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Concurrent Technologies PLC on Wednesday said it expects 2022 revenue to be around 10% ahead of market expectations.
Shares in Concurrent Technologies were up 9.6% to 78.89 pence each in London on Wednesday morning.
The Essex, England-based designer and manufacturer of computer boards said this was alongside expecting pretax profit to be at least in line with market expectations.
It said this was achieved despite global supply chain shortages extending lead times throughout the year and delaying manufacturing, shipping and revenues.
Order intake for 2022 was reportedly in excess of £31 million, up 25% from a previous record of £25 million a year earlier.
Concurrent Technologies said it invested significant cash into holding increased inventory to react quickly once parts became available. To manage the recent surge in activity it implemented a double shift in its fourth quarter, resulting in record revenues in November and December.
Cash was reported to be down to a low of around £4 million at the end of 2022, in line with its declared investment strategy in research & development, systems and growth in its US and UK home markets.
It anticipates strong cash generation from the beginning of this year, with further cash generation as components become more available.
Looking ahead, forecasts for 2023 remain cautious despite observing some recovery in overall supply chains, as it said it is dependent on ‘some very specific components’ in many areas.
It did not declare a dividend for 2022, saying the cash would instead be used to fund further investment. It noted it remains committed to paying a dividend when future profits allow.
‘Whilst the prolonged components shortages have frustratingly slowed down revenue generation, it is clear that our strategy is yielding growth potential,’ said Chief Executive Officer Miles Adcock.
‘The fact that we have our highest ever backlog, following a record order intake, gives us real optimism for short to mid-term performance growth as supply chains improve.’
By Greg Rosenvinge, Alliance News reporter
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