REG - CML Microsystems PLC - Half Year Results
19/11/2024 07:00
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RNS Number : 6930M CML Microsystems PLC 19 November 2024
19 November 2024
CML Microsystems Plc
("CML", the "Company" or the "Group")
Half Year Results
Resilient trading and operational progress in challenging market conditions
CML Microsystems Plc which develops mixed-signal, RF and microwave
semiconductors for global communications markets, today announces its
unaudited results for the six months ended 30 September 2024.
Financial Highlights
· Revenue increased by 18% to £12.53m (HY FY24: £10.58m) including a
contribution of approximately £3.50m from products associated with the MwT
acquisition
· Profit from operations of £0.58m (H1 FY24: £1.61m) and a profit before tax
of £0.82m (H1 FY24: £1.87m)
· Basic earnings per share(2) of 4.34p (HY FY24: 9.44p)
· Strong cash balances at period end of £14.98m(1) (30 March 2024: £18.21m)
· The Board is declaring an interim dividend of 5p per ordinary share (HY FY24:
5p per share)
Operational Highlights
· Expansion into new, adjacent market segments with R&D focused on new
product developments to target a wider customer base, including several new
product releases
· Successful post-acquisition integration of MwT, with increased marketing and
support activities around the enlarged product portfolio
· Industry-wide challenges remain in the short term, but expansion into
microwave, millimetre wave and broadcast radio sectors underway and the Group
remains well positioned as conditions improve
1. Net cash is the total of cash, cash equivalents and short-term
deposits see note 7.
2. Basic earnings per share reconciliation see note 6.
Chris Gurry, Managing Director of CML Microsystems Plc, commented on the
results:
"The progress we've made this period despite the ongoing headwinds in some
industrial markets showcases the resilience and adaptability of our business
model. We continue to expand our market position as we navigate industry-wide
challenges by diversifying and innovating our product portfolio to target
adjacent markets that offer the most potential. Long-term customer
relationships with blue-chip organisations remain strong, underscoring our
reputation as a trusted technology partner.
While market conditions remain subdued in the near term, our ongoing
investments, strategic initiatives and a strong balance sheet lay the
foundations on which to build sustained, meaningful growth in the medium
term."
Enquiries:
CML Microsystems Plc www.cmlmicroplc.com (http://www.cmlmicroplc.com/)
Tel: +44 (0) 1621 875 500
Chris Gurry, Group Managing Director
Nigel Clark, Non-Executive Chairman
Shore Capital (Nominated Adviser and Broker) Tel: +44 (0) 20 7408 4090
Toby Gibbs
James Thomas
Lucy Bowden
Fiona Conroy (Corporate Broking)
Alma Tel: +44 (0)20 3405 0205
Josh Royston
Andy Bryant
Robyn Fisher
Emma Thompson
About CML Microsystems PLC
CML develops mixed-signal, RF and microwave semiconductors for global
communications markets. The Group utilises a combination of outsourced
manufacturing and in-house testing with trading operations in the UK, Asia and
USA. CML targets sub-segments within Communication markets with strong growth
profiles and high barriers to entry. It has secured a diverse, blue chip
customer base, including some of the world's leading commercial and industrial
product manufacturers.
Growth in its end markets is being driven by factors such as the appetite for
data to be transmitted faster and more securely, the upgrading of telecoms
infrastructure around the world and the growing prevalence of private
commercial wireless networks for voice and/or data communications linked to
the industrial internet of things (IIoT).
The Group is cash-generative, has no debt and is dividend paying.
Chief Executive's review
Overview
The first six months of the financial year to 31 March 2025 has seen the
Company make steady operational progress on several fronts. We are pleased by
the resilience of our business model and the strategic progress made, despite
the relative softness within some of the industrial markets addressed and
ongoing customer inventory management dynamics. CML's market position has been
expanded into new, adjacent market segments with an increased product-set
thereby increasing the business' growth potential; important groundwork has
been laid to build upon.
The post-acquisition integration of MwT has continued, with increased
marketing and support activities around the enlarged product portfolio. As a
new entrant to some end markets, particular attention is being paid to
promoting awareness of CML as a proven and reliable technology partner. The
Group's existing blue-chip customer base is assisting that process in
conjunction with a continual focus on new customer reach, opportunity pipeline
growth and enhancements to the sales channel network.
Research & development activities have been focused on new product
developments to serve wider market access along with specific programmes to
ensure security of supply for a selection of the more established key
products. New product announcements included:
· formal production availability of the DRM1000 - a complete Digital Radio
Mondiale (DRM) broadcast receiver implementation, consuming 80% less power
than other commercially available receivers;
· the launch of a millimetre-wave gallium nitride (GaN) power amplifier that
represents a cost-effective building block, primarily aimed at applications
such as commercial high-volume satellite communication terminals; and
· 2W gallium arsenide (GaAs) MMIC power amplifier optimised for specific
performance and reliability technical characteristics that make it an ideal
choice for radio frequency identification (RFID) readers, smart metering and
other IoT wireless devices
These product releases are targeted at new customers in adjacent communication
market sectors, each representing significant growth opportunities.
The Group has R&D capabilities across multiple sites and, following a
strategic review earlier in the year, the decision has been made to perform a
restructuring within the UK team to facilitate streamlined collaboration,
resource sharing and increased productivity. The process is expected to be
complete by the end of the current financial year and further detail will be
provided at the time of the full year results.
There have been disappointing delays in obtaining local US government building
permits that are needed to unlock efficiency improvements and cost reductions
within the Group's Silicon Valley-based facilities. The first half results
include elevated costs relating to those delays with additional expenses
stretching into the second half. Whilst it is not possible to put a definitive
date on a resolution, current expectations are for the situation to be
resolved by the end of the calendar year.
To summarise, multi-year investments have positioned us well for expansion
with operational tweaks continuing to be made. The traditional voice and data
centric markets are temporarily challenging but as a sole source supplier and
supported by regular customer dialogue, we are confident that it is an
industry wide problem. Expansion into microwave, millimetre wave and now
broadcast radio sectors is underway and we remain very well placed as
conditions improve.
Financial summary
Revenues for the first half of the financial year climbed 18% to £12.53m (H1
FY24: £10.58m), including a contribution of approximately £3.50m from
products associated with the MwT acquisition. Geographically, sales into the
Far East fell by close to 10% against the prior year comparable period,
largely due to the previously reported environment in China. However,
increases of 28% and 137% were recorded from the Americas and Europe
respectively, where the Group is now shipping products into new application
areas including fixed wireless backhaul, test & measurement and radar. The
overall product mix delivered a gross profit of £8.74m (H1 FY24: £7.94m).
The maiden inclusion of MwT in the opening six-month period drove an increase
in expenses against the prior year equivalent. One-off costs associated with
US national security compliance activities and a loss on foreign exchange also
contributed, leading to an overall rise in distribution and administration
costs to £7.98m (H1 FY24: £6.32m).
The Group delivered a profit from operations of £0.58m (H1 FY24: £1.61m) and
a profit before tax of £0.82m (H1 FY24: £1.87m).
The Board is declaring an interim dividend of 5.0p per ordinary share (H1
FY24: 5.0p), payable on 13 December 2024 to shareholders on the register on 29
November 2024.
As planned, stock levels have increased, predominantly at the raw material
level. This is partly due to the inclusion of MwT from October 2023, but also
in line with the strategic initiative to ensure continuity of supply in what
continues to be an uncertain global environment. At 30 September 2024,
inventory levels stood at £4.77m (31 March 2024: £3.67m). As noted in the
Company's AGM statement on 13 August 2024, an improvement in customer
inventory levels is anticipated during the second half of the financial year.
The balance sheet remains strong, with no debt, and disciplined cash
management contributed to cash/cash equivalents totalling £14.98m at 30
September 2024 (30 March 2024: £18.21m). This follows cash outflows,
totalling £5.01m arising from a combination of MwT acquisition stage payments
(£0.96m), a final dividend (£0.96m), the purchase of Company shares for
treasury (£0.45m) and investment in research and development costs of
£2.64m. Further cash payments totalling £2.27m, in relation to the MwT
acquisition, fall due in the second half of the year.
Property
Having been granted, in February 2023, planning permission on excess land at
the Group's Essex Headquarters site, Oval Park, the land has been placed on
the market for sale. It is the Group's intention to dispose of all surplus
land and property that is outside of its operational needs. This also includes
a vacant commercial property in Fareham, Hampshire. These one-off transactions
are subject to attractive terms being achieved.
Current trading & outlook
We are pleased with the resilience of our business model, which against a
backdrop of industrial market softness and stubbornly elevated customer
inventory levels, is expected to deliver revenues in line with market
expectations. We have made good operational progress in the half, and the
Group's growth prospects have been enhanced through its investments and entry
into additional market sectors with an expanded product set.
That being said, given the investment efforts to unlock future financial and
operational gains alongside the protracted US building permit process and
related costs, if the current trading environment persists, it will become
challenging to meet management's full year expectations for trading
profitability.
An additional consideration is that opportunities may present themselves in
the meantime to realise exceptional benefits from the Group's non-operational
property assets and discussions are ongoing. This adds to the variability of
profit outcomes.
The Board is confident that the Company is well placed to deliver meaningful
growth over the medium term as our growing product portfolio meets the
increasingly complex needs of industrial communications. Whilst external
pressures outside of our control remain frustrating, the operational decisions
being taken, continuing investments and considerable effort expended will
drive future performance.
Chris Gurry
Group Managing Director
19 November 2024
Condensed consolidated income statement
for the six months ended 30 September 2024
Unaudited Unaudited Audited
6 months end 6 months end year end
30/09/24 30/09/23 31/03/24
£'000 £'000 £'000
Continuing operations
Revenue 12,530 10,575 22,893
Cost of sales (3,786) (2,631) (6,683)
Gross profit 8,744 7,944 16,210
Distribution and administration costs (7,983) (6,318) (14,226)
Share-based payments (159) (103) (214)
602 1,523 1,770
Other operating income (27) 85 173
Profit from operations 575 1,608 1,943
Other income 14 50 62
Finance income 274 235 547
Finance expense (48) (20) (37)
Profit before taxation 815 1,873 2,515
Income tax charge (118) (406) (455)
Profit after taxation for period attributable to equity owners of the parent 697 1,467 2,060
All financial information presented relates to continuing activities.
Earnings per share from total operations attributable to the ordinary equity
holders of the Company:
Basic earnings per share 4.34p 9.44p 13.00p
Diluted earnings per share 4.32p 9.31p 12.86p
The following measure is considered an alternative performance measure, not a
generally accepted accounting principle. This ratio is useful to ensure that
the level of borrowings in the business can be supported by the cash flow in
the business. For definition and reconciliation see note 8.
Adjusted EBITDA 2,876 3,230 5,703
Condensed consolidated statement of total comprehensive income
for the six months ended 30 September 2024
Unaudited Unaudited Audited
6 months end 6 months end year end
30/09/24 30/09/23 31/03/24
£'000 £'000 £'000
Profit for the period 697 1,467 2,060
Other comprehensive income/(expense):
Items that will not be reclassified subsequently to profit or loss:
Re-measurement of benefit obligation - - (361)
Deferred tax on actuarial gain - - 90
Items reclassified subsequently to profit or loss upon derecognition:
Foreign exchange differences (1,030) (493) (1,153)
Other comprehensive income for the period net of taxation attributable to the (1,030) (493) (1,424)
equity holders of the parent
Total comprehensive income for the period attributable to the equity holders (333) 974 636
of the parent
Condensed consolidated statement of financial position
as at 30 September 2024
Unaudited Unaudited Audited
30/09/24 30/09/23 31/03/24
£'000 £'000 £'000
Assets
Non-current assets
Goodwill 13,853 7,152 14,449
Other intangible assets 2,942 885 3,350
Development costs 16,022 14,391 15,150
Property, plant and equipment 5,643 6,087 5,655
Right-of-use assets 2,269 910 813
Deferred tax assets 733 618 788
41,462 30,043 40,205
Current assets
Property, plant and equipment - held for sale 1,124 - 1,124
Investment properties - held for sale 1,975 1,975 1,975
Inventories 4,768 2,187 3,672
Trade receivables and prepayments 3,354 2,881 3,734
Current tax assets 303 71 190
Cash and cash equivalents 9,145 14,300 11,262
Short-term cash deposits 5,834 6,646 6,951
26,503 28,060 28,908
Total assets 67,965 58,103 69,113
Liabilities
Current liabilities
Trade and other payables 6,268 2,230 7,528
Provisions 196 - 208
Lease liabilities 385 198 219
Current tax liabilities 127 4 16
6,976 2,432 7,971
Non-current liabilities
Deferred tax liabilities 5,279 4,450 5,224
Trade and other payables 2,509 - 2,509
Lease liabilities 2,003 751 637
Retirement benefit obligation 1,696 1,204 1,696
11,487 6,405 10,066
Total liabilities 18,463 8,837 18,037
Net assets 49,502 49,266 51,076
Capital and reserves attributable to equity owners of the parent
Share capital 825 796 825
Share premium 2,264 2,327 2,327
Capital redemption reserve 8,372 8,372 8,372
Other reserve 3,073 - 3,073
Treasury shares - own share reserve (2,143) (1,822) (1,822)
Share-based payments reserve 814 566 666
Foreign exchange reserve (1,141) 549 (111)
Retained earnings 37,438 38,478 37,746
Total shareholders' equity 49,502 49,266 51,076
Condensed consolidated cash flow statement
for the six months ended 30 September 2024
Unaudited Unaudited Audited
6 months end 6 months end year end
30/09/24 30/09/23 31/03/24
£'000 £'000 £'000
Operating activities
Profit for the period before taxation 815 1,873 2,515
Adjustments for:
Foreign exchange movement (68) - (140)
Depreciation - on property, plant and equipment 269 239 520
Depreciation - on right-of-use assets 444 111 486
Amortisation of development costs 1,159 1,020 2,110
Amortisation of intangibles recognised on acquisition and purchased 256 99 368
Profit on disposal of fixed assets - - 5
Movement in non-cash items (retirement benefit obligation) 90 90 131
Share-based payments 159 103 214
Finance income (274) (235) (547)
Finance expense 48 20 37
Movement in working capital (1,016) (1,381) (1,966)
Cash flows from operating activities 1,882 1,939 3,733
Income tax (paid)/received (119) 1,483 1,311
Net cash flows from operating activities 1,763 3,422 5,044
Investing activities
Purchase of property, plant and equipment (264) (597) (1,524)
Investment in development costs (2,057) (1,666) (3,541)
Repayment/(investment) in fixed term deposits (net) 1,117 (5,428) (5,733)
Acquisition of subsidiary (net of cash acquired) (956) - (565)
Investment in intangibles - (32) (32)
Finance income 274 235 547
Net cash outflow investing activities (1,886) (7,488) (10,848)
Financing activities
Lease liability repayments (403) (122) (502)
Issue of ordinary shares (net of expenses) 63 117 117
Purchase of own shares for treasury (446) (1,750) (1,750)
Dividends paid to shareholders (961) (932) (1,739)
Finance expense (10) - (4)
Net cash outflow from financing activities (1,757) (2,687) (3,878)
Decrease in cash, cash equivalents and short-term cash deposits (1,880) (6,753) (9,682)
Movement in cash and cash equivalents:
At start of period/year 11,262 21,041 21,041
Decrease in cash, cash equivalents and short-term cash deposits (1,880) (6,753) (9,682)
Effects of exchange rate changes (237) 12 (97)
At end of period 9,145 14,300 11,262
Cash flows presented exclude sales taxes. Further cash-related disclosure
details are provided in note 7.
Changes in liabilities arising from financing activities relate to lease
liabilities only.
Condensed consolidated statement of changes in equity
for the six months ended 30 September 2024
Capital Share- Foreign
Share Share redemption Other Treasury based exchange Retained
capital premium reserve reserve shares payments reserve earnings Total
Unaudited £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 31 March 2023 796 2,462 8,372 - (324) 488 1,042 37,918 50,754
Profit for period 1,467 1,467
Other comprehensive income net of taxes
Foreign exchange differences (493) (493)
Total comprehensive income for the period - - - - - - (493) 1,467 974
796 2,462 8,372 - (324) 488 549 39,385 51,728
Transactions with owners in their capacity as owners
Issue of treasury shares (135) 252 117
Purchase of own shares - treasury (1,750) (1,750)
Dividend paid (932) (932)
Total of transactions with owners in their capacity as owners - (135) - - (1,498) - - (932) (2,565)
Share-based payments 103 103
Cancellation/transfer of share-based payments (25) 25 -
At 30 September 2023 796 2,327 8,372 - (1,822) 566 549 38,478 49,266
Profit for period 593 593
Other comprehensive income net of taxes
Foreign exchange differences (660) (660)
Re-measurement of defined benefit obligations (361) (361)
Deferred tax on actuarial loss 90 90
Total comprehensive income for the period - - - - - - (660) 322 (338)
796 2,327 8,372 - (1,822) 566 (111) 38,800 48,928
Transactions with owners in their capacity as owners
Issue of ordinary shares - acquisition 29 3,073 3,102
Dividend paid (807) (807)
Total of transactions with owners in their capacity as owners 29 - - 3,073 - - - (807) 2,295
Share-based payment charge 111 111
Deferred tax on share-based payments (258) (258)
Cancellation/transfer of share-based payments (11) 11 -
At 31 March 2024 825 2,327 8,372 3,073 (1,822) 666 (111) 37,746 51,076
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY continued
for the six months ended 30 September 2024
Capital Share- Foreign
Share Share redemption Other Treasury based exchange Retained
capital premium reserve reserve shares payments reserve earnings Total
Unaudited £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000
At 31 March 2024 825 2,327 8,372 3,073 (1,822) 666 (111) 37,746 51,076
Profit for period 697 697
Other comprehensive income net of taxes
Foreign exchange differences (1,030) (1,030)
Total comprehensive income for the period - - - - - - (1,030) 697 (333)
825 2,327 8,372 3,073 (1,822) 666 (1,141) 38,443 50,743
Transactions with owners in their capacity as owners
Issue of treasury shares (63) 124 61
Purchase of own shares - treasury (445) (445)
Dividend paid (961) (961)
Total of transactions with owners in their capacity as owners - (63) - - (321) - - (961) (1,345)
Share-based payments 159 159
Deferred tax on share-based payments (55) (55)
Cancellation/transfer of share-based payments (11) 11 -
At 30 September 2024 825 2,264 8,372 3,073 (2,143) 814 (1,141) 37,438 49,502
Notes to the condensed consolidated financial statements
for the six months ended 30 September 2024
1 Basis of preparation and approval of interim statements
The financial information for the six months ended 30 September 2024 and for
the six months ended 30 September 2023 is unaudited.
The interim financial statement for the six months to 30 September 2024 does
not include all of the information required for full annual financial
statements and should be read in conjunction with the consolidated financial
statements for the year ended 31 March 2024.
The financial information has been prepared on the basis of UK adopted
international accounting standards (IFRSs) that the Directors expect to be
applicable as at 31 March 2025.
The accounting policies adopted in the preparation of the interim financial
statements are consistent with those set out in the Group's Annual Report and
Financial Statements 2024, which were prepared in accordance with IFRSs.
This interim financial statement does not comprise statutory accounts within
the meaning of Section 435 of the Companies Act 2006. Statutory accounts for
the year ended 31 March 2024 were approved by the Board on 1July 2024 and
delivered to the Registrar of Companies. The report of the auditor on those
accounts was unqualified, did not contain an emphasis of matter paragraph and
did not contain any statement under Section 498(2) or Section 498(3) of the
Companies Act 2006.
AIM-quoted companies are not required to comply with IAS 34 'Interim Financial
Reporting' and accordingly the Company has not applied this standard in
preparing this report.
The interim financial statement were approved by the Board of Directors on 19
November 2024.
2 Segmental analysis
Reported segments and their results, in accordance with IFRS 8, are based on
internal management reporting information that is regularly reviewed by the
Group Managing Director, who is the Chief Operating Decision Maker. The
measurement policies the Group uses for segmental reporting under IFRS 8 are
the same as those used in its financial statements.
The Group is focused for management purposes on one primary reporting segment,
being the semiconductor segment, with similar economic characteristics, risks
and returns, and the Directors therefore consider there to be one single
segment, being semiconductor components for the communications industry.
Geographical segments (by origin)
Unaudited Unaudited Audited
6 months end 6 months end year end
30/09/24 30/09/23 31/03/24
£'000 £'000 £'000
Revenue to third parties
UK 618 2,613 5,546
Americas 5,983 1,243 5,802
Far East 5,929 6,719 11,545
Total 12,530 10,575 22,893
Unaudited Unaudited Audited
6 months end 6 months end year end
30/09/24 30/09/23 31/03/24
£'000 £'000 £'000
Total assets
UK 51,597 44,942 53,961
Americas 5,747 1,512 4,473
Far East 10,621 11,649 10,679
Total 67,965 58,103 69,113
3 Revenue
The geographical classification of business turnover (by destination) is as
follows:
Unaudited Unaudited Audited
6 months end 6 months end year end
30/09/24 30/09/23 31/03/24
£'000 £'000 £'000
Europe 2,713 2,115 4,895
Far East 6,003 6,660 11,754
Americas 3,486 1,471 5,524
Other 328 329 720
12,530 10,575 22,893
The operational classification of business turnover (by market) is as
follows:
Unaudited Unaudited Audited
6 months end 6 months end year end
30/09/24 30/09/23 31/03/24
£'000 £'000 £'000
Semiconductor 12,325 10,166 21,891
Design and development 205 409 1,002
12,530 10,575 22,893
Semiconductor products, goods and services are transferred at a point in time
whereas design and development revenue is transferred over the period of the
contract on a percentage basis of contract completion, as detailed in the
Group's revenue recognition policy within its published Annual Report.
The Group does not have any contract assets or liabilities at 30 September
2024 (£Nil at 31 March 2024) from semiconductors as it does not fulfil any of
its performance obligations in advance of invoicing to its customer. The Group
has contract assets of £25,000 as at 30 September 2024 (£76,000 at 31 March
2024) from design and development and contract liabilities of £Nil as at 30
September 2024 (£Nil at 31 March 2024) from design and development. The Group
has contractual balances in the form of trade receivables. See note 20 for
disclosure of this in the Annual Report and Accounts for the year ended 31
March 2024.
The Group expects all contractual costs capitalised or any outstanding
performance obligations will be completed within the next twelve months.
4 Dividend paid and interim dividend
The Board is declaring an interim dividend of 5p per ordinary share for the
half year ended 30 September 2024, payable on 13 December 2024 to shareholders
on the Register on 29 November 2024.
A final dividend of 6p per ordinary share was paid on 16 August 2024 and an
interim dividend of 5p per ordinary share was paid on 12 January 2024,
totalling 11p per ordinary share paid for the year ended 31 March 2024 (2023:
11p per ordinary share paid for the year ended 31 March 2023).
5 Income tax expense/(credit)
Unaudited Unaudited Audited
6 months end 6 months end year end
30/09/24 30/09/23 31/03/24
£'000 £'000 £'000
Current tax
UK corporation tax on results of the period/year (121) (9) (155)
Adjustment in respect of previous years 2 101 114
(119) 92 (41)
Foreign tax on results of the period/year 149 139 215
Total current tax 30 231 174
Deferred tax
Deferred tax - origination and reversal of
temporary differences
70 153 259
Adjustments to deferred tax charge in
respect of previous years
18 22 22
Total deferred tax 88 175 281
Tax expense on profit on ordinary activities 118 406 455
The Directors consider that tax will be payable at varying rates according to
the country of incorporation of its subsidiary undertakings and have provided
on that basis.
The tax charge for the six months ended 30 September 2024 has been calculated
by applying the effective tax rate which is expected to apply to the Group for
the year ending 31 March 2025, using rates substantially enacted by 30
September 2024.
6 Earnings per share
Unaudited Unaudited Audited
6 months end 6 months end year end
30/09/24 30/09/23 31/03/24
£'000 £'000 £'000
Earnings per share from total operations attributable to the ordinary equity
holders of the Company
Basic earnings per share 4.34p 9.44p 13.00p
Diluted earnings per share 4.32p 9.31p 12.86p
The calculation of basic and diluted earnings per share is based on the profit
attributable to ordinary shareholders divided by the weighted average number
of shares in issue during the year, as explained below:
Ordinary 5p shares
Weighted
average Diluted
number number
Six months ended 30 September 2024 16,047,329 16,141,190
Six months ended 30 September 2023 15,546,906 15,765,610
Year ended 31 March 2024 15,842,911 16,016,767
7 Cash, cash equivalents and short-term deposits
Unaudited Unaudited Audited
6 months end 6 months end year end
30/09/24 30/09/23 31/03/24
£'000 £'000 £'000
Cash on deposit 2,176 3,016 3,095
Cash at bank 6,969 11,284 8,167
9,145 14,300 11,262
Short-term cash deposits 5,834 6,646 6,951
14,979 20,946 18,213
8 Adjusted EBITDA
Adjusted earnings before interest, tax, depreciation and amortisation
('Adjusted EBITDA') is defined as profit before taxation and before all
interest, tax, depreciation and amortisation charges and before share-based
payments. The following is a reconciliation of the Adjusted EBITDA for the
three periods presented:
Unaudited Unaudited Audited
6 months end 6 months end year end
30/09/24 30/09/23 31/03/24
£'000 £'000 £'000
Profit before taxation (earnings) 815 1,873 2,515
Adjustments for:
Finance income (274) (235) (547)
Finance expense 48 20 37
Depreciation 269 239 520
Depreciation - right-of-use assets 444 111 486
Amortisation of development costs 1,159 1,020 2,110
Amortisation of intangibles of purchased and acquired intangibles recognised
on
acquisition 256 99 368
Share-based payments 159 103 214
Adjusted EBITDA 2,876 3,230 5,703
9 Acquisition of Microwave Technology Inc.
The Company announced on 2 October 2023 that it had successfully completed the
acquisition of Microwave Technology Inc for a total consideration of $13.18m,
of which $7.65m was payable in cash and $5.53m is payable in shares. The
acquisition was not previously reported in the unaudited accounts ended 30
September 2023. In the audited accounts ended 31 March 2024 this was reported
as an acquisition.
The acquisition expands the Group's product portfolio, strengthens and
enhances its support resources and increase its R&D capabilities,
providing essential knowhow and experience in system level understanding,
product manufacturing and packaging techniques. MwT's products are
complementary to CML's existing offering.
Further information can be found in the Annual Report and Accounts ended 31
March 2024 which can be reviewed on the Company website: www.cmlmicroplc.com
(http://www.cmlmicroplc.com) or obtained from Companies House.
10 General
Other than already stated within the Chief Executive's Review, there have been
no important events during the first six months of the financial year that
have impacted this Half Yearly Report.
There have been no related party transactions or changes in related party
transactions described in the latest Annual Report that could have a material
effect on the financial position or performance of the Group in the first six
months of the financial year.
The Company has appointed Cooper Parry Group Limited as its new auditor's
replacing BDO LLP who have formally resigned and have not notified the Company
of any reasons or matters connected with their ceasing to hold office as
auditors. Cooper Parry will conduct the audit of the Company's financial
statements for the financial year to 31 March 2025.
The auditor's report on those accounts did not contain a statement under
Section 498(2) or (3) of the Companies Act 2006. This Half Yearly Report has
not been audited by the Group auditor.
A copy of this Half Yearly Report can be viewed on the Company website:
www.cmlmicroplc.com.
11 Approvals
The Directors approved this Half Yearly Report on 19 November 2024.
Glossary
5G Fifth Generation
Cellular Network Technology
AIM Alternative Investment
Market
AMR Automatic Meter Reading
DRM Digital Radio Mondiale
EBITDA Earnings before interest, tax,
depreciation and amortisation
EPS Earnings per share
FY Full Year
GaAs Gallium Arsenide
GaN Gallium Nitride
H1 First Half (Financial
Year)
IAS International Accounting
Standards
IC Integrated Circuit
IFRS International Financial
Reporting Standards
IIoT Industrial Internet of
Things
IoT Internet of Things
LMR Land Mobile Radio
M2M Machine to Machine
MMIC Monolithic Microwave Integrated
Circuit
PMR Private Mobile Radio
R&D Research and Development
RF Radio Frequency
RFID Radio Frequency
Identification
CML Microsystems Plc
Oval Park, Langford
Maldon, Essex
CM9 6WG
T: +44 (0)1621 875500
F: +44 (0)1621 875606
group@cmlmicroplc.com
Visit us online at
www.cmlmicroplc.com
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