22nd Nov 2016 10:50
LONDON (Alliance News) - CML Microsystems PLC Tuesday said it is confident in growth in profit and revenue for its full year, as it reported a rise in pretax profit for its first half.
The company, which makes semiconductors for the communication and solid state storage markets, reported a pretax profit of GBP1.7 million for the half year to the end of September, up from GBP1.2 million the previous year. Revenue rose to GBP13.0 million from GBP11.0 million, helped by a GBP402,000 two month contribution from its acquisition of Sicomm.
CML said strong revenue growth, combined with stable gross margins, meant its results had "materially exceeded initial expectations". Revenue was boosted by the depreciation of the pound following the UK's vote to leave the European Union in June, as well as the contribution from Sicomm.
The company said it had been pleased with the integration of Sicomm thus far. CML noted that it intends to compliment its organic growth with appropriate acquisitions.
Looking ahead, CML said market conditions appear to have improved, and there are "solid underlying growth drivers" in each of its target markets.
"Our strong financial position, with a healthy cash balance, tangible assets and no borrowings provides us with the confidence to continue to invest in the expansion of our business. Trading in the second half of the year has begun well and we are confident of a full-year advance in both revenues and profitability," said Group Managing Director Chris Gurry in a statement.
Shares in CML were up 6.0% at 384.20 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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