REG - CML Microsystems PLC - Trading Statement

CML MicrosystemsAnnouncement

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RNS Number : 9149Y  CML Microsystems PLC  01 April 2026

1 April 2026

CML Microsystems Plc

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

Trading Update

Second half sees revenue momentum and an improved loss from operations

CML, which develops mixed-signal, RF and microwave semiconductors for global
communications markets, today announces a trading update for the year ended 31
March 2026.

As outlined in November in the Company's half-year results statement, we
anticipated material sequential revenue growth in the second half and a return
to pre-exceptional operating profitability driven by an improving order intake
momentum. We were pleased that in the second half, revenue grew by circa 18%
compared to H1 FY26 and was also ahead of H2 FY25.  Full-year revenues are
therefore expected to exceed £20m.

Although encouraging, the phasing of this order intake momentum has been more
extended than first anticipated. The resulting revenue mix has reduced our
second half operating margin due to a greater share of lower‑margin
non‑recurring engineering (NRE) income, predominantly associated with the
GNSS contract announced in July 2025.  As planned, the Group continued to
invest in its Silicon Valley operations, delivering tangible improvements in
our capacity and efficiency. These investments, taken alongside the timing and
revenue mix effects, are expected to result in an operating loss for the
second half, albeit at an improved level compared to the first half (H1 FY26
operating loss pre-exceptional gain on sale of land: £0.98m).

Despite the H2 operating loss, we expect to report a statutory profit before
tax of approximately £1.8m for FY26, a significant improvement on the
statutory loss before tax of £0.7m reported in FY25. The disposal of the
final plot of land at our UK headquarters, Oval Park, completed on 27 March
2026.  Following the conclusion of this process, which commenced in FY22, the
remaining Group property at Oval Park has been revalued, resulting in a
revaluation gain alongside the profit on disposal for the excess land. These
gains have been partially offset by an impairment of previously capitalised
development costs.

Year-end net cash balances are predicted to be c.£11m which includes a £3m
balancing payment relating to the Oval Park land disposal.

Looking ahead to FY27, we expect that the timing effects seen in H2 FY26 will
unwind. The shipments of a key product, previously affected by supply-chain
issues, were restored in the closing months of FY26 and will contribute more
fully in FY27.  More broadly, a number of industry issues, particularly
around elevated inventory levels and supply chain constraints, are expected to
show further progress. Recent internal initiatives around R&D optimisation
and target market verticals have been completed, laying the ground for further
improvements in both our productivity and commercial efficiency.

The Group will publish preliminary full‑year results on Tuesday, 16 June
2026.

  Tel: +44(0)1621 875 500
 CML Microsystems Plc

 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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