CML Microsystems (CML) - which designs semiconductor chips for wireless and data storage systems - saw full-year underlying operating profits surge 52 per cent year-on-year to £4.83m. That growth reflected increased shipment volumes, better semiconductor prices and the launch of new products.
A major contribution to that performance came from CML's storage division, where increased demand for flash memory circuits - heavily used in portable computing devices - meant sales rose 6.5 per cent to £11.5m to represent just under half of the group total. The wireless products side, meanwhile, did even better with revenues there having jumped 14 per cent to £9.8m - on greater shipments and a complementary performance from CML's high frequency radio products. However, an exception to that general trend was the poor performance of the telecom semiconductors operation - low value sales into the Chinese payment terminals industry meant revenues here fell slightly to £2.68m. In addition, management said this year would see an organised exit from the company's radio data technology segment, as this area has been overtaken by newer technology. Going forward, CML plans to concentrate exclusively on semiconductors.
Broker Cenkos Securities has slightly upgraded its forecasts for 2014 and now expects pre-tax profit of £5.7m, giving EPS of 27.8p (from £5.1m and 25.8p in 2013).
CML MICROSYSTEMS (CML) | ||||
|---|---|---|---|---|
| ORD PRICE: | 467p | MARKET VALUE: | £74.3m | |
| TOUCH: | 463-470p | 12-MONTH HIGH: | 478p | LOW: 253p |
| DIVIDEND YIELD: | 1.2% | PE RATIO: | 18 | |
| NET ASSET VALUE: | 134p | NET CASH: | £8.98m | |
| Year to 31 Mar | Turnover (£m) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2009 | 16.1 | -2.09 | -14.3 | nil |
| 2010 | 18.0 | -0.39 | -0.20 | nil |
| 2011 | 22.1 | 2.32 | 17.9 | 3.50 |
| 2012 | 23.4 | 3.95 | 21.1 | 4.00 |
| 2013 | 25.2 | 5.07 | 25.6 | 5.50 |
| % change | +8 | +28 | +21 | +38 |
Ex-div: 19 Jun Payment: 2 Aug | ||||
