Concurrent Technologies plc (LON:CNC) was discussed by Gervais Williams, Co-Fund Manager of Diverse Income Trust plc (LON:DIVI) in an exclusive interview with DirectorsTalk.
DirectorsTalk: Another company that we noticed reporting a record year in their trading update a few days ago is Concurrent Technologies. It’s seen strong share price growth through 2024 but what stood out for you? Can they continue their growth story?
Gervais Williams commented:
This is principally a defence company, it does have other sales, but it’s principally defence, and as we know, most governments, unfortunately, are going to be increasing defence expenses going forward.
They’ve got a very strong sales channel through the US in particular, but into Europe and other places. What we’ve seen really is actually some of their ongoing contracts have been extended, they’ve got new contracts, and a lot of these contracts are quite long term. We’ve seen revenue growth running at about 25%, according to their trading statement.
Again, this is an interesting market cap, because as you go through £100 million market cap, as you go through £150 million, £200 million market cap, you tend to bring in new investors. That allows the actual share price not just to form, but actually the valuation to start performing.
So, this is a company around £140 million market cap in a sector, which we think is going to be pretty attractive for new investors, and so again, we can see the share price hopefully kicking on and not just outperforming last year but continuing to outperform going forward.
Concurrent Technologies plc deliver mission-critical embedded computing solutions to operate flawlessly in even the harshest environments in various industries including defence, aerospace and communication.
