20th Nov 2018 11:13
LONDON (Alliance News) - Semiconductors maker CML Microsystems PLC on Tuesday posted a slight rise in interim profit on the back of property disposal gains and said that annual outcome is likely to be in line with market views.
Shares in CML were 8.7% lower at 421.00 pence on Tuesday.
For the six months ended September, pretax profit increased 2.6% to GBP2.37 million from GBP2.31 million the year prior. This was despite revenue falling 5.6% to GBP15.1 million against a "strong" comparator of GBP16.0 million the year before.
Profit performance was supported by a GBP222,000 profit on the sale of a property during the period as well as a fall in costs alongside the revenue dip.
"Despite the well-publicised global supply constraints, I am pleased to be able to report a strong set of results for the first half of the year", CML Managing Director Chris Gurry said.
"Profits grew through the first half year period and an underlying indicator for future growth, namely the pipeline of opportunity, has risen nicely," Gurry explained. "The combined effects of extended raw material lead times and NAND flash market dynamics along with customer purchasing patterns uncertainty created around ongoing trade issues between China and the USA, continues to affect progress. The group is focussed on operational activities to mitigate some of these effects where possible."
CML held its interim dividend per share flat at 2.0 pence per share. Net cash dipped to GBP13.5 million from GBP13.8 million six months earlier.
"It currently looks challenging for second half revenues to show material improvement over the first six months although at the profit before tax level, the impact is expected to be less pronounced due to the anticipated product mix," Gurry continued. "Therefore, a full year advance in profitability remains likely, in-line with market expectations."
"With a growing number of customer products reaching production, the board is confident that meaningful advances will be made as end market dynamics normalise and remains excited about the group's future prospects", Gurry added.
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