeline for the second half.

H1 2025 headline numbers at a glance

Metric	H1 2025	H1 2024	Change
Revenue	£21.1m	£16.8m	+26%
Gross profit	£10.7m	£8.5m	+26%
EBITDA	£4.0m	£3.3m	+21%
Profit before tax	£2.7m	£2.3m	+17%
Earnings per share	2.78p	2.68p	+4%
Order intake	£22.3m	£17.8m	+25%
Closing cash	£7.8m	£8.9m	-12%

Order intake is the value of new orders signed in the period. It matters because it feeds future revenue. The £22.3 million intake was driven by the UK, Europe and Rest of World, with the US subdued temporarily due to a delayed defence budget approval. Management expects the US run-rate to pick up in H2.

What drove the growth: Products vs Systems

Products division keeps delivering

The Products unit – the heart of the business selling rugged plug-in cards (PICs) – posted organic growth:

• Revenue up 10% to £17.9 million (H1 2024: £16.3 million).
• Profit up 12.5% to £3.2 million (H1 2024: £2.8 million).

The star launch was Kratos, a next-generation PIC built on Intel’s latest Xeon 6516P-B processor. Concurrent had six months’ early access, letting it move quickly with what it calls one of the most powerful rugged PICs on the market. Post period, the company also introduced Bragi, its first NVIDIA-based graphics card through partner EIZO Rugged Solutions.

Systems division scales, still investing

The Systems unit – integrated, rugged computers tailored for demanding missions – posted £3.2 million of revenue (H1 2024: £0.5 million). The division recorded a £0.5 million operating loss, unchanged year-on-year, as the group builds capability and headcount (now 170 across the group, 22 in Systems).

Management is targeting break-even in FY25. A new Los Angeles area facility is due to open in H2 FY25 to support growth, and the newly launched Apollo system targets real-time processing at the edge – a good fit for defence and industrial use cases.

Design wins, VME strategy and why they matter

Design wins are customer selections of Concurrent products for long-lived programmes. They typically convert to purchase orders two to three years later and then run for seven to ten years. In H1 2025 the group secured record major design wins with an estimated lifetime value of £90 million – a strong indicator of future revenue.

The company is doubling down on the VME standard – a mature but still critical architecture in defence. Two notable contracts underline this:

• £3.4 million order for VME-based 6U boards from a long-standing European customer, with deliveries through to 2027.
• Post-period, the largest UK defence win to date at £4.0 million to supply rugged VME single board computers, with first deliveries to 2028 and additional orders expected into the 2030s.

Many competitors have exited VME. Concurrent’s commitment helps customers extend platform lifecycles and upgrade in place, which can be a sticky and profitable niche.

Cash, FX and funding: how robust is the financial position?

Closing cash was £7.8 million (H1 2024: £8.9 million; 31 December 2024: £13.7 million). The year-on-year dip reflects three deliberate moves:

• Trade debtors up £2.7 million to £8.6 million, after strong shipments late in the half.
• The first dividend of approximately £1 million.
• Inventory up around £2.2 million to support future deliveries (inventories £12.9 million).

Operating cash flow was an outflow of £2.2 million, driven by working capital build (receivables up, inventories up, payables down). To add flexibility, the group agreed a new £5 million revolving credit facility (RCF) with NatWest. An RCF is a flexible loan you can draw and repay as needed – handy when order timing and inventory requirements are lumpy.

Foreign exchange movements knocked about £0.7 million off profit due to US Dollar exposure. The company is working with partners to reduce FX volatility in future periods.

Operational upgrades that should compound

There’s a steady programme of operational improvements underway:

• New Microsoft Business Central ERP went live in August 2025 to streamline processes and decision-making.
• Factory efficiency improvements via new machinery, test equipment and power infrastructure.
• UK capacity expansion on track for the end of FY26.
• OTCQX listing in the US to broaden investor engagement alongside AIM.

These are unglamorous but important levers for margin, cash conversion and scale.

R&D discipline: investing without losing the plot

Product development remains front and centre, with £1.8 million capitalised R&D in H1 2025 (H1 2024: £1.8 million). Amortisation rose to about £1.0 million as a result of the increased development cadence in recent years. The key takeaway: investment is being maintained while EBITDA grew 21% to £4.0 million.

Outlook: ahead of expectations, but eyes on the US

The Board says it is confident of delivering a financial performance ahead of FY25 market expectations. As a marker, the company cites consensus for FY25 of £43 million revenue and £6 million profit before tax. With £21.1 million already delivered in H1, execution in H2 – including a US order run-rate recovery after the DoD budget delay – will be the swing factor.

The order book, the £90 million lifetime value of new design wins, and the early traction for Kratos and Apollo all support that confidence.

My take: strengths, watch-outs and what to look for next

What looks positive

• Balanced growth: strong Products performance plus rapid Systems scaling.
• High-quality demand signals: order intake up 25% and record long-term design wins.
• Strategic positioning: first-mover advantage with Intel’s latest processor and a differentiated VME commitment.
• Operational backbone: ERP go-live, factory upgrades and US facility build-out should aid throughput and gross margin over time.

What to watch

• US timing risk: H2 depends on US contracting picking up as expected.
• Cash conversion: inventories and receivables need to unwind; RCF provides cover, but working capital discipline will be key.
• Systems profitability: break-even in FY25 is the target – delivery and utilisation in H2 will need to step up.
• FX sensitivity: Dollar exposure can move the dial; mitigation plans will matter if volatility persists.

Key checkpoints for H2

• US order intake momentum and conversion of the sales pipeline.
• Progress on the LA Systems facility and UK capacity plans.
• Further VME programme wins and early customer adoption of Kratos and Apollo.
• Working capital trends – especially reduction in trade debtors and inventory turns.

Overall, this is a high-quality H1 from Concurrent Technologies. The company is investing sensibly, winning long-cycle programmes, and widening its technology lead. If US orders re-accelerate and Systems edges to break-even, the “ahead of expectations” line looks achievable.