Concurrent Technologies – yesterday’s Interims saw various analysts increasing their Target Prices with the Highest at 385p, shares now 280p

Mark Watson-Mitchell - 08.09.2026

Last night, after an almost trebled daily volume was recorded, the shares of Concurrent Technologies (LON:CNC) closed up 15p at 280p.

Having touched 285p at one stage, that was over 52% higher since my feature on the group, on Thursday, 9^th April, this year, when they were trading a clear 100p lower in price.

The £243.5m-capitalised supplier to the defence, aerospace, telecoms and medical sectors, received a good market reception to the announcement of its Interim Results to end-June.

The rapidly increasing first-half Order Book is expected to be boosted significantly in the six months to end-December.

Despite its very high price-to-earnings ratio, some 46 times historic, I take the view that this little group is really on the cusp of pumping up its bottom line.

So, hold very tight!

The Business

The Colchester-based business develops and manufactures high-end embedded Plug-In Cards and Systems for use in a wide range of high-performance, long-life cycle applications within the telecommunications, defence, security, telemetry, scientific and aerospace markets, including applications within extremely harsh environments.

The processor products feature Intel® processors, including the latest generation embedded Intel® Core™ processors, Intel® Xeon® and Intel Atom™ processors. 

The products, which are sold world-wide, are designed to be compliant with industry specifications and support many of today's leading embedded Operating Systems. 

The group has UK centres located in Theale (design) and Colchester (manufacturing), together with sites in the US at Woburn MA and Los Angeles.

Interim Results

The group reported a strong first half for 2026, with revenue increasing 10% to £23.2m and profit before tax rising 19% to £3.2m, driven by significant order momentum which saw order intake surge 110% to £46.9m.

The company's cash position strengthened by 24% to £9.7m.

The business is experiencing continued demand across its key markets, with the Systems division achieving profitability for the first time.

The company is confident in exceeding market expectations for the full year 2026, anticipating revenue to be materially ahead and profit to be ahead of forecasts.

Management Comment

CEO Miles Adcock stated that: 

"We have delivered another record first half, reflecting the continued execution of our strategy and the strength of demand for our high-performance computing solutions.

For several years we have focussed on developing deep and long-term relationships with customers, underpinned by early to market products that get designed into our customer's programmes.

This gives us long term revenue visibility, with the success of this approach reflected in our order intake.

Year to date, order intake has exceeded £68m, with a further four months of the year still to go. 

The progress of our Systems business is particularly encouraging, which delivered a profitable first half and I anticipate strong year on year progress in all aspects.

The acquisition of Phillips Aerospace in September 2023 and our subsequent investment therein was a catalyst for our start-up Systems business, and I now consider that fully mobilised.

Our strategic focus is on organic and inorganic capability expansion as we service increasingly complex mission-critical applications for our customers.

Timing of orders can vary, and operationally we anticipate an exceptionally busy fourth quarter due to most of our orders being received towards the end of the first half.

This highlights the importance and timeliness of our capacity expansion in Colchester.

We have entered the second half with a significant back log, opportunity pipeline momentum and, therefore, the Board is confident in delivering a financial performance ahead of FY26 market expectations."

The Equity

There are some 86.99m shares in issue.

The larger holders include Charles Schwab Investment Management, Inc. (10.85%), Hargreaves Lansdown Fund Managers Ltd. (7.42%), Interactive Investor Services Ltd.

(6.54%), Premier Fund Managers Ltd. (4.70%), EFG Private Bank Ltd. (4.44%), Lombard Odier Asset Management (Europe) Ltd. (4.21%), Rathbones Investment Management Ltd. (3.77%), Canaccord Genuity Wealth Ltd. (3.34%), KW Investment Management Ltd. (2.33%), and Gresham House Asset Management Ltd. (Investment Management) (1.59%).

Broker Views

In so far as the Board is aware, as at Sunday, 6^th September, based on published analyst forecasts, consensus market expectations for FY26 were for revenues of £52m and profit before tax of £8m.

Five firms cover the group; the analysts from each rate the shares as a Buy.

The Average Target Price is now 317p, the Lowest TP is 270p and the Highest is 385p.

With a Buy note out, analyst Ian McInally, at Cavendish Capital Markets, reacted very positively to yesterday’s results by increasing by 21% his Target Price for the group’s shares, from 256p to 311p.

For the current year to end-December, he is looking for £56.1m (£45.9m) in group revenues, with adjusted pre-tax profits of £8.5m (£6.9m), lifting earnings to 7.2p (6.0p) and paying out a dividend of 1.3p (1.2p) per share.

For the 2027 year, his estimates are £64.8m sales, £11.1m profits, 9.3p earnings and a 1.4p dividend.

Jumping into his 2028 predictions, the analyst looks for £70.9m turnover, £11.9m profit, 10.1p per share in earnings and a 1.5p dividend.

Over at Equity Development, in initiating coverage, analysts Mike Jeremy and Andy Edmond have a 328p ‘fair value’ on the group’s shares, equating to a FY28 multiple of 18.5x, which compares favourably to the current average of defence peers and of direct competitors.

Noting that the group is capitalising on a material growth opportunity, they also state that:

“At the time of reporting, the group stands with an order book of over £68m, with continued growth momentum anticipating ‘an exceptionally busy fourth quarter.

We expect H2 (adj.) EBIT c.63% above H1 (vs H2 25: 48% above).” 

For 2026, they see £57.0m sales, £8.42m profits, and 7.52p earnings per share.

The 2027 estimate is £65.0m sales, £10.75m profit, with 9.78p earnings.

Their 2028 figures suggest £70.0m revenue, £12.00m profit and 10.71p of earnings per share.

Berenberg now has a Buy out on the group’s shares with a 320p TP.

My View

The Interims were impressive, as was the market reaction, with the shares closing at 280p - making a clear 35p gain since my Profile on the group last Wednesday, then at 245p.

Do I consider that the group’s shares will continue to move higher?

Yes, indeed I do, the progression of this little group to date has been perfect, not too much too fast and without overplaying its value.

There is so much more to come yet, so if you have already bought then just hold very tight.

(Profile 09.04.26 @ 192p set a Target Price of 235p*)

(Profile 29.05.26 @ 266p set a Target Price of 300p)