9th Jun 2020 10:17
(Alliance News) - CML Microsystems PLC on Tuesday said profit more than halved in its most recent financial year with both its Communication and Storage businesses posting lower revenue, though Storage fared worse.
The Essex-headquartered semiconductor designer and manufacturer reported a GBP1.4 million pretax profit for its financial year ended March 31, less than half the prior year's GBP3.0 million profit.
Revenue fell 6.0% to GBP26.4 million from GBP28.1 million, including a 1.3% fall in Communication revenue to GBP15.0 million and 12% drop in Storage revenue to GBP11.4 million. Meanwhile, distribution and administration costs rose slightly to GBP18.8 million from GBP18.1 million.
A final dividend of 2.0 pence per share has been recommended, equating to a 4.0p per share dividend for financial 2020. This compares to a 7.8p per share dividend for financial 2019. CML said the payout reduction "reflects prudence in light of Covid-19 environment".
Managing Director Chris Gurry said: "There is no hiding from the fact that the year under review has been difficult, and the current environment is delaying realisation of the benefits to come from the hard work taking place behind the scenes.
"The current financial year did commence with a healthier order book than the prior year, although it remains to be seen how this translates to actual market consumption as there may be an element attributable to Covid-19 related supply concerns amongst the customer base.
"Nevertheless, following the operational adjustments made across the prior year, the business is tuned to react swiftly to a revival in demand and the board remain convinced that a return to growth will be secured as conditions improve."
Shares in CML Microsystems were untraded on Tuesday morning, having last closed at 272.00p.
By Anna Farley; [email protected]
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