Lease agreed for new HQ & manufacturing facility
Concurrent agreed 20-year lease for 40,000 sq ft HQ and manufacturing facility, doubling production capacity, moving H2 2026.
- New facility size 40,000 sq ft
- Current facility expansion more than doubles floorspace
- Kit out and equipment cost approximately £5m
- Lease term 20 years
- Distance from current location seven miles southwest
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Concurrent Technologies Plc (AIM: CNC), a designer and manufacturer of leading-edge computer products, systems, and mission-critical solutions used in high-performance markets by some of the world's major OEMs, announces that, subject to customary lease closing matters, it has reached agreement in principle to take a 20-year lease for a new property to house its Colchester-based headquarters and UK manufacturing. This new, purpose-built facility will enhance the Company's ability to service the ongoing growth of the business.
In 2023, the Company added a second shift in assembly, which notionally doubled production capacity. With approximately 40,000 square feet, and with the ability to create further space if required, the selected property more than doubles the floorspace of the current property. The Company has decided to concurrently invest in machines to double PCB assembly capacity, for installation into the new building.
Located just seven miles southwest of Concurrent's current location, with excellent connection to road and rail services, the Company expects to move into the new facility in the second half of 2026. Kit out of the new facility, including the additional equipment and machinery, will be approximately £5m and funded out of existing cash reserves.
In the meantime, the Company retains the ability to use external contract manufacturers to produce Concurrent's products as a source of additional capacity, if required.
Miles Adcock, CEO, said, "This new purpose-built factory is an exciting milestone for Concurrent, delivering significant benefits to our customers, and investors, and provides a state-of-the-art environment for our team. The growth in our Products business drives the need for capacity expansion. The new facility will allow us to meet the increasing customer demand while improving production flexibility and efficiency, enabling us to streamline operations and better serve our customers. This investment is a key milestone in Concurrent's evolution as a leading player in the global defence electronics arena."
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.