Close
RNS Number : 6930M
CML Microsystems PLC
19 November 2024
 

19 November 2024

CML Microsystems Plc

("CML", the "Company" or the "Group")

Half Year Results

Resilient trading and operational progress in challenging market conditions

CML Microsystems Plc which develops mixed-signal, RF and microwave semiconductors for global communications markets, today announces its unaudited results for the six months ended 30 September 2024.

Financial Highlights

·     

Revenue increased by 18% to £12.53m (HY FY24: £10.58m) including a contribution of approximately £3.50m from products associated with the MwT acquisition

·     

Profit from operations of £0.58m (H1 FY24: £1.61m) and a profit before tax of £0.82m (H1 FY24: £1.87m)

·     

Basic earnings per share2 of 4.34p (HY FY24: 9.44p)

·     

Strong cash balances at period end of £14.98m1 (30 March 2024: £18.21m)

·     

The Board is declaring an interim dividend of 5p per ordinary share (HY FY24: 5p per share)

Operational Highlights

·     

Expansion into new, adjacent market segments with R&D focused on new product developments to target a wider customer base, including several new product releases

·     

Successful post-acquisition integration of MwT, with increased marketing and support activities around the enlarged product portfolio

·     

Industry-wide challenges remain in the short term, but expansion into microwave, millimetre wave and broadcast radio sectors underway and the Group remains well positioned as conditions improve

1.    Net cash is the total of cash, cash equivalents and short-term deposits see note 7.

2.    Basic earnings per share reconciliation see note 6.

 

Chris Gurry, Managing Director of CML Microsystems Plc, commented on the results:

"The progress we've made this period despite the ongoing headwinds in some industrial markets showcases the resilience and adaptability of our business model. We continue to expand our market position as we navigate industry-wide challenges by diversifying and innovating our product portfolio to target adjacent markets that offer the most potential. Long-term customer relationships with blue-chip organisations remain strong, underscoring our reputation as a trusted technology partner.

 

While market conditions remain subdued in the near term, our ongoing investments, strategic initiatives and a strong balance sheet lay the foundations on which to build sustained, meaningful growth in the medium term."

 

 

Enquiries:

CML Microsystems Plc

Chris Gurry, Group Managing Director

Nigel Clark, Non-Executive Chairman

 

www.cmlmicroplc.com
Tel: +44 (0) 1621 875 500

Shore Capital (Nominated Adviser and Broker)

Toby Gibbs

James Thomas

Lucy Bowden

Fiona Conroy (Corporate Broking)

 

Tel: +44 (0) 20 7408 4090

Alma

Josh Royston

Andy Bryant

Robyn Fisher

Emma Thompson  

Tel: +44 (0)20 3405 0205

 



 

About CML Microsystems PLC

CML develops mixed-signal, RF and microwave semiconductors for global communications markets. The Group utilises a combination of outsourced manufacturing and in-house testing with trading operations in the UK, Asia and USA. CML targets sub-segments within Communication markets with strong growth profiles and high barriers to entry. It has secured a diverse, blue chip customer base, including some of the world's leading commercial and industrial product manufacturers.

 

Growth in its end markets is being driven by factors such as the appetite for data to be transmitted faster and more securely, the upgrading of telecoms infrastructure around the world and the growing prevalence of private commercial wireless networks for voice and/or data communications linked to the industrial internet of things (IIoT).

 

The Group is cash-generative, has no debt and is dividend paying.



 

 

Chief Executive's review

 

Overview

 

The first six months of the financial year to 31 March 2025 has seen the Company make steady operational progress on several fronts. We are pleased by the resilience of our business model and the strategic progress made, despite the relative softness within some of the industrial markets addressed and ongoing customer inventory management dynamics. CML's market position has been expanded into new, adjacent market segments with an increased product-set thereby increasing the business' growth potential; important groundwork has been laid to build upon.

 

The post-acquisition integration of MwT has continued, with increased marketing and support activities around the enlarged product portfolio. As a new entrant to some end markets, particular attention is being paid to promoting awareness of CML as a proven and reliable technology partner. The Group's existing blue-chip customer base is assisting that process in conjunction with a continual focus on new customer reach, opportunity pipeline growth and enhancements to the sales channel network.

 

Research & development activities have been focused on new product developments to serve wider market access along with specific programmes to ensure security of supply for a selection of the more established key products. New product announcements included:

 

·     

formal production availability of the DRM1000 - a complete Digital Radio Mondiale (DRM) broadcast receiver implementation, consuming 80% less power than other commercially available receivers;

·     

the launch of a millimetre-wave gallium nitride (GaN) power amplifier that represents a cost-effective building block, primarily aimed at applications such as commercial high-volume satellite communication terminals; and

·     

2W gallium arsenide (GaAs) MMIC power amplifier optimised for specific performance and reliability technical characteristics that make it an ideal choice for radio frequency identification (RFID) readers, smart metering and other IoT wireless devices

 

These product releases are targeted at new customers in adjacent communication market sectors, each representing significant growth opportunities.

 

The Group has R&D capabilities across multiple sites and, following a strategic review earlier in the year, the decision has been made to perform a restructuring within the UK team to facilitate streamlined collaboration, resource sharing and increased productivity. The process is expected to be complete by the end of the current financial year and further detail will be provided at the time of the full year results.

 

There have been disappointing delays in obtaining local US government building permits that are needed to unlock efficiency improvements and cost reductions within the Group's Silicon Valley-based facilities. The first half results include elevated costs relating to those delays with additional expenses stretching into the second half. Whilst it is not possible to put a definitive date on a resolution, current expectations are for the situation to be resolved by the end of the calendar year.

 

To summarise, multi-year investments have positioned us well for expansion with operational tweaks continuing to be made. The traditional voice and data centric markets are temporarily challenging but as a sole source supplier and supported by regular customer dialogue, we are confident that it is an industry wide problem. Expansion into microwave, millimetre wave and now broadcast radio sectors is underway and we remain very well placed as conditions improve.

 

Financial summary

 

Revenues for the first half of the financial year climbed 18% to £12.53m (H1 FY24: £10.58m), including a contribution of approximately £3.50m from products associated with the MwT acquisition. Geographically, sales into the Far East fell by close to 10% against the prior year comparable period, largely due to the previously reported environment in China. However, increases of 28% and 137% were recorded from the Americas and Europe respectively, where the Group is now shipping products into new application areas including fixed wireless backhaul, test & measurement and radar. The overall product mix delivered a gross profit of £8.74m (H1 FY24: £7.94m).

 

The maiden inclusion of MwT in the opening six-month period drove an increase in expenses against the prior year equivalent. One-off costs associated with US national security compliance activities and a loss on foreign exchange also contributed, leading to an overall rise in distribution and administration costs to £7.98m (H1 FY24: £6.32m).

 

The Group delivered a profit from operations of £0.58m (H1 FY24: £1.61m) and a profit before tax of £0.82m (H1 FY24: £1.87m).

The Board is declaring an interim dividend of 5.0p per ordinary share (H1 FY24: 5.0p), payable on 13 December 2024 to shareholders on the register on 29 November 2024.

 

As planned, stock levels have increased, predominantly at the raw material level. This is partly due to the inclusion of MwT from October 2023, but also in line with the strategic initiative to ensure continuity of supply in what continues to be an uncertain global environment. At 30 September 2024, inventory levels stood at £4.77m (31 March 2024: £3.67m). As noted in the Company's AGM statement on 13 August 2024, an improvement in customer inventory levels is anticipated during the second half of the financial year.

 

The balance sheet remains strong, with no debt, and disciplined cash management contributed to cash/cash equivalents totalling £14.98m at 30 September 2024 (30 March 2024: £18.21m). This follows cash outflows, totalling £5.01m arising from a combination of MwT acquisition stage payments (£0.96m), a final dividend (£0.96m), the purchase of Company shares for treasury (£0.45m) and investment in research and development costs of £2.64m. Further cash payments totalling £2.27m, in relation to the MwT acquisition, fall due in the second half of the year.

 

Property

 

Having been granted, in February 2023, planning permission on excess land at the Group's Essex Headquarters site, Oval Park, the land has been placed on the market for sale. It is the Group's intention to dispose of all surplus land and property that is outside of its operational needs. This also includes a vacant commercial property in Fareham, Hampshire. These one-off transactions are subject to attractive terms being achieved.

 

Current trading & outlook

 

We are pleased with the resilience of our business model, which against a backdrop of industrial market softness and stubbornly elevated customer inventory levels, is expected to deliver revenues in line with market expectations. We have made good operational progress in the half, and the Group's growth prospects have been enhanced through its investments and entry into additional market sectors with an expanded product set.

 

That being said, given the investment efforts to unlock future financial and operational gains alongside the protracted US building permit process and related costs, if the current trading environment persists, it will become challenging to meet management's full year expectations for trading profitability.

 

An additional consideration is that opportunities may present themselves in the meantime to realise exceptional benefits from the Group's non-operational property assets and discussions are ongoing. This adds to the variability of profit outcomes.

 

The Board is confident that the Company is well placed to deliver meaningful growth over the medium term as our growing product portfolio meets the increasingly complex needs of industrial communications. Whilst external pressures outside of our control remain frustrating, the operational decisions being taken, continuing investments and considerable effort expended will drive future performance.

 

 

 

 

 

 

Chris Gurry

Group Managing Director

19 November 2024



 

Condensed consolidated income statement

for the six months ended 30 September 2024

 


 


Unaudited

6 months end

30/09/24

Unaudited

6 months end

30/09/23

Audited

year end

31/03/24


£'000

£'000

£'000

Continuing operations

 



Revenue

12,530

10,575

22,893

Cost of sales

(3,786)

(2,631)

(6,683)

Gross profit

8,744

7,944

16,210

Distribution and administration costs

(7,983)

(6,318)

(14,226)

Share-based payments

(159)

(103)

(214)


602

1,523

1,770

Other operating income

(27)

85

173

Profit from operations

575

1,608

1,943

Other income

14

50

62

Finance income

274

235

547

Finance expense

(48)

(20)

(37)

Profit before taxation

815

1,873

2,515

Income tax charge

(118)

(406)

(455)

Profit after taxation for period attributable to equity owners of the parent

697

1,467

2,060

All financial information presented relates to continuing activities.

 

Earnings per share from total operations attributable to the ordinary equity holders of the Company:

Basic earnings per share

4.34p

9.44p

13.00p

Diluted earnings per share

4.32p

9.31p

12.86p

 

The following measure is considered an alternative performance measure, not a generally accepted accounting principle. This ratio is useful to ensure that the level of borrowings in the business can be supported by the cash flow in the business. For definition and reconciliation see note 8.

 

Adjusted EBITDA

2,876

3,230

5,703

 



 

Condensed consolidated statement of total comprehensive income

for the six months ended 30 September 2024


 

Unaudited

6 months end

 

Unaudited

6 months end

 

Audited

year end


30/09/24

30/09/23

31/03/24


£'000

£'000

£'000

Profit for the period

697

1,467

2,060

Other comprehensive income/(expense):

 



Items that will not be reclassified subsequently to profit or loss:

 



Re-measurement of benefit obligation

-

-

(361)

Deferred tax on actuarial gain

-

-

90

Items reclassified subsequently to profit or loss upon derecognition:

 



Foreign exchange differences

(1,030)

(493)

(1,153)

Other comprehensive income for the period net of taxation attributable to the equity holders of the parent

(1,030)

(493)

(1,424)

Total comprehensive income for the period attributable to the equity holders of the parent

(333)

974

636

                                               



 

Condensed consolidated statement of financial position

as at 30 September 2024

 


Unaudited

Unaudited

Audited


30/09/24

30/09/23

31/03/24


£'000

£'000

£'000

Assets

 



Non-current assets

 



Goodwill

13,853

7,152

14,449

Other intangible assets

2,942

885

3,350

Development costs

16,022

14,391

15,150

Property, plant and equipment

5,643

6,087

5,655

Right-of-use assets

2,269

910

813

Deferred tax assets

733

618

788


41,462

30,043

40,205

Current assets

 



Property, plant and equipment - held for sale

1,124

-

1,124

Investment properties - held for sale

1,975

1,975

1,975

Inventories

4,768

2,187

3,672

Trade receivables and prepayments

3,354

2,881

3,734

Current tax assets

303

71

190

Cash and cash equivalents

9,145

14,300

11,262

Short-term cash deposits

5,834

6,646

6,951


26,503

28,060

28,908

Total assets

67,965

58,103

69,113

Liabilities

 



Current liabilities

 



Trade and other payables

6,268

2,230

7,528

Provisions

196

-

208

Lease liabilities

385

198

219

Current tax liabilities

127

4

16


6,976

2,432

7,971

Non-current liabilities

 



Deferred tax liabilities

5,279

4,450

5,224

Trade and other payables

2,509

-

2,509

Lease liabilities

2,003

751

637

Retirement benefit obligation

1,696

1,204

1,696


11,487

6,405

10,066

Total liabilities

18,463

8,837

18,037

Net assets

49,502

49,266

51,076

Capital and reserves attributable to equity owners of the parent

 



Share capital

825

796

825

Share premium

2,264

2,327

2,327

Capital redemption reserve

8,372

8,372

8,372

Other reserve

3,073

-

3,073

Treasury shares - own share reserve

(2,143)

(1,822)

(1,822)

Share-based payments reserve

814

566

666

Foreign exchange reserve

(1,141)

549

(111)

Retained earnings

37,438

38,478

37,746

Total shareholders' equity

49,502

49,266

51,076



 

Condensed consolidated cash flow statement

for the six months ended 30 September 2024

 


Unaudited

Unaudited

Audited


6 months end

6 months end

year end


30/09/24

30/09/23

31/03/24


£'000

£'000

£'000

Operating activities

 



Profit for the period before taxation

815

1,873

2,515

Adjustments for:

 



Foreign exchange movement

(68)

-

(140)

Depreciation - on property, plant and equipment

269

239

520

Depreciation - on right-of-use assets

444

111

486

Amortisation of development costs

1,159

1,020

2,110

Amortisation of intangibles recognised on acquisition and purchased

256

99

368

Profit on disposal of fixed assets

-

-

5

Movement in non-cash items (retirement benefit obligation)

90

90

131

Share-based payments

159

103

214

Finance income

(274)

(235)

(547)

Finance expense

48

20

37

Movement in working capital

(1,016)

(1,381)

(1,966)

Cash flows from operating activities

1,882

1,939

3,733

Income tax (paid)/received

(119)

1,483

1,311

Net cash flows from operating activities

1,763

3,422

5,044

Investing activities

 



Purchase of property, plant and equipment

(264)

(597)

(1,524)

Investment in development costs

(2,057)

(1,666)

(3,541)

Repayment/(investment) in fixed term deposits (net)

1,117

(5,428)

(5,733)

Acquisition of subsidiary (net of cash acquired)

(956)

-

(565)

Investment in intangibles

-

(32)

(32)

Finance income

274

235

547

Net cash outflow investing activities

(1,886)

(7,488)

(10,848)

Financing activities

 



Lease liability repayments

(403)

(122)

(502)

Issue of ordinary shares (net of expenses)

63

117

117

Purchase of own shares for treasury

(446)

(1,750)

(1,750)

Dividends paid to shareholders

(961)

(932)

(1,739)

Finance expense

(10)

-

(4)

Net cash outflow from financing activities

(1,757)

(2,687)

(3,878)

Decrease in cash, cash equivalents and short-term cash deposits

(1,880)

(6,753)

(9,682)

Movement in cash and cash equivalents:

 



At start of period/year

11,262

21,041

21,041

Decrease in cash, cash equivalents and short-term cash deposits

(1,880)

(6,753)

(9,682)

Effects of exchange rate changes

(237)

12

(97)

At end of period

9,145

14,300

11,262

Cash flows presented exclude sales taxes. Further cash-related disclosure details are provided in note 7.

 

Changes in liabilities arising from financing activities relate to lease liabilities only.

 

 



 

Condensed consolidated statement of changes in equity

for the six months ended 30 September 2024

 

 

 




Capital



Share-

Foreign




Share

Share

redemption

Other

Treasury

based

exchange

Retained



capital

premium

reserve

reserve

shares

payments

reserve

earnings

Total

Unaudited

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 31 March 2023

796

2,462

8,372

-

(324)

488

1,042

37,918

50,754

Profit for period








1,467

1,467

Other comprehensive income net of taxes










Foreign exchange differences







(493)


(493)

Total comprehensive income for the period

-

-

-

-

-

-

(493)

1,467

974


796

2,462

8,372

-

(324)

488

549

39,385

51,728

Transactions with owners in their capacity as owners










Issue of treasury shares


(135)



252




117

Purchase of own shares - treasury





(1,750)




(1,750)

Dividend paid








(932)

(932)

Total of transactions with owners in their capacity as owners

-

(135)

-

-

(1,498)

-

-

(932)

(2,565)

Share-based payments






103



103

Cancellation/transfer of share-based payments






(25)


25

-

At 30 September 2023

796

2,327

8,372

-

(1,822)

566

549

38,478

49,266

Profit for period








593

593

Other comprehensive income net of taxes










Foreign exchange differences







(660)


(660)

Re-measurement of defined benefit obligations








(361)

(361)

Deferred tax on actuarial loss








90

90

Total comprehensive income for the period

-

-

-

-

-

-

(660)

322

(338)

 

796

2,327

8,372

-

(1,822)

566

(111)

38,800

48,928

Transactions with owners in their capacity as owners










Issue of ordinary shares - acquisition

29



3,073





3,102

Dividend paid








(807)

(807)

Total of transactions with owners in their capacity as owners

29

-

-

3,073

-

-

-

(807)

2,295

Share-based payment charge






111



111

Deferred tax on share-based payments








(258)

(258)

Cancellation/transfer of share-based payments






(11)


11

-

At 31 March 2024

825

2,327

8,372

3,073

(1,822)

666

(111)

37,746

51,076

 



 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY continued

for the six months ended 30 September 2024

 




Capital



Share-

Foreign




Share

Share

redemption

Other

Treasury

based

exchange

Retained



capital

premium

reserve

reserve

shares

payments

reserve

earnings

Total

Unaudited

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

£'000

At 31 March 2024

825

2,327

8,372

3,073

(1,822)

666

(111)

37,746

51,076

Profit for period

 

 

 

 

 

 

 

697

697

Other comprehensive income net of taxes

 

 

 

 

 

 

 

 

 

Foreign exchange differences

 

 

 

 

 

 

(1,030)

 

(1,030)

Total comprehensive income for the period

-

-

-

-

-

-

(1,030)

697

(333)


825

2,327

8,372

3,073

(1,822)

666

(1,141)

38,443

50,743

Transactions with owners in their capacity as owners

 

 

 

 

 

 

 

 

 

Issue of treasury shares

 

(63)

 

 

124

 

 

 

61

Purchase of own shares - treasury

 

 

 

 

(445)

 

 

 

(445)

Dividend paid

 

 

 

 

 

 

 

(961)

(961)

Total of transactions with owners in their capacity as owners

-

(63)

-

-

(321)

-

-

(961)

(1,345)

Share-based payments

 

 

 

 

 

159

 

 

159

Deferred tax on share-based payments

 

 

 

 

 

 

 

(55)

(55)

Cancellation/transfer of share-based payments

 

 

 

 

 

(11)

 

11

-

At 30 September 2024

825

2,264

8,372

3,073

(2,143)

814

(1,141)

37,438

49,502



 

Notes to the condensed consolidated financial statements

for the six months ended 30 September 2024

 

1 Basis of preparation and approval of interim statements

The financial information for the six months ended 30 September 2024 and for the six months ended 30 September 2023 is unaudited.

 

The interim financial statement for the six months to 30 September 2024 does not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended 31 March 2024.

 

The financial information has been prepared on the basis of UK adopted international accounting standards (IFRSs) that the Directors expect to be applicable as at 31 March 2025.

 

The accounting policies adopted in the preparation of the interim financial statements are consistent with those set out in the Group's Annual Report and Financial Statements 2024, which were prepared in accordance with IFRSs.

 

This interim financial statement does not comprise statutory accounts within the meaning of Section 435 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2024 were approved by the Board on 1July 2024 and delivered to the Registrar of Companies. The report of the auditor on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498(2) or Section 498(3) of the Companies Act 2006.

 

AIM-quoted companies are not required to comply with IAS 34 'Interim Financial Reporting' and accordingly the Company has not applied this standard in preparing this report.

 

The interim financial statement were approved by the Board of Directors on 19 November 2024.

 

2 Segmental analysis

Reported segments and their results, in accordance with IFRS 8, are based on internal management reporting information that is regularly reviewed by the Group Managing Director, who is the Chief Operating Decision Maker. The measurement policies the Group uses for segmental reporting under IFRS 8 are the same as those used in its financial statements.

 

The Group is focused for management purposes on one primary reporting segment, being the semiconductor segment, with similar economic characteristics, risks and returns, and the Directors therefore consider there to be one single segment, being semiconductor components for the communications industry.

 

Geographical segments (by origin)

                                                               

 


Unaudited

Unaudited

Audited


6 months end

6 months end

year end


30/09/24

30/09/23

31/03/24


£'000

£'000

£'000

Revenue to third parties

 



UK

618

2,613

5,546

Americas

5,983

1,243

5,802

Far East

5,929

6,719

11,545

Total

12,530

10,575

22,893

 

 


Unaudited

Unaudited

Audited


6 months end

6 months end

year end


30/09/24

30/09/23

31/03/24


£'000

£'000

£'000

Total assets

 



UK

51,597

44,942

53,961

Americas

5,747

1,512

4,473

Far East

10,621

11,649

10,679

Total

67,965

58,103

69,113

 



 

 

3 Revenue

The geographical classification of business turnover (by destination) is as follows:

                                                                                                                                                               


Unaudited

Unaudited

Audited


6 months end

6 months end

year end


30/09/24

30/09/23

31/03/24


£'000

£'000

£'000

Europe

2,713

2,115

4,895

Far East

6,003

6,660

11,754

Americas

3,486

1,471

5,524

Other

328

329

720


12,530

10,575

22,893

 

The operational classification of business turnover (by market) is as follows:             


Unaudited

Unaudited

Audited


6 months end

6 months end

year end


30/09/24

30/09/23

31/03/24


£'000

£'000

£'000

Semiconductor

12,325

10,166

21,891

Design and development

205

409

1,002


12,530

10,575

22,893

Semiconductor products, goods and services are transferred at a point in time whereas design and development revenue is transferred over the period of the contract on a percentage basis of contract completion, as detailed in the Group's revenue recognition policy within its published Annual Report.

 

The Group does not have any contract assets or liabilities at 30 September 2024 (£Nil at 31 March 2024) from semiconductors as it does not fulfil any of its performance obligations in advance of invoicing to its customer. The Group has contract assets of £25,000 as at 30 September 2024 (£76,000 at 31 March 2024) from design and development and contract liabilities of £Nil as at 30 September 2024 (£Nil at 31 March 2024) from design and development. The Group has contractual balances in the form of trade receivables. See note 20 for disclosure of this in the Annual Report and Accounts for the year ended 31 March 2024.

 

The Group expects all contractual costs capitalised or any outstanding performance obligations will be completed within the next twelve months.

 

4 Dividend paid and interim dividend

The Board is declaring an interim dividend of 5p per ordinary share for the half year ended 30 September 2024, payable on 13 December 2024 to shareholders on the Register on 29 November 2024.

 

A final dividend of 6p per ordinary share was paid on 16 August 2024 and an interim dividend of 5p per ordinary share was paid on 12 January 2024, totalling 11p per ordinary share paid for the year ended 31 March 2024 (2023: 11p per ordinary share paid for the year ended 31 March 2023).



 

 

5 Income tax expense/(credit)


Unaudited

Unaudited

Audited


6 months end

6 months end

year end


30/09/24

30/09/23

31/03/24


£'000

£'000

£'000

Current tax

 



UK corporation tax on results of the period/year

                                (121)

(9)

(155)

Adjustment in respect of previous years

2

101

114


(119)

92

(41)

Foreign tax on results of the period/year

149

139

215

Total current tax

30

231

174

Deferred tax

 



Deferred tax - origination and reversal of

temporary differences

 



70

153

259

Adjustments to deferred tax charge in

respect of previous years

 



18

22

22

Total deferred tax

88

175

281

Tax expense on profit on ordinary activities

118

406

455

 

The Directors consider that tax will be payable at varying rates according to the country of incorporation of its subsidiary undertakings and have provided on that basis.

 

The tax charge for the six months ended 30 September 2024 has been calculated by applying the effective tax rate which is expected to apply to the Group for the year ending 31 March 2025, using rates substantially enacted by 30 September 2024.

 

6 Earnings per share


Unaudited

Unaudited

Audited


6 months end

6 months end

year end


30/09/24

30/09/23

31/03/24


£'000

£'000

£'000

Earnings per share from total operations attributable to the ordinary equity holders of the Company

 



Basic earnings per share

4.34p

9.44p

13.00p

Diluted earnings per share

4.32p

9.31p

12.86p

 

The calculation of basic and diluted earnings per share is based on the profit attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year, as explained below:

 


Ordinary 5p shares


Weighted



average

Diluted


number

number

Six months ended 30 September 2024

16,047,329

16,141,190

Six months ended 30 September 2023

15,546,906

15,765,610

Year ended 31 March 2024

15,842,911

16,016,767

 



 

7 Cash, cash equivalents and short-term deposits

 


Unaudited

Unaudited

Audited


6 months end

6 months end

year end


30/09/24

30/09/23

31/03/24


£'000

£'000

£'000

Cash on deposit

2,176

3,016

3,095

Cash at bank

6,969

11,284

8,167


9,145

14,300

11,262

Short-term cash deposits

5,834

6,646

6,951


14,979

20,946

18,213

 

8 Adjusted EBITDA

Adjusted earnings before interest, tax, depreciation and amortisation ('Adjusted EBITDA') is defined as profit before taxation and before all interest, tax, depreciation and amortisation charges and before share-based payments. The following is a reconciliation of the Adjusted EBITDA for the three periods presented:


Unaudited

Unaudited

Audited


6 months end

6 months end

year end


30/09/24

30/09/23

31/03/24


£'000

£'000

£'000

Profit before taxation (earnings)

815

1,873

2,515

Adjustments for:

 



Finance income

(274)

(235)

(547)

Finance expense

48

20

37

Depreciation

269

239

520

Depreciation - right-of-use assets

444

111

486

Amortisation of development costs

1,159

1,020

2,110

Amortisation of intangibles of purchased and acquired intangibles recognised on

 



acquisition

256

99

368

Share-based payments

159

103

214

Adjusted EBITDA

2,876

3,230

5,703

 



 

9 Acquisition of Microwave Technology Inc.

The Company announced on 2 October 2023 that it had successfully completed the acquisition of Microwave Technology Inc for a total consideration of $13.18m, of which $7.65m was payable in cash and $5.53m is payable in shares. The acquisition was not previously reported in the unaudited accounts ended 30 September 2023. In the audited accounts ended 31 March 2024 this was reported as an acquisition.

 

The acquisition expands the Group's product portfolio, strengthens and enhances its support resources and increase its R&D capabilities, providing essential knowhow and experience in system level understanding, product manufacturing and packaging techniques. MwT's products are complementary to CML's existing offering.

 

Further information can be found in the Annual Report and Accounts ended 31 March 2024 which can be reviewed on the Company website: www.cmlmicroplc.com or obtained from Companies House.

 

 

10 General

Other than already stated within the Chief Executive's Review, there have been no important events during the first six months of the financial year that have impacted this Half Yearly Report.

 

There have been no related party transactions or changes in related party transactions described in the latest Annual Report that could have a material effect on the financial position or performance of the Group in the first six months of the financial year.

 

The Company has appointed Cooper Parry Group Limited as its new auditor's replacing BDO LLP who have formally resigned and have not notified the Company of any reasons or matters connected with their ceasing to hold office as auditors. Cooper Parry will conduct the audit of the Company's financial statements for the financial year to 31 March 2025.

 

The auditor's report on those accounts did not contain a statement under Section 498(2) or (3) of the Companies Act 2006. This Half Yearly Report has not been audited by the Group auditor.

 

A copy of this Half Yearly Report can be viewed on the Company website: www.cmlmicroplc.com.

 

11 Approvals

The Directors approved this Half Yearly Report on 19 November 2024.

 

 

 


 

 

 

 

 

Glossary

 

5G                           Fifth Generation Cellular Network Technology

AIM                         Alternative Investment Market

AMR                        Automatic Meter Reading

DRM                        Digital Radio Mondiale

EBITDA                  Earnings before interest, tax, depreciation and amortisation

EPS                         Earnings per share

FY                           Full Year

GaAs                      Gallium Arsenide

GaN                        Gallium Nitride

H1                           First Half (Financial Year)

IAS                          International Accounting Standards

IC                            Integrated Circuit

IFRS                        International Financial Reporting Standards

IIoT                         Industrial Internet of Things

IoT                          Internet of Things

LMR                        Land Mobile Radio

M2M                        Machine to Machine

MMIC                      Monolithic Microwave Integrated Circuit

PMR                        Private Mobile Radio

R&D                        Research and Development

RF                           Radio Frequency

RFID                       Radio Frequency Identification



 

CML Microsystems Plc

Oval Park, Langford

Maldon, Essex

CM9 6WG

 

T: +44 (0)1621 875500

F: +44 (0)1621 875606

 

group@cmlmicroplc.com

 

Visit us online at

www.cmlmicroplc.com

 

 

 

 

 

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
 
END
 
 
IR GPGPGGUPCGRR