Concurrent Technologies, the maker of high-end embedded computer boards for applications in the defence and telecommunications markets, is worthy of consideration. Fronted by managing director Glen Fawcett, the company designs, builds and supplies products that are able to withstand extreme temperatures, and are integrated into a variety of applications ranging from fighter planes, to MRI scanners to cellular base stations.

Calendar 2005 numbers revealed marked increases in turnover and profits in improved markets, with sales lifted 51% to almost £10.7m and headline pre-tax profits (adding back exceptional items and goodwill) rocketing 577% to £1.45m. The final dividend doubled to 0.5p (increasing the total for the year to 0.75p). ‘Since listing in 1996, we’ve paid out £2.88m in dividends, which isn’t bad for an AIM company,’ reasons Fawcett.

During the year, gross margins edged up from 43% to 46%, helped by the product mix which included a greater proportion of more rugged and temperature-resistant boards, as well as the strengthened US dollar. Last year, the biggest sectors for Concurrent were defence and communications, together making up over 80% of sales. ‘Defence in the US was big for us on the back of the George Bush effect,’ commented Fawcett.

Concurrent also closed the year with £4m cash and no borrowings, and an acquisitive move in the US could be on the cards iin the not-too-distant future. For 2006, house broker Bell Lawrie has upgraded its pre-tax profit forecast to £1.9m, from sales of £14.3m, giving earnings of 2.1p. That places the shares on a forward p/e of 13.3, with a 3.6% yield for next year.