9th Jun 2015 08:02
LONDON (Alliance News) - CML Microsystems PLC Tuesday expressed confidence it will move back into growth in its current financial year, as it posted a decline in pretax profit for its recently ended financial year, saying that whilst results were down on the previous year they were slightly ahead of its revised expectations.
CML Microsystems makes semiconductor products primarily for the communication and data storage markets.
For the year to end-March, the company posted a pretax profit of GBP2.7 million, down from GBP4.8 million a year before, as revenue declined to GBP21.8 million from GBP24.4 million.
In the first half of the year, revenue was hit by the lingering effect of a key customer exiting the embedded storage market and by merger and acquisition activity disrupting its supply chain towards the second half of the previous year. However, CML cited a 13% rise in sales in its second half of the current year as demonstrative that the disruption of the previous year had "less influence as the year progressed."
A number of customer end products have entered into production in the current financial year, and are expected to ramp up as the year progresses, CML said.
CML Microsystems proposed a final and total dividend of 6.9 pence, up from 6.25 pence a year before.
"With the benefit of hindsight, it is good to have the disruption largely behind us and report that we were able to deliver against our management objectives while at the same time making satisfying progress with our medium term growth plans," said Managing Director Chris Gurry in a statement.
"The board is confident that the group will continue to be prosperous and that a meaningful advance in revenue and profitability is likely to be made over the coming year," Gurry added.
Shares in CML Microsystems are trading down 7.2% at 362.00 pence Tuesday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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