Defence manufacturer Concurrent Technologies bags new contracts after acquisition

Concurrent Technologies, a designer of computer products for the aerospace sector, has bagged two new contracts via its recently acquired subsidiary, Philips Aerospace.

The total value of the contracts comes to $518k (£405,262) and one of the providers is known to be a US-based defence company. Concurrent Technologies acquired Phillips Aerospace in September in a deal valued at $3.38m (£2.64m).

One deal will provide Phillips with conduction cooled chassises, with the company undertaking the design engineering, production and testing.

Concurrent Technologies said “follow on orders are expected in the coming years,” while additional contracts and “strategic opportunities” are also being discussed with the same customer.

Further contracts with the other customer are also expected in future.

Miles Adcock, chief executive of Concurrent Technologies, said: “These contract wins reinforce the rationale for acquiring Phillips Aerospace, where we now have a combined entity that is capable of winning and executing Systems contracts, such as these, with the potential for material multi-year revenues. 

“We have the ambition over the next few years to grow our Systems revenue to the same size as our traditional PICs business and we expect to be able to announce further deals through the year to support this.”   

It comes after a strong first half for Concurrent Technologies, with shares up over 30 per cent in the year to date.

The US-based firm, which has UK facilities based in Colchester and Theale, posted a “record financial performance” in January on the back of what it described as “significant design-in wins, new product releases and investment made in the Systems business.”

A $1.57mn (£1.26mn) contract with a US contractor followed soon after, following a year in which profit jumped year-on-year to £6m, up from £2.1m.