CML Microsystems returns to profitable growth

Semiconductor designer and manufacturer CML Microsystems announced its results for the year to 31 March on Tuesday, revealing a return to profitable growth as it released new products across its target segments during the period.

The techMARK firm said the company also continued to make significant investments in new product development and operational improvements during the year, to ensure the profitable growth trajectory could be sustained in the current year and beyond.

It reported group revenue growth to £22.83m, from £21.8m a year earlier, with gross profit rising to £16.25m from £15.47m.

Profit before tax was £3.32m, up marginally from £3.18m, with basic earnings per share improving 8% to 18.03p, compared with 16.71p in 2015.

The board increased its final dividend to 7p, from 6.9p, with net cash increased to £13.6m and no debt, compared with £13.19m.

“Financial year 2016 represented a steady period of organic progress and delivered a return to sales and profit growth, as expected,” said CML group managing director Chris Gurry.

“It was a record year of R&D investment, with an amount equal to 27% of group turnover invested in new products that will ultimately position the group to increase its market share.”

“New ICs that were launched during the year offered either enhanced performance or closed a gap in the existing product range,” he added.

Gurry said that over the current year, the board expects a further advance in revenues and profitability and a continuing pipeline of new semiconductor solutions that address a wider range of end-customer requirements and additional market areas.

“Our goal is to be the first choice key component supplier within our chosen end-markets.”