One to Watch

CONCURRENT Technologies makes high-end embedded computer products for critical applications in the defence, aerospace, transportation, communications and industrial markets. The firm's products deliver very high levels of reliability that make them ideal for different industries and therefore the products are price inelastic with gross margins earned in excess of 55 per cent.

At its recent AGM, the firm said the marketplaces that it sells into are rich in opportunity, particularly the defence sector. An area that is likely to continue to grow is the detection and detonation of improvised explosive devices and the firm's product is showing growing traction.

Although the firm only has a market cap of 28 million, it has cash on its balance sheet of 4m, giving it the flexibility to continue to invest in product development in addition to increasing its dividend. On a current rating of circa 10x 2010E P/E with good growth opportunities, Concurrent looks an interesting investment. Longer-term it is possible the company will be bought by a larger competitor.

The value of your investment could fall and you may get back less than you invested. You should take professional advice if you have any doubt about the suitability of this company for your portfolio.

Young & Co Brewery

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Broker says BUY

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Topps Tiles

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Broker says BUY

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