REG - CML Microsystems PLC - Trading Update

CML MicrosystemsAnnouncement

27/03/2025 12:45

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RNS Number : 5467C  CML Microsystems PLC  27 March 2025

27 March 2025

CML Microsystems Plc

("CML", the "Company" or the "Group")

Trading Update

CML today announces a trading update for the year ended 31 March 2025.

The market environment through the second half of the financial year continued
to be challenging, with the softness from industrial markets persisting,
particularly affecting established customers for the Groups anchor products.
Nevertheless, good progress has been made with expanding the opportunity
pipeline for the enlarged product portfolio and there are encouraging signs
that we may be at, or very near, the bottom of the inventory correction that
has featured strongly across recent reporting periods.

Operationally, the Group is pleased to report that the US Silicon Valley team
has just completed its relocation to a new, smaller facility. This follows a
protracted period whereby the Group was incurring additional expense while
awaiting the issue of the relevant building permits to allow planned
refurbishment to take place and the move to be completed.

From a trading perspective, revenue for the full year to 31 March 2025 will
comprise a product mix quite different from that originally envisaged, with
SµRF products making a higher contribution than expected and the core product
range somewhat less. Total revenue is now expected to be broadly flat against
the prior year. The combined effect of product mix and temporarily elevated US
running costs resulted in a second half trading period that was only
marginally profitable, which is below market expectations. EBITDA is expected
to exceed £5m, with a net cash balance of just over £9m being ahead of the
planned level when ad hoc share-buybacks of circa £0.9m are taken into
account. The FY25 EBITDA estimate excludes an exceptional goodwill write-off
associated with the restructuring of the UK R&D team, as communicated at
the time of the interim results in November 2024.

In recent years, the Group has significantly expanded its semiconductor
product portfolio, both organically and through acquisition. These innovative
solutions have shown early positive signs of market acceptance, evidenced by
strong growth in the opportunity pipeline. We are confident that they will
drive future growth, and through the ongoing penetration of adjacent markets,
help mitigate the impact of demand fluctuations across some of the Group's
traditional end-market areas. Our global teams remain focused on accelerating
the launch and promotion of these new products, and we are actively investing
in R&D to ensure we remain well-positioned moving forward.

While the short-term outlook remains subdued, our strategic focus on
innovation and product diversification will pave the way for recovery and
growth in the coming periods.

The Group will release its preliminary full year results on Tuesday 24 June
2025.

 

 CML Microsystems Plc

  Tel: +44(0)1621 875 500
 Chris Gurry, Group Managing Director

Nigel Clark, Non-Executive Chairman

 Shore Capital                           Tel: +44(0)20 7408 4090

 Toby Gibbs

 James Thomas

 Lucy Bowden

 Fiona Conroy (Corporate Broking)

 Alma Strategic Communications           Tel: +44 (0)20 3405 0212

 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.

 

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