The tough tech firm that’s firing on all cylinders...
AMERICA is worried. Top officials describe conditions in the Middle East as the most dangerous they have seen in at least 50 years, with troops under attack across the region, international vessels suffering repeated strikes in the Red Sea, and – last week – the death of three US service personnel in Jordan.
The White House is not alone in its concerns. War in Ukraine, hostilities in Gaza, increased aggression from China – they all point to a world that seems more febrile than it has been in decades.
And that puts politicians under pressure to respond to hard questions from the public. Do the armed forces have sufficient manpower? Are they supported by the latest equipment? Can they defend our country and our values?
Increasing numbers of people feel that this is not an environment to scrimp and save on defence. And, while debates persist here and overseas, the mood among governments is clear – the latest technology is essential to protect military personnel and others from hostile aggressors.
Colchester-based Concurrent Technologies is neatly positioned to support these efforts. Founded in
1985, the company specialises in computer products for harsh and rugged environments, where resilience and quality are imperative.
For many years, Concurrent worked primarily with telecoms businesses. Lately, however, the firm has shifted its focus towards defence, which now accounts for around 70 per cent of revenues.
Concurrent shares are 86p and should move considerably higher over the next few years, as chief executive Miles Adcock has ambitious plans for growth and a keen sense of how to deliver them. When Adcock arrived in 2021, Concurrent was in a bit of a state. Managers had been in place for decades, product development was slow and sales efforts were lacklustre. Adcock took the bull by the horns and set to work. decades of experience at defence firms including BAE Systems and QinetiQ, he recognised that the core business had plenty of potential but it needed more energy, more focus and more spirit.
Dozens of old-timers left but new recruits were brought in, many of them engineers and other specialists who had worked with Adcock in the past. A shift in the culture took root within months and today the company is firing on all cylinders. Last month, Adcock revealed that sales and profits for 2023 would be ahead of forecasts, with revenues on track to climb more than 60 per cent to £31 million. Earnings were hit in 2022 by a persistent shortage of crucial supplies but they rebounded last year and brokers now expect profits to soar from £400,000 to £3.6million.
The order pipeline is healthy, too. Concurrent supplies the Ministry of Defence, the US Department of Defense and armed forces in countries such as India, Malaysia and South Korea.
Bidding for new contracts is highly competitive, with several firms asked to submit ideas whenever a new piece of kit is needed. Military departments are not just looking for high-quality, cuttingedge ideas, they also need to know that winning bidders can deliver the goods on time and service them if anything goes amiss.
Rival contractors are often considWith
erably larger than Concurrent and the firm would normally win one or two bids a year. Last year, Adcock and his team won eight and they hope to do even better in 2024. Deals normally deliver a small initial increase in sales but momentum builds up over the years and each contract can last a decade or longer.
That gives Adcock grounds for optimism. He hopes to more than triple turnover to £100million in the next few years, with profits rising in sync. Highly skilled engineers have been recruited, sales staff are raring to go and the order book is top drawer.
Concurrent is benefiting too from changes to US Department of Defense procurement policies, which encourage competition from smaller players. Sales in the UK are on a roll, soaring five-fold to around £5 million last year, with more growth expected.
Adcock is also keen to add more products to Concurrent’s armoury, having acquired a US firm late last year that specialises in aerospace systems for military and commercial applications.
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