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Concurrent Technologies PLC said on Friday that its annual profit had fallen and its revenue was down due to constraints of component supplies. Concurrent, a designer and manufacturer of computer boards, said its pretax profit in 2022 dropped to £400,000 from £3.5 million the previous year. ‘2022 was a tough year for the global electronics sector due to severe constrains on components availability,’ said Chief Executive Officer Miles Adcock. Concurrent’s audit team identified that historically the company has over-capitalised on development costs, affecting in adjustments to capitalisation, amortization, and impairments, which has affected the net book value of the development assets on the balance sheet. Revenue was down 11% to £18.3 million from £20.5 million, whilst earnings before interest, tax, depreciation, and amortization was down 40% to £2.1 million from £3.5 million a year earlier. The company said this significantly lower performance was a result of constrains created by component supply challenges. Concurrent’s cash balance was also hit in the year, falling 62% to £4.5 million from £11.7 million; the company said this was a factor of reduced receipts in revenue. The company declared no dividend, from a 2.55 pence per share the year prior. ‘The board has agreed no dividend will be paid in 2022, due to the constrained performance of the business, with a low profit performance and a significantly reduced cash balance,’ said Concurrent. The company said it will maintain its policy of investing in research & development to expand its current range of advanced technology products. ‘Short term uncertainty in supply chains will disrupt production in 2023, but the medium-term outlook is strong, with some good progress milestones achieved in 2022,’ said Concurrent. Shares in Concurrent were up 0.9% at 56.99 pence in London on Friday morning. Copyright 2023 Alliance News Ltd. All Rights Reserved
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