America is worried. Government officials say the situation in the Middle East is dire, with troops under attack across the region, international ships under repeated attacks in the Red Sea, and three U.S. service members killed last week. They say it’s the most dangerous situation in at least 50 years. Expatriate in Jordan.
The White House is not alone in its concerns. The war in Ukraine, hostilities in Gaza, and increasing aggression from China all indicate that the world appears to be at its hottest in decades.
As a result, politicians are under pressure to answer tough questions from the public. Does the military have enough manpower? Is it supported by modern equipment? Will they be able to defend our country and our values?
An increasing number of people feel that they are not in an environment where they can save money by cutting back on defense. And while debate continues at home and abroad, the mood among governments is clear that modern technology is essential to protecting military personnel and others from hostile aggressors.
based in colchester parallel technology is well positioned to support these efforts. Founded in 1985, the company specializes in computer products for harsh and harsh environments where resiliency and quality are essential.
Strategy: Concurrent Technologies has shifted its focus to defense
For many years, Concurrent has primarily worked with telecom businesses. But recently, the company has shifted its focus to defense, which now accounts for about 70% of its revenue.
At 86p, Parallel shares should rise considerably over the next few years, as chief executive Miles Adcock has ambitious growth plans and a keen sense of how to deliver them. Concurrent was in a bit of a shaky state when Adcock arrived in 2021. Management had been in place for decades, product development was slow, and sales efforts were lackluster. Adcock grabbed the bull by the horns and got to work.
With decades of experience at defense companies such as BAE Systems and QinetiQ, he recognizes that the core business has a lot of potential but requires more energy, focus and mental strength. I did.
Dozens of senior employees have left the company, but new employees have joined the company, many of them engineers and other professionals who have worked with Adcock in the past. The culture change took root within months, and the company is now firing on all cylinders.
Mr Adcock revealed last month that sales and profits in 2023 were expected to exceed expectations, with turnover expected to rise by more than 60% to £31m. Persistent shortages of critical supplies hit profits in 2022, but they rebounded last year and brokers now expect profits to rise from £400,000 to £3.6m.
The order pipeline is also healthy. At the same time, we supply the Department of Defense, the United States Department of Defense, and the militaries of countries such as India, Malaysia, and South Korea.
Bidding for new contracts is highly competitive, with several companies being asked to submit ideas each time new kit is needed. Not only are military departments looking for high-quality, cutting-edge ideas, they also need to know that the winning bidder will deliver the goods on time and be available for service if anything goes wrong.
Rival contractors are often much larger than Concurrent, and the company typically receives one or two bids a year. Adcock and his team won eight of his games last year and are hoping to do even better in 2024. Deals typically increase revenue slightly at first, but gain momentum over the years, with each contract sometimes lasting more than a decade of his life.
War zone: The company’s kit helps soldiers communicate
This gives Adcock reason for optimism. He wants to more than triple sales to £100m over the next few years, and increase profits accordingly. We employ highly skilled engineers, actively recruit sales staff, and have a top-class order volume.
Concurrent is also benefiting from changes in U.S. Department of Defense procurement policy that encourage competition from smaller companies. Sales in the UK are trending steadily, rapidly increasing fivefold to around £5 million last year, and further growth is expected.
Adcock is also keen to add more products to Concurrent’s arsenal, having acquired a US company specializing in aerospace systems for military and commercial applications late last year.
Midas’ verdict: Concurrent computers are in a separate field from consumer electronics. Used in combat zones and areas of extreme stress, they help soldiers, sailors, and pilots detect danger, protect themselves, and convey important messages. While the current economic climate does not automatically lead to increased defense spending, it does create a focus on government consciousness that could benefit concurrency. At 86p, the stock is a long-term buy.
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