Arsenal of new products hands CML weapons for growth
Lower revenues and profits for Essex tech business CML Microsystems Plc for the year to March 31 will not be allowed to overshadow fresh global growth opportunities, the company has vowed.
CML, which develops mixed-signal, RF and microwave semiconductors for global communications markets, saw revenue dip to £12.5 million from £15m a year ago as the COVID backlash hit voice-centric markets. Gross profit fell to £9.27m from £11.70m last time.
Profit before tax declined to £0.01m (2020: £1.18m) after accounting for share-based payments and net finance income. The board is recommending a final special dividend of 50p per ordinary 5p share. CML had a record order book in continuing business at March 31.
MD Chris Gurry said: “This has clearly been a transformational year for the business. We made the decision to dispose of the storage division to focus on an expanding communications market opportunity and the board believes that the group can now scale without the distraction of conflicting divisional and operational investment needs.
“We start the new trading year in a much stronger position than one year ago. Headwinds remain, including the pandemic, trade uncertainty between China and the US and the ongoing semiconductor capacity issues that are widely reported.
“That said, the underlying feeling within the company is one of opportunity and optimism evidenced by our day-to-day activities and the pipeline of opportunity that we see.
“As we move through the year ahead with an arsenal of new products, intellectual property, skills and market intelligence, the group intends to capture share in much larger application areas.
“Economic uncertainty aside, the fundamental growth factors are positive and subject to unforeseen circumstances, we expect a good year of progress for the continuing business, both from a revenue and a profitability perspective.”