Capitalising on a material growth opportunity

Concurrent Technologies has continued its excellent growth record of recent years by reporting a strong H1 26 performance with revenue up 10%YoY to £23.2m and EBITDA (adj.) of £4.8m +20%YoY, and a 20.7% margin (H1 25, 18.8%). Order intake stood out as particularly strong, up 1.1x YoY at £46.9m (H1 25, £22.3m), i.e. equivalent to the full year FY25.  

Furthermore, progress in converting design wins into production programmes indicates that the estimated lifetime value in the Products and Systems operations stands at £129m.  

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 to be c.63% above H1 (vs H2 25: 48% above).  

We initiate coverage with a Fair Value of 328p/share that equates to a FY28 multiple of 18.5x, which still compares favourably to the current average of defence peers and of direct competitors.