TIDMCML
RNS Number : 5032R
CML Microsystems PLC
20 November 2012
CML Microsystems Plc
INTERIM RESULTS
CML Microsystems Plc ("CML"), which designs, manufactures and
markets a broad range of semiconductors, primarily for global
communication and data storage markets, announces Interim Results
for the six months ended 30 September 2012, in line with management
expectations.
Financial Highlights:
-- Revenues up 3.3% to GBP12.70m (2011 H1: GBP12.29m)
-- Gross profit up 2.6% to GBP8.73m (2011 H1: GBP8.51m)
-- Profit before tax up 19.5% to GBP2.41m (2011 H1: GBP2.02m)
-- Basic EPS up 13.5% of 11.20p (2011 H1: 9.87p)
-- Positive cash flow of GBP1.27m
-- Net cash position of GBP6.51m (2011 H1: GBP4.37m) - with bank
borrowings reduced by GBP1.66m to GBP1.35m
Operational Highlights:
-- Good revenue growth in the Americas, a modest increase in
sales to the Far East whereas Europe continues to be
challenging
-- Continued growth of semiconductor flash memory controllers
-- Industrial wireless voice and data products were lower in H1
but balanced by order intake for H2
-- Products sales for Telecom applications was broadly flat
Regarding Outlook, Chris Gurry, Managing Director of CML,
said:
"Top level trading performance through the first half year was
ahead of the comparable period and once again reflected the Group's
focus on delivering sustainable growth.
"Firm progress was made in the solid state Storage market and
expansion of the controller product range to include the SATA
interface standard is now fully supported by production released
solutions. The industrial SATA controller market is a key growth
area for the Group and customer design-in activity is on track to
begin generating meaningful revenues during the year ahead.
"Within Wireless, despite the potential for sporadic contracts
to cause comparable period inconsistencies, the underlying trend is
one of positive growth. The on-going customer adoption of the
Group's more recent RF, baseband and data modem portfolio validates
medium term growth objectives along with the continuing R&D
investment strategy.
"Global economic conditions continue to affect customer
sentiment in some areas, and whilst the possibility exists for
customer buying patterns to be impacted, trading since 1 October
serves to underpin Board expectations for a firm full year advance
in both revenues and profitability."
CML Microsystems Plc www.cmlmicroplc.com
Chris Gurry, Managing Director Tel: 01621 875 500
Nigel Clark, Financial
Director
Cenkos Securities plc
Jeremy Warner Allen (Sales) Tel: 020 7397 8900
Stephen Keys (Corporate
Finance)
Walbrook PR Ltd Tel: 020 7933 8780
Paul McManus Mob: 07980 541 893 or paul.mcmanus@walbrookpr.com
Helen Westaway Mob: 07841 917 679 or helen.westaway@walbrookpr.com
Chairman's Statement
I am pleased to report that your company has posted increased
sales and profitability for the six-months opening trading period
ended 30 September 2012. Although market conditions remained
difficult in some areas, the results reported align generally with
management expectations.
Sales revenues for the period showed an increase to GBP12.70m
(2011: GBP12.29m) while pre-tax profit rose to GBP2.41m (2011:
GBP2.02m).
A further reduction in the figure for bank loans and overdrafts
to GBP1.35m (2011: GBP3.01m) was achieved. The growing balance
sheet strength assisted the removal of all bank lien and charges
over Group owned properties.
In general, trading is proceeding pretty much as expected and I
see little comment that I might usefully add relating to the first
half trading results. When taken with the anticipated second
half-year performance, I feel confident that results for the full
year to 31 March 2013 will meet market expectations.
Speaking on behalf of the Board, I once again express our thanks
and appreciation to our global employees for their efforts and
commitment towards the Group's success.
G. W. Gurry
Chairman
20 November 2012
Operating and Financial Review
The six-month trading period to 30 September 2012 saw Group
revenues increase by just over 3% to GBP12.70m (2011: GBP12.29m)
representing steady progress amidst the backdrop of generally
challenging economic times. Geographically, the Group experienced
double digit percentage growth within the Americas along with a
modest increase into the Far East region. Trading with Europe
continued to be challenging and experienced a marginal decline
against the comparable six-months.
The period under review showed continued growth from the sale of
semiconductor flash memory controller products into industrial
solid state Storage applications. Revenues moved firmly ahead
against the prior year interim figure with most of the top Storage
customers increasing their purchase levels.
The sale of Group products into industrial wireless voice and
data application areas was somewhat lower against the prior
half-year period although order intake for delivery during the
second half leaves full year expectations for further advances in
Wireless shipments unchanged.
Revenues from the sale of Group semiconductors into Telecom
applications were broadly flat.
The Group's equipment division, RDT, saw revenues drop to
GBP308k (2011: GBP415k) as trading in its dominant UK security
markets remained weak.
Gross margin remained stable at 69% leading to a reported gross
profit of GBP8.73m (2011: GBP8.51m). Distribution and
administration costs fell slightly to GBP6.42m (2011: 6.52m) and
this helped to deliver an operational profit (before other income,
share-based payments and finance costs) of GBP2.32m against a
comparable period figure of GBP1.99m.
Other operating income, principally rental proceeds from group
owned industrial properties, rose slightly to GBP124k (2011:
GBP89k).
Focussed management of Group cash resources led to a net finance
income being recorded of GBP5k against a prior year first half cost
of GBP37k.
Profit before tax amounted to GBP2.41m representing a 19%
increase on the comparable half-year period. (2011: GBP2.02m).
A combination of increased revenues, static gross margin and
reduced operating costs generated positive cash flow of GBP1.27m.
This increase was posted after payment of a GBP631k cash dividend.
At the period end the Group had cash reserves of GBP7.86m (2011:
GBP7.38m) and bank borrowings of GBP1.35m (2011: GBP3.01m).
Summary & Outlook
Top level trading performance through the first half year was
ahead of the comparable period and once again reflected the Group's
focus on delivering sustainable growth.
Firm progress was made in the solid state Storage market and
expansion of the controller product range to include the SATA
interface standard is now fully supported by production released
solutions. The industrial SATA controller market is a key growth
area for the Group and customer design-in activity is on track to
begin generating meaningful revenues during the year ahead.
Within Wireless, despite the potential for sporadic contracts to
cause comparable period inconsistencies, the underlying trend is
one of positive growth. The on-going customer adoption of the
Group's more recent RF, baseband and data modem portfolio validates
medium term growth objectives along with the continuing R&D
investment strategy.
Global economic conditions continue to affect customer sentiment
in some areas, and whilst the possibility exists for customer
buying patterns to be impacted, trading since 1 October serves to
underpin Board expectations for a firm full year advance in both
revenues and profitability.
C. A. Gurry
Managing Director
20 November 2012
Condensed Consolidated Income Statement
for the six months ended September 2012
Unaudited Unaudited Audited
Six months Six months Year end
end end
30/09/12 30/09/11 31/03/12
GBP'000 GBP'000 GBP'000
------------------------------------- ---------- ---------- --------
Continuing operations
Revenue 12,698 12,293 23,409
Cost of sales (3,965) (3,785) (7,197)
------------------------------------- ---------- ---------- --------
Gross profit 8,733 8,508 16,212
Distribution and administration
costs (6,416) (6,521) (13,050)
------------------------------------- ---------- ---------- --------
2,317 1,987 3,162
Other operating income 124 89 459
------------------------------------- ---------- ---------- --------
Profit before share-based payments 2,441 2,076 3,621
Share-based payments (38) (24) (63)
------------------------------------- ---------- ---------- --------
Profit after share-based payments 2,403 2,052 3,558
Revaluation of investment properties - - 328
Finance costs - (41) (39)
Finance income 5 4 102
------------------------------------- ---------- ---------- --------
Profit before taxation 2,408 2,015 3,949
Income tax expense (638) (489) (633)
------------------------------------- ---------- ---------- --------
Profit for period attributable
to equity owners of the parent 1,770 1,526 3,316
------------------------------------- ---------- ---------- --------
Earnings per share
Basic 11.20p 9.87p 21.06p
------------------------------------- ---------- ---------- --------
Diluted 11.13p 9.78p 20.94p
------------------------------------- ---------- ---------- --------
Condensed Consolidated Statement of Comprehensive Income
for the six months ended September 2012
Unaudited Unaudited Audited
6 months end 6 months end Year end
30/09/12 30/09/11 31/03/12
GBP'000 GBP'000 GBP'000
------------------------------------ ------------ ------------ --------
Profit for the period 1,770 1,526 3,316
Other comprehensive income:
Foreign exchange differences (65) 56 6
Actuarial loss on retirement
benefit obligations - - (1,962)
Income tax on actuarial loss - - 458
------------------------------------ ------------ ------------ --------
Other comprehensive income for
the period net of tax (65) 56 (1,498)
------------------------------------ ------------ ------------ --------
Total comprehensive income for
the period net of tax attributable
to equity owners of the business 1,705 1,582 1,818
------------------------------------ ------------ ------------ --------
Condensed Consolidated Statement of Financial Position
as at 30 September 2012
Unaudited Unaudited Audited
30/09/12 30/09/11 31/03/12
GBP'000 GBP'000 GBP'000
---------------------------------- --------- --------- --------
Assets
Non-current assets
Property, plant and equipment 5,132 5,165 5,156
Investment properties 3,450 3,450 3,450
Development costs 4,372 4,385 4,154
Goodwill 3,512 3,512 3,512
Deferred tax asset 2,398 2,608 2,731
---------------------------------- --------- --------- --------
18,864 19,120 19,003
---------------------------------- --------- --------- --------
Current assets
Inventories 2,017 1,686 1,781
Trade receivables and prepayments 2,693 1,104 1,566
Current tax assets - - 135
Cash and cash equivalents 7,864 7,383 7,742
---------------------------------- --------- --------- --------
12,574 10,173 11,224
---------------------------------- --------- --------- --------
Non-current assets classified
as held for
sale - properties 103 430 105
---------------------------------- --------- --------- --------
Total assets 31,541 29,723 30,332
---------------------------------- --------- --------- --------
Liabilities
Current liabilities
Bank loans and overdrafts 1,354 3,014 2,501
Trade and other payables 3,604 3,375 2,604
Current tax liabilities 255 276 102
---------------------------------- --------- --------- --------
5,213 6,665 5,207
---------------------------------- --------- --------- --------
Non-current liabilities
Deferred tax liabilities 1,671 1,816 1,672
Retirement benefit obligation 4,542 2,607 4,542
---------------------------------- --------- --------- --------
6,213 4,423 6,214
---------------------------------- --------- --------- --------
Total liabilities 11,426 11,088 11,421
---------------------------------- --------- --------- --------
Net assets 20,115 18,635 18,911
---------------------------------- --------- --------- --------
Capital and reserves attributable
to equity owners of the parent
Share capital 793 788 788
Share premium 4,959 4,872 4,872
Share-based payments reserve 146 69 108
Foreign exchange reserve 268 382 333
Accumulated profits 13,949 12,524 12,810
---------------------------------- --------- --------- --------
Shareholders' equity 20,115 18,635 18,911
---------------------------------- --------- --------- --------
Condensed Consolidated cash flow statement
for the six months ended 30 September 2012
Unaudited Unaudited Audited
Six months Six months Year end
end end
30/09/12 30/09/11 31/03/12
GBP'000 GBP'000 GBP'000
------------------------------------------------- ---------- ---------- --------
Operating activities
Profit for the period before income taxes 2,408 2,015 3,950
Adjustments for:
Depreciation 109 94 213
Amortisation of development costs 1,146 1,460 2,944
Revaluation of investment properties - - 69
Movement in pensions deficit - - 66
Share-based payments 38 24 63
Interest expense - 41 39
Interest income (5) (4) (7)
Decrease in working capital (362) 1,239 (492)
------------------------------------------------- ---------- ---------- --------
Cash flows from operating activities 3,334 4,869 6,845
Income tax refunded/(paid) 19 (118) (398)
------------------------------------------------- ---------- ---------- --------
Net cash flows from operating activities 3,353 4,751 6,447
------------------------------------------------- ---------- ---------- --------
Investing activities
Purchase of property, plant and equipment (88) (33) (145)
Investment in development costs (1,460) (2,247) (3,518)
Disposals of property, plant and equipment - 2 9
Disposal of assets held for sale - - 669
Interest income 5 4 7
------------------------------------------------- ---------- ---------- --------
Net cash flows from investing activities (1,543) (2,274) (2,978)
------------------------------------------------- ---------- ---------- --------
Financing activities
Issue of ordinary shares 92 55 55
Decrease in bank loans and short-term borrowings (1,146) (905) (1,419)
Dividend paid to Group shareholders (631) (550) (550)
Finance cost - (41) (39)
------------------------------------------------- ---------- ---------- --------
Net cash flows from financing activities (1,685) (1,441) (1,953)
------------------------------------------------- ---------- ---------- --------
Increase in cash and cash equivalents 125 1,036 1,516
------------------------------------------------- ---------- ---------- --------
Movement in cash and cash equivalents:
At start of period/year 7,742 6,246 6,246
Increase in cash and cash equivalents 125 1,036 1,516
Effects of exchange rate changes (3) 101 (19)
------------------------------------------------- ---------- ---------- --------
At end of period/year 7,864 7,383 7,742
------------------------------------------------- ---------- ---------- --------
Condensed consolidated statement of changes in equity
for the six months ended 30 September 2012
Foreign
Share Share Share-based exchange Accumulated
capital premium payments reserve profits Total
Unaudited GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
--------------------------------- ------- ------- ----------- -------- ----------- -------
At 1 April 2011 785 4,820 298 326 11,295 17,524
--------------------------------- ------- ------- ----------- -------- ----------- -------
Profit for period 1,526 1,526
Other comprehensive income:
Foreign exchange differences 56 56
--------------------------------- ------- ------- ----------- -------- ----------- -------
Total comprehensive income
for the period - - - 56 1,526 1,582
--------------------------------- ------- ------- ----------- -------- ----------- -------
Transactions with owners
in their capacity as owners:
Dividend paid (550) (550)
Issue of ordinary shares 3 52 55
--------------------------------- ------- ------- ----------- -------- ----------- -------
Total of transactions with
owners in their capacity
as owners: 3 52 - - (550) (495)
Share-based payments transferred
on cancellation (253) 253 -
Share-based payments 24 24
--------------------------------- ------- ------- ----------- -------- ----------- -------
At 30 September 2011 788 4,872 69 382 12,524 18,635
--------------------------------- ------- ------- ----------- -------- ----------- -------
Profit for period 1,790 1,790
Other comprehensive income:
Foreign exchange differences (49) (49)
Net actuarial profits recognised
directly to equity (1,962) (1,962)
Deferred tax on actuarial
losses 458 458
--------------------------------- ------- ------- ----------- -------- ----------- -------
Total comprehensive income
for the period - - - (49) 286 237
--------------------------------- ------- ------- ----------- -------- ----------- -------
Share-based payments 39 39
--------------------------------- ------- ------- ----------- -------- ----------- -------
At 31 March 2012 788 4,872 108 333 12,810 18,911
--------------------------------- ------- ------- ----------- -------- ----------- -------
Profit for period 1,770 1,770
Other comprehensive income:
Foreign exchange differences (65) (65)
--------------------------------- ------- ------- ----------- -------- ----------- -------
Total comprehensive income
for the period - - - (65) 1,770 1,705
--------------------------------- ------- ------- ----------- -------- ----------- -------
Transactions with owners
in their capacity as owners:
Dividend paid (631) (631)
Issue of ordinary shares 5 87 92
--------------------------------- ------- ------- ----------- -------- ----------- -------
Total of transactions with
owners in their capacity
as owners: 5 87 - - (631) (539)
--------------------------------- ------- ------- ----------- -------- ----------- -------
Share-based payments 38 38
--------------------------------- ------- ------- ----------- -------- ----------- -------
At 30 September 2012 793 4,959 146 268 13,949 20,115
--------------------------------- ------- ------- ----------- -------- ----------- -------
Notes to the Condensed Financial Statements
1. Segmental analysis
Business segments
Unaudited Unaudited Audited
Six months end Six months end Year end
30/09/12 30/09/11 31/03/12
------------------------------ ------------------------------ -------------------------------
Semi- Semi- Semi-
conductor conductor conductor
Equipment components Group Equipment components Group Equipment components Group
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------- --------- ---------- ------- --------- ---------- ------- --------- ---------- --------
Revenue
By origination 308 20,824 21,132 415 21,444 21,859 759 38,245 39,004
Inter-segmental
revenue - (8,434) (8,434) - (9,566) (9,566) - (15,595) (15,595)
------------------- --------- ---------- ------- --------- ---------- ------- --------- ---------- --------
Segmental revenue 308 12,390 12,698 415 11,878 12,293 759 22,650 23,409
------------------- --------- ---------- ------- --------- ---------- ------- --------- ---------- --------
Profit/(loss)
Segmental result (68) 2,471 2,403 4 2,048 2,052 (55) 3,613 3,558
------------------- --------- ---------- --------- ---------- --------- ----------
Revaluation of
investment
properties - - 328
Net financial
income 5 (37) 63
Income tax (638) (489) (633)
------- ------- --------
Profit after
taxation 1,770 1,526 3,316
------- ------- --------
Assets and
liabilities
Segmental assets 659 24,931 25,590 606 22,629 23,235 611 23,300 23,911
------------------- --------- ---------- --------- ---------- --------- ----------
Unallocated
corporate
assets
Investment property
(including held
for sale) 3,553 3,880 3,555
Deferred taxation 2,398 2,608 2,731
Current tax
receivable - - 135
------- ------- --------
Consolidated total
assets 31,541 29,723 30,332
------- ------- --------
Segmental
liabilities 298 3,306 3,604 91 3,284 3,375 183 2,421 2,604
------------------- --------- ---------- --------- ---------- --------- ----------
Unallocated
corporate
assets
Deferred taxation 1,671 1,816 1,672
Current tax
liability 255 276 102
Bank loans and
overdrafts 1,354 3,014 2,501
Retirement benefit
obligation 4,542 2,607 4,542
------- ------- --------
Consolidated total
liabilities 11,426 11,088 11,421
------- ------- --------
Other segmental
information
Property, plant
and equipment
additions 88 - 88 32 1 33 4 141 145
------------------- --------- ---------- ------- --------- ---------- ------- --------- ---------- --------
Development cost
additions 1,425 35 1,460 2,206 41 2,247 78 3,440 3,518
------------------- --------- ---------- ------- --------- ---------- ------- --------- ---------- --------
Depreciation 108 1 109 90 4 94 6 207 213
------------------- --------- ---------- ------- --------- ---------- ------- --------- ---------- --------
Amortisation 1,114 32 1,146 1,427 33 1,460 74 2,870 2,944
------------------- --------- ---------- ------- --------- ---------- ------- --------- ---------- --------
Other significant
non-cash income - - - - - - - (42) (42)
------------------- --------- ---------- ------- --------- ---------- ------- --------- ---------- --------
Geographical segments
UK Germany Americas Far East Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
----------------------------------- ------- ------- -------- -------- --------
Unaudited
Six months ended 30 September 2012
Revenue by origination 6,121 6,407 3,106 5,498 21,132
Inter-segmental revenue (3,134) (5,300) - - (8,434)
----------------------------------- ------- ------- -------- -------- --------
Revenue to third parties 2,987 1,107 3,106 5,498 12,698
----------------------------------- ------- ------- -------- -------- --------
Property, plant and equipment 4,926 58 134 14 5,132
----------------------------------- ------- ------- -------- -------- --------
Investment properties including
held for sale 3,450 - 103 - 3.553
----------------------------------- ------- ------- -------- -------- --------
Goodwill - 3,512 - - 3,512
----------------------------------- ------- ------- -------- -------- --------
Development cost 2,029 2,343 - - 4,372
----------------------------------- ------- ------- -------- -------- --------
Total assets 22,176 5,894 1,562 1,909 31,541
----------------------------------- ------- ------- -------- -------- --------
Unaudited
Six months ended 30 September 2011
Revenue by origination 7,182 6,275 2,887 5,515 21,859
Inter-segmental revenue (4,244) (5,295) - (27) (9,566)
----------------------------------- ------- ------- -------- -------- --------
Revenue to third parties 2,938 980 2,887 5,488 12,293
----------------------------------- ------- ------- -------- -------- --------
Property, plant and equipment 5,062 67 16 20 5,165
----------------------------------- ------- ------- -------- -------- --------
Investment properties including
held for sale 3,450 - 430 - 3,880
----------------------------------- ------- ------- -------- -------- --------
Goodwill - 3,512 - - 3,512
----------------------------------- ------- ------- -------- -------- --------
Development cost 2,321 2,064 - - 4,385
----------------------------------- ------- ------- -------- -------- --------
Total assets 21,495 4,920 1,770 1,538 29,723
----------------------------------- ------- ------- -------- -------- --------
Audited
Year ended 31 March 2012
Revenue by origination 12,362 10,529 6,279 9,835 39,005
Inter-segmental revenue (6,706) (8,859) - (31) (15,596)
----------------------------------- ------- ------- -------- -------- --------
Revenue to third parties 5,656 1,670 6,279 9.804 23,409
----------------------------------- ------- ------- -------- -------- --------
Property, plant and equipment 4,968 56 116 16 5,156
----------------------------------- ------- ------- -------- -------- --------
Investment properties including
held for sale 3,450 - 105 - 3,555
----------------------------------- ------- ------- -------- -------- --------
Goodwill - 3,512 - - 3,512
----------------------------------- ------- ------- -------- -------- --------
Development cost 1,908 2,246 - - 4,154
----------------------------------- ------- ------- -------- -------- --------
Total assets 22,883 5,059 1,185 1,205 30,332
----------------------------------- ------- ------- -------- -------- --------
Reported segments and their results in accordance with IFRS 8,
is based on internal management reporting information that is
regularly reviewed by 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.
2. Dividend paid and proposed
A dividend of 4p per 5p ordinary share in respect of the year
ended 31 March 2012 was paid on 3 August 2012 (2011: 3.5p per
ordinary share of 5p in respect of the year ended 31 March 2011).
No dividend is proposed in respect of the six months period ended
30 September 2012 (2011: GBPNil per ordinary share of 5p in respect
of the period ended 30 September 2011).
3. Income tax
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.
Unaudited Unaudited Audited
Six months Six months Year end
end end
30/09/12 30/09/11 31/03/12
GBP'000 GBP'000 GBP'000
------------------------------ ---------- ---------- --------
UK income tax charge/(credit) - 170 (134)
Overseas income tax charge 326 175 447
------------------------------ ---------- ---------- --------
Total current tax charge 326 345 313
Deferred tax charge 312 144 320
------------------------------ ---------- ---------- --------
Reported income tax charge 638 489 633
------------------------------ ---------- ---------- --------
4. Earnings per share
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.
Ordinary 5p shares
----------------------
Weighted
average Diluted
number number
----------------------------------- ---------- ----------
Six months ended 30 September 2012 15,809,707 15,903,421
----------------------------------- ---------- ----------
Six months ended 30 September 2011 15,467,789 15,600,977
----------------------------------- ---------- ----------
Year end 31 March 2012 15,743,946 15,835,323
----------------------------------- ---------- ----------
5. Investment properties
Investment properties are revalued at each discrete period end
by the Directors and every third year by independent Chartered
Surveyors on an open market basis. No depreciation is provided on
freehold investment properties or on leasehold investment
properties. In accordance with IAS 40, gains and losses arising on
revaluation of investment properties are shown in the income
statement. At 31 March 2012 the investment properties were
professionally valued by Everett Newlyn, Chartered Surveyors and
Commercial Property Consultants on an open market basis.
6. Analysis of cash flow movement in net debt
Net cash Six months Net cash Six months Net cash Six months Net cash
at end at end at end at
01/04/11 30/09/11 30/09/11 31/03/12 31/03/12 30/09/12 30/09/12
Cash flow Cash flow Cash flow
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
-------------------------- -------- ---------- -------- ---------- -------- ---------- --------
Cash and cash equivalents 6,246 1,137 7,383 359 7,742 122 7,864
Bank loans and overdrafts (3,919) 905 (3,014) 513 (2,501) 1,147 (1,354)
-------------------------- -------- ---------- -------- ---------- -------- ---------- --------
2,327 2,042 4,369 872 5,241 1,269 6,510
-------------------------- -------- ---------- -------- ---------- -------- ---------- --------
The cash flow above is a combination of the actual cash flow and
the exchange movement.
During the period the security held by the Company's bankers
over land and buildings was extinguished.
7. Retirement benefit obligations
The Directors have not obtained an actuarial report in respect
of the defined benefit pension scheme for the purpose of this Half
Yearly Report.
8. Principal risks and uncertainties
Key risks of a financial nature
The principal risks and uncertainties facing the Group are with
foreign currencies and customer dependency. With the majority of
the Group's earnings being linked to the US Dollar, a decline in
this currency would have a direct effect on revenue, although since
the majority of the cost of sales are also linked to the US Dollar,
this risk is reduced at the gross profit line. Additionally, though
the Group has a very diverse customer base in certain market
segments, key customers can represent a significant amount of
revenue. Key customer relationships are closely monitored, however
changes in buying patterns of a key customer could have an adverse
effect on the Group's performance.
Key risks of a non-financial nature
The Group is a small player operating in a highly-competitive
global market, which is undergoing continual geographical change.
The Group's ability to respond to many competitive factors
including, but not limited to pricing, technological innovations,
product quality, customer service, manufacturing capabilities and
employment of qualified personnel will be key in the achievement of
its objectives, but its ultimate success will depend on the demand
for its customers' products since the Group is a component
supplier.
A substantial proportion of the Group's revenue and earnings are
derived from outside the UK and so the Group's ability to achieve
its financial objectives could be impacted by risks and
uncertainties associated with local legal requirements, the
enforceability of laws and contracts, changes in the tax laws,
terrorist activities, natural disasters or health epidemics.
9. Directors' statement pursuant to the Disclosure and
Transparency Rules
The Directors confirm that, to the best of their knowledge:
a. the condensed financial statements, prepared in accordance
with IFRS as adopted by the EU give a true and fair view of the
assets, liabilities, financial position and profit of the Group and
the undertakings included in the consolidation taken as a whole;
and
b. the condensed set of financial statements have been prepared
in accordance with IAS 34 "Interim Financial Reporting"; and
c. the Chairman's statement and operating and financial review
include a fair review of the development and performance of the
business and the position of the Company and the undertakings
included in the consolidation taken as a whole together with a
description of the principal risks and uncertainties that they
face.
The Directors are also responsible for the maintenance and
integrity of the CML Microsystems Plc website. Legislation in the
UK governing the preparation and dissemination of the financial
statements may differ from legislation in other jurisdictions.
10. Basis of preparation
The basis of preparation and accounting policies used in
preparation of the Half Yearly Financial Report are the same
accounting policies set out in the year ended 31 March 2012
financial statements.
11. General
Other than already stated within the Chairman's statement and
the operating and financial 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 principal risks and uncertainties within the business are
contained within this report in note 8 above.
In the segmental analysis (note 1) inter-segmental transfers or
transactions are entered into under commercial terms and conditions
appropriate to the location of the entity whilst considering that
the parties are related.
This interim management report includes a fair review of the
information required by DTR 4.2.7/8 (indication of important events
and their impact, and description of principal risks and
uncertainties for the remaining six months of the financial
year).
This Half Yearly Financial Report does not include all the
information and disclosures required in the Annual Report, and
should be read in conjunction with the consolidated Annual Report
for the year ended 31 March 2012.
The financial information contained in this Half Yearly
Financial Report has been prepared using International Financial
Reporting Standards as adopted by the European Union. This Half
Yearly Financial Report does not constitute statutory accounts as
defined by Section 434 of the Companies Act 2006. The financial
information for the year ended 31 March 2012 is based on the
statutory accounts for the financial year ended 31 March 2012 that
have been filed with the Registrar of Companies and on which the
Auditor gave an unqualified audit opinion.
11. General (continued)
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 Financial Report has not been audited or reviewed
by the Group Auditor.
A copy of this Half Yearly Report can be viewed on the Company
website www.cmlmicroplc.com.
12. Approval
The Directors approved this Half Yearly Report on 20 November
2012.
GLOSSARY
GPRS general packet radio services
M2M machine to machine
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Cml Microsystems (LSE:CML)
Graphique Historique de l'Action
De Oct 2023 à Oct 2024
