| Valuation method | Value, £ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 110.00 | -58 |
| Intrinsic value (DCF) | 78.15 | -70 |
| Graham-Dodd Method | 0.56 | -100 |
| Graham Formula | 1.89 | -99 |
Concurrent Technologies Plc (LSE: CNC) is a UK-based leader in the design, development, and manufacture of high-performance single board computers (SBCs) for mission-critical applications. Serving industries such as defense, telecommunications, aerospace, and industrial automation, the company provides robust CPU boards and complementary accessory products like switches, storage, and I/O boards. With a strong presence in the UK, US, Malaysia, and Europe, Concurrent Technologies leverages its expertise in embedded computing to deliver reliable, high-performance solutions for system integrators and OEMs. Founded in 1985 and headquartered in Colchester, the company operates in the competitive computer hardware sector, focusing on ruggedized and long-lifecycle products that meet stringent industry standards. Its commitment to innovation and quality makes it a trusted partner in sectors where reliability and durability are paramount.
Concurrent Technologies presents a niche investment opportunity in the specialized computer hardware market, particularly for investors seeking exposure to defense and industrial technology. With a market cap of ~£172.7M, the company demonstrates stable financials, including £40.3M in revenue and £4.7M net income (FY 2024). Its low beta (0.837) suggests relative stability compared to broader tech stocks, while a dividend yield (~1.2% based on a 2p/share payout) adds income appeal. However, reliance on defense spending and long sales cycles in aerospace/industrial markets pose cyclical risks. Strong operating cash flow (£7.9M) and a healthy cash position (£13.7M) provide financial flexibility, but investors should monitor competitive pressures from larger global players.
Concurrent Technologies competes in the high-performance embedded computing market by focusing on ruggedized, long-lifecycle SBCs—a differentiator in defense and industrial sectors where reliability trumps cost sensitivity. Its competitive edge lies in deep domain expertise, UK/US defense certifications, and a reputation for low-latency, high-availability solutions. Unlike mass-market hardware vendors, CNC’s niche positioning allows premium pricing but limits scalability. The company’s R&D focus on Power Architecture and x86-based boards caters to legacy system upgrades, a strength in aerospace/defense where technology refresh cycles are slow. However, it faces pressure from larger rivals with broader product portfolios and global distribution. CNC’s small scale (~£40M revenue) restricts its ability to compete on price with commoditized SBC suppliers, but its specialization in harsh-environment applications provides defensible margins. Supply chain localization (UK manufacturing) is a strategic advantage for NATO-aligned defense contracts, though dependence on a few large customers (~30% revenue from top clients) creates concentration risk.