Concurrent Technologies CEO on the significance of a FTSE 250 contract win (LON:CNC)

Concurrent Technologies plc (LON:CNC) Chief Executive Officer Miles Adcock caught up with DirectorsTalk for an exclusive interview to discuss their new contract win with a FTSE 250 company.

Q1: Miles, this sounds like big news, can you explain for us what it is that Concurrent Technologies have actually won?

A1: It’s an existing, quite large defence installation in the UK, I can’t tell you exactly what it is, and it has a series of embedded systems within it that are obsolete and it’s a facility that needs upgrading.

We entered competition to secure a win for the provision of 50 custom systems, and they’re custom because they have to interface exactly into existing infrastructure.

Within each system is one of our high-end single board computers, a dedicated card for timing, it’s very important for all 50 computers in this system are precisely synchronised, and a dedicated card for comms, as this installation collects data from all these computers, analyses it and then shares it back out across the customer.

Q2: Obviously winning a contract with a FTSE 250 company sounds like a lot of work, what led up to you to winning the contract?

A2: The customer initially approached the market, contacted us directly as well as we think other people with the opportunity to upgrade their system and replace these obsolete embedded systems.

We engaged in that very proactively, lent into it I would say quite hard, in a good way,  and through that we secured a de-risking programme, that’s quite normal with these custom system type opportunities. The customer will spend some money with the vendor de-risking, doing initial design work in order to validate that our solution will solve their challenge.

That’s very different to our historical nearly four decades experience of selling boards, where typically a customer will say ‘do you have a board like this?’ and we would say yes or no. In this situation, the customer says, ‘can you help me solve my challenge, and what will it look like?’.

Q3: Why is this such an important win for you?

A3: It’s a real big step forward.

So, we publicly declared that we would enter this embedded systems market, not just the provision of our very successful plug-in cards, our single board computers, but those cards then go into systems.

Until this point, those systems have always been provided by other people and that does two things. It means we are not having the intimate conversation with the customer community around what challenges are they trying to solve, but it also means if that systems provider has their own card solution for example, that’s an opportunity that we don’t get to participate in. So, by becoming a provider of systems as well as cards, these systems are much higher value than a single card but it also gives our cards’ business across the market.

By winning quite a significant piece of work with a reputable large UK company, I see that very much as a big proof point for the successful initial stages of this systems strategy that we’ve so publicly declared.

Q4: Do you think we can expect more contracts like this to come for Concurrent Technologies?

A4: Yes, absolutely, no question, we are managing quite an active pipeline of opportunities.

Now, switching on a business like this is not an overnight activity, sales cycles are very long, I talked about the de-risking programme we worked on, that was a many months activity.

So, the answer to your question is yes, and as we enter 2024, we’ll start to see many more opportunities. Over a number of years, I would expect this systems line of business to be at least equal to our existing boards business in size.

Click to view all articles for the EPIC:
Or click to view the full company profile:
Concurrent Technologies plc

More articles like this

Concurrent Technologies plc

Concurrent Technologies completes acquisition of Phillips Aerospace

Concurrent Technologies plc (LON:CNC) a world-leading specialist in the design and manufacture of high-end embedded computer solutions for critical applications, has announced that it has completed the acquisition of Phillips Aerospace, a designer and manufacturer of

Concurrent Technologies plc

Concurrent Technologies delivers new VPX plug-in card variant

Concurrent Technologies plc (LON:CNC), a global specialist in the design, development and manufacture of leading-edge embedded computer solutions for critical applications, has announced that it has engineered and now shipped, a new version of a flagship

Concurrent Technologies plc

Visit Concurrent Technologies at DSEI 2023

Join Concurrent Technologies Plc in Hall 2, Stand H2 – 913, at the ExCeL London Exhibition Centre from 12th-15th September, and discover more about their latest range of embedded solutions, systems, and services. DSEI 2023, in the most significant

Concurrent Technologies plc

Concurrent posts record first half revenues

Essex based Concurrent Technologies Plc, which designs and makes high-end embedded computer systems and boards for critical applications, has increased revenues and pre-tax profits in the six months to June 30. Based on its unaudited management

Concurrent Technologies plc

Concurrent Technologies jumps on upbeat forecast

Shares in computer essentials maker Concurrent Technologies up 14.9% at 66.94 pence. The company expects to post FY revenues slightly ahead of current market expectations and profit before tax (PBT) materially ahead of estimates. “Global supply chain

Concurrent Technologies plc

Helios – Rugged Vision System

Helios demonstrates Concurrent Technologies’ expertise and commitment to providing a range of ruggedized system solutions with an optimal Size, Weight, Power and Cost (SWaP-C) envelope that operate reliably in challenging environments. This ruggedized vision computer system

Concurrent Technologies plc

Concurrent Technologies CEO & CFO webinar

Concurrent Technologies plc (LON:CNC) designs and manufactures a range of computing products for use in critical embedded applications.  The Company was established in 1985 with the majority of products being high performance Single Board Computers (SBC’s)

Concurrent Technologies plc

Concurrent Technologies revenue ahead of market expectations

Concurrent Technologies Plc (LON:CNC), a world leading specialist in high-end embedded computer products for critical applications, has announced its results for the year to 31 December 2022. Financial Highlights The global components shortage continued to constrain financial performance,

Concurrent Technologies plc

Concurrent Technologies new SOC-e distributor agreement

Concurrent Technologies has signed a distribution agreement with SoC-e, an internationally recognized provider of advanced equipment for real-time, high-availability Deterministic Ethernet networking for critical sectors. This significant distribution agreement enables Concurrent Technologies to offer SoC-e’s Relyum

Concurrent Technologies plc

Concurrent Technologies lands first substantial Systems contract

Concurrent Technologies, (LON:CNC) a world-leading specialist in the design and manufacture of high-end embedded computer and system-orientated solutions for critical applications, has announced that it has secured a contract with a UK FTSE 250 company to supply a