19th Nov 2019 11:39
(Alliance News) - CML Microsystems PLC on Tuesday reported a sharp drop in interim profit, blaming an "extended difficult trading environment".
In the six months ended September 30, the radio frequency semiconductor manufacturer's pretax profit more than halved to GBP907,000 from GBP2.4 million the year before.
Revenue slipped 13% to GBP13.1 million from GBP15.1 million.
The company's distribution costs rose 3.4% to GBP9.1 million from GBP8.8 million.
"The extended difficult trading environment remains a frustration although the business continues to execute operationally with a keen focus on converting the growing pipeline of opportunities into sustainable revenue growth," said Managing Director Chris Gurry.
CML declared an interim dividend of 2.0 pence per share, unchanged on the year before.
Looking ahead, CML expects a sequential improvement in sales revenue in the second half, based on a favourable product mix and "tight" cost control.
Gurry continued: "Indications from our end markets continue to suggest that we will flourish as conditions normalise and customers go to market with products based upon our expanded portfolio of semiconductor solutions. Whilst the timing of that is difficult to predict, for our customers as much as it is for ourselves, we do anticipate a clearer picture to emerge early in the new calendar year."
Shares in CML Microsystems were untraded in London on Tuesday at 311.80 pence each.
By Paul McGowan; [email protected]
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