CML Microsystems PLC - Final Results
14 Juin 2000 - 9:00AM
UK Regulatory
RNS Number:2070M
CML Microsystems PLC
14 June 2000
CML Microsystems Plc
Preliminary Results for the
Year ended 31st March 2000
CML Microsystems Plc, the group which designs, manufactures
and markets a range of semiconductors for use in the
communications industry, announces Preliminary results for
the year ended 31 March 2000.
* Turnover from continuing Businesses up 28%
* Pre-tax profits from continuing Businesses up 80%
* EPS up 115%
* Dividend up 21%
* Net cash reserves at year end increased to #6.85m
* George Gurry, Chairman, said "The opening months of the
current year are proving encouraging for the Group.
Trading indications point to a sustained market requirement
for the Group's products in the foreseeable near term, and
access to new opportunities are expected to result from the
Group's active focus on developing its position in the
markets that it can serve.
* "I feel that your Company is well placed to address its
future with confidence. Subject, as always, to unforeseen
circumstances, I believe that this current year will be
marked by a further increase in its results."
For further information:
Nigel Clark Lulu Bridges / Peter Willetts
CML Microsystems Plc Tavistock Communications
Tel: 01621 875 500 Tel: 020 7600 2288
Chairman's Statement
The gains posted in the first half by the Group's semiconductor
product businesses' saw further improvement in the second half,
and the overall Group results for the full year have moved ahead
in a satisfactory and encouraging manner.
For your consideration of these results, I believe it may be
helpful to have context for the events that took place during
the early half. The Profit and Loss account states a division
between discontinued and continuing activities on only the full
year basis.
As I reported at the interim stage, your Company has disposed
recently of its interests in the Group's traffic business, which
has contributed approximately #6.7m to the Group's turnover in
the previous year, but only some #2m towards these present
results by the time of disposal. As a result of the operating
loss incurred by the traffic business, and the exceptional cost
arising on its disposal, the Group recorded only a nominal pre-
tax profit at the half-year (#61k).
For the full 12-month trading period ending 31 March 2000, the
Group recorded a 92% rise in operating profit to #1.906m (1999
#0.989m), and a 60% increase in pre-tax profit to #2.135m (1999
#1.328m).
Group turnover amounted to #19.751m, some 4% down on the figure
for the year earlier (1999 #20.617m), influenced by the material
reduction in traffic sales. The Group's core continuing
business achieved sales growth of 28% in the period.
Interest earnings again formed a reduced element in arriving at
the pre-tax figure, but cash available for investment showed
improvement through the later months. The Group's net cash
reserves had risen to #6.85m by the year-end (1999 #4.42m).
Basic earnings per share shows a twofold increase to 10.73p
(1999 4.96p) and retained earnings have returned to a positive
figure. Following from the Group's investment in its UK
scientific facilities it is seeing the benefit of more
favourable UK taxation.
Your Directors believe that these results represent a
satisfactory outcome to the year for your Company, and they
consider that it would be appropriate to recommend the payment
of an increased dividend. They are recommending the payment of
a dividend of 8.5p per ordinary share, an increase of 21.4% on
the year earlier (1999 7p share). Subject to shareholder
approval, this dividend will be payable to all shareholders on
the register as on the 7th July 2000.
The Group's semiconductor businesses' were successful in
achieving increased sales for their products in the major market
territories. In addition to the gains recorded in
Western Europe and the Far East, an encouraging rate of growth
was evident for sales into the North American marketplace. Over
90% of turnover for the Group's semiconductor companies came
from customers outside the United Kingdom.
Sales of product for Telecoms applications continued their rise,
and displaced Private Mobile Radio (PMR) as the principal
semiconductor product area by turnover. The Group's low-power
wire-line embedded modems, signalling and interface devices
proved popular with telecom equipment producers, and the
prospects are encouraging for the emerging new ISDN products.
A further slight fall was registered in sales of devices aimed
at the world PMR markets. This area had yet to show material
benefit from the Group's new digital system products, or the
targeted benefit expected from "consumer" versions of 2-way
radios now in the market.
A healthy increase in sales was recorded of products for
handheld wireless data terminals, where the Group's wireless
base-band engines are gaining best solution market status. The
Group is actively joined with the development plans of the
Network operators and terminal producers for a number of digital
wireless services in operation in the Far East and elsewhere.
Radio Data Technology, the Group business producing wireless
telemetry and wireless video end-user products, saw selling
prices come under pressure in its principal UK/Europe
marketplace, and an increase in products sold did not materially
lift the turnover. Changes taking place to EU regulatory
procedures are expected to increasingly benefit RDT's access to
the markets in Europe for its new UHF products.
The Group spent approximately #1.6m on R&D in the period, which
saw new design projects progressing on several market
development fronts.
The new semiconductor facility constructed in the UK was fully
occupied and operational in the third quarter, which contributed
materially to the Group's ability to ship a record number of
products to its customers worldwide. Good progress was evident
with the Group's planned enhancement of its selling,
distribution and customer support systems.
The opening months of the current year are proving encouraging
for the Group. Trading indications point to a sustained market
requirement for the Group's products in the foreseeable near
term, and access to new opportunities are expected to result
from the Group's active focus on developing its position in the
markets that it can serve.
Your directors were pleased to welcome the appointment of Mr
Christopher Gurry to the Board as the current year commenced.
Chris Gurry will assist your Board with its objective of
developing the opportunities before the business.
I feel that your Company is well placed to address its future
with confidence. Subject, as always, to unforeseen
circumstances, I believe that this current year will be marked
by a further increase in its results.
The progress of a business will always be dependant on the
quality and dedication of the people it employs. Your directors
wish to record their thanks for the performance and commitment
that the Group receives from its employees worldwide.
G. W. Gurry
Group Profit and Loss Account
Discontinued Continued Unaudited Audited
2000 1999
#'000 #'000 #'000 #'000
Turnover 1,992 17,759 19,751 20,617
-------- -------- -------- --------
Operating Profit/(Loss) (689) 3,151 2,462 990
Exceptional item (556) - (556) -
-------- -------- -------- --------
(1,245) 3,151 1,906 990
Interest receivable - 247 247 381
Interest payable (18) - (18) (42)
-------- -------- -------- --------
Profit/(loss) on
ordinary activities
before taxation (1,263) 3,398 2,135 1,329
-------- --------
Taxation (617) (557)
-------- --------
Profit on ordinary
activities after taxation 1,518 772
Minority interests (14) 1
-------- --------
Profit for the financial year 1,504 773
Proposed dividend (1,217) (974)
-------- --------
Retained profit/(loss)
for the year 287 (201)
-------- --------
Earnings per Share
Basic 10.73p 4.96p
-------- --------
Diluted 10.71p 4.94p
-------- --------
Summary Group Balance Sheet
Unaudited Audited
2000 1999
#'000 #'000 #'000 #'000
Fixed Assets
Tangible assets 9,817 9,992
Current Assets
Stocks 1,681 2,250
Debtors 3,014 5,219
Investments 3,893 2,114
Cash at bank and in hand 2,958 2,309
-------- --------
11,546 11,892
Creditors:
Amounts falling due
within one year (3,856) (5,146)
-------- --------
7,690 6,746
-------- --------
17,507 16,738
Provisions for
liabilities and charges (6) (74)
-------- --------
Net Assets 17,501 16,664
-------- --------
Capital and Reserves
Called up share capital 716 696
Share premium account 2,802 2,349
Capital redemption reserve 255 255
Profit and loss account 13,704 13,355
-------- --------
Shareholder's funds 17,477 16,655
-------- --------
Minority interests 24 9
-------- --------
17,501 16,664
-------- --------
Summary Group Cash Flow Statement
Unaudited Audited
2000 1999
#'000 #'000
Net cash inflow from operating activities 3,782 2,782
Returns on investments and servicing of finance 229 357
Taxation (564) (747)
Capital expenditure and financial investment (573) (3,542)
Equity dividends paid (974) (1,114)
-------- ---------
Net cash inflow/(outflow) before financing 1,900 (2,264)
Financing 473 (1,410)
-------- --------
Increase/(Decreased) in cash 2,373 (3,674)
-------- --------
Notes
1. The profit and loss account, balance sheet and cash flow
statement are an abridge version of the Company's full accounts
which have not yet been filed with the Registrar of Companies
and which have not yet been reported on by the Company's
auditors.
2. A dividend of 8.5p per Ordinary Share (1999: 7p per
Ordinary Share) is recommended in respect of the year ended 31st
March 2000 and will be paid on 4th August 2000 to shareholders
on the register as at 7th July 2000.
3. The effective tax rate is significantly reduced by a prior
year corporation tax credit of #318,000 as a result of a claim
for scientific research allowances on the new semiconductor
operating facility at Langford, Essex.
4. The calculation of earnings per share is based on the
earnings attributable to ordinary shareholders divided by the
weighted average number of shares in issue during the year.
The calculation of diluted earnings per share is
based on the basic earnings per share adjusted to
allow for the issue of shares on the assumed
conversion of all dilutive options.
5. The exceptional item is the net loss on the
disposal of the Group's interest in Microsense
Systems Limited, which was completed on 26th August
1999.
END
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