TIDMCML
RNS Number : 2518X
CML Microsystems PLC
18 November 2014
CML Microsystems Plc
INTERIM RESULTS
CML Microsystems Plc ("CML"), which designs, manufactures and
markets a broad range of semiconductor products, primarily for the
global communication and data storage markets, announces Interim
Results for the six months ended 30 September 2014.
Financial Highlights
-- First half results in-line with management budgets and market expectations
-- Group revenues down 21% to GBP10.21m (H1 2013: GBP12.99m)
-- Underlying profit before tax down 62% to GBP1.24m (H1 2013: GBP3.21m)
-- Basic EPS down 62% to 5.92p (H1 2013: 15.73p)
-- Cash reserves of GBP11.59m (31 March 2014: GBP11.37m) - after GBP1.01m dividend payment
Operational Highlights
-- Promising H2 order book meaningfully ahead of prior half year
-- Storage sales weaker but improved as the half year progressed
-- Sales of Flash memory controllers for the automotive infotainment market grew strongly
-- Encouraging early interest in new industrial class USB controller
-- Wireless sales improved towards the end of the half
-- Orders from two new customers for machine-to-machine applications
-- Sales into analogue telephony applications were lower across all major regions
Chris Gurry, Chairman and Chief Executive of CML, said:
"The Group continues to make good progress with its numerous
engineering, selling and market-related activities that are
directed at widening the product range, the customer base and the
addressable market areas. Whilst these activities are not expected
to contribute meaningfully to the current year, I am confident that
the product and management strategies being followed should allow
the Group to return to growth beyond this financial year."
CML Microsystems Plc www.cmlmicroplc.com
Chris Gurry, Chairman and Chief Tel: 01621 875 500
Executive
Nigel Clark, Financial Director
Cenkos Securities Plc Tel: 020 7397 8900
Jeremy Warner Allen (Sales)
Max Hartley (Corporate Finance)
SP Angel Corporate Finance Tel: 020 3463 2260
LLP
Jeff Keating
Walbrook PR Ltd Tel: 020 7933 8780 or cml@walbrookpr.com
Paul McManus Mob: 07980 541 893
Helen Cresswell Mob: 07841 917 679
Chairman and Chief Executive's statement and operational and
financial review
Overview
As anticipated, the results for the opening six months of the
financial year saw revenue from continuing operations down 21% to
GBP10.21m (2013: GBP12.99m), underlying profit before tax reduce by
62% to GBP1.24m (2013: GBP3.21m) and basic earnings per share fall
62% to 5.92p (2013: 15.73p). This performance arises from the
combined effects of previously communicated prior-year events
within our storage market along with some cyclical volatility
within wireless centred on regional government spending.
The results were in line with management budgets and, notably,
the outstanding order book at the end of September 2014 was
meaningfully ahead of the prior half year, supporting expectations
for a firmer second half performance.
The sale of semiconductors into industrial solid state storage
and removable card applications improved as the half year
progressed. Good advances were made with expanding future revenue
potential through a combination of new customer growth and a
broader product portfolio. Shipments of flash memory controller
integrated circuits ("ICs") for use within the automotive
infotainment market grew strongly and early interest shown in the
Group's new industrial class USB controller has been
encouraging.
The shipment of ICs into Wireless voice and data application
areas also improved towards the period end after commencing the
year at a relatively low level. The number of customers designing
end products that contain Group chip-set solutions increased and it
was particularly pleasing that initial orders were received from
two new customers who each serve differing machine-to-machine
("M2M") application areas.
Revenue from the sale of Telecom ICs into traditional analogue
telephony applications was lower and reflected a general weakness
across all of the major regions served.
Financial summary
Revenue of GBP10.21m combined with stable gross margin delivered
gross profit of GBP7.22m (2013: GBP9.21m). Distribution and
administration costs were flat at GBP6.17m (2013: GBP6.16m) with an
operating profit of GBP1.06m being recorded (2013: GBP3.06m). The
Group benefited from other operating income of GBP221k (2013:
GBP192k), principally EU grants and the rental income on
group-owned industrial properties. Finance income fell to GBP22k
(2013: GBP35k) as a result of lower interest rates on cash
reserves. Profit before tax amounted to GBP1.24m (2013:
GBP3.21m).
At the period end, cash reserves stood at GBP11.59m (31 March
2014: GBP11.37m) after payment of a GBP1.01m dividend in respect of
the prior year. Working capital was better controlled and further
enhanced by the receipt of a conditional customer-prepayment of
US$600k against a key new product development. The Group has no
borrowings.
Summary and outlook
Whilst it is disappointing to report interim results that
interrupt the Group's sustained growth record over recent years,
operating performance through the opening six-month period has
progressively improved and the results delivered meet both
management and market expectations.
In addition to a promising order book at 30 September 2014, new
order bookings since that date serve to reinforce expectations that
second half revenue should exceed the first.
The Group continues to make good progress with its numerous
engineering, selling and market-related activities that are
directed at widening the product range, the customer base and the
addressable market areas. Whilst these activities are not expected
to contribute meaningfully to the current year, I am confident that
the product and management strategies being followed should allow
the Group to return to growth beyond this financial year.
C. A. Gurry
Chairman and Chief Executive
17 November 2014
Condensed consolidated income statement
for the six months ended 30 September 2014
Unaudited Unaudited Audited
6 months end 6 months end Year end
30/09/14 30/09/13 31/03/14
GBP'000 GBP'000 GBP'000
-------------------------------------------------------- ------------ ------------ --------
Continuing operations
Revenue 10,209 12,989 24,393
Cost of sales (2,986) (3,777) (6,511)
-------------------------------------------------------- ------------ ------------ --------
Gross profit 7,223 9,212 17,882
Distribution and administration costs (6,168) (6,156) (12,470)
-------------------------------------------------------- ------------ ------------ --------
1,055 3,056 5,412
Other operating income 221 192 474
-------------------------------------------------------- ------------ ------------ --------
Profit before share-based payments 1,276 3,248 5,886
Share-based payments (61) (69) (156)
-------------------------------------------------------- ------------ ------------ --------
Profit after share-based payments 1,215 3,179 5,730
Finance costs - - -
Finance income 22 35 62
-------------------------------------------------------- ------------ ------------ --------
Profit before taxation 1,237 3,214 5,792
Income tax expense (281) (710) (1,024)
-------------------------------------------------------- ------------ ------------ --------
Profit after taxation from continuing operations 956 2,504 4,768
Profit/(loss) from discontinued operations (see note 4) - - -
-------------------------------------------------------- ------------ ------------ --------
Profit for period attributable to equity owners of
the parent 956 2,504 4,768
-------------------------------------------------------- ------------ ------------ --------
Basic earnings per share
From continuing operations 5.92p 15.73p 29.96p
-------------------------------------------------------- ------------ ------------ --------
From profit for the year 5.92p 15.73p 29.96p
-------------------------------------------------------- ------------ ------------ --------
From discontinued operations - - -
-------------------------------------------------------- ------------ ------------ --------
Diluted earnings per share
From continuing operations 5.84p 15.73p 29.20p
-------------------------------------------------------- ------------ ------------ --------
From profit for the year 5.84p 15.73p 29.20p
-------------------------------------------------------- ------------ ------------ --------
From discontinued operations - - -
-------------------------------------------------------- ------------ ------------ --------
Condensed consolidated statement of comprehensive income
for the six months ended 30 September 2014
Unaudited Unaudited Audited
6 months end 6 months end Year end
30/09/14 30/09/13 31/03/14
GBP'000 GBP'000 GBP'000
-------------------------------------------------------------------------------- ------------ ------------ --------
Profit for the period 956 2,504 4,768
Other comprehensive income:
Foreign exchange differences (258) (214) (302)
Actuarial loss on retirement benefit obligations - - 3,393
Income tax on actuarial loss - - (678)
-------------------------------------------------------------------------------- ------------ ------------ --------
Other comprehensive income for the period net of tax (258) (214) 2,413
-------------------------------------------------------------------------------- ------------ ------------ --------
Total comprehensive income for the period net of tax attributable to equity
owners of the
business 698 2,290 7,181
-------------------------------------------------------------------------------- ------------ ------------ --------
Condensed consolidated statement of financial position
as at 30 September 2014
Unaudited Unaudited Audited
30/09/14 30/09/13 31/03/14
GBP'000 GBP'000 GBP'000
------------------------------------------------------------ --------- --------- --------
Assets
Non-current assets
Property, plant and equipment 5,040 5,025 4,937
Investment properties 3,450 3,450 3,450
Development costs 7,258 5,611 6,188
Goodwill 3,512 3,512 3,512
Deferred tax asset 1,238 2,242 1,271
------------------------------------------------------------ --------- --------- --------
20,498 19,840 19,358
------------------------------------------------------------ --------- --------- --------
Current assets
Inventories 1,456 1,536 1,129
Trade receivables and prepayments 2,777 4,187 3,388
Current tax assets 191 - 283
Cash and cash equivalents 11,586 9,737 11,373
------------------------------------------------------------ --------- --------- --------
16,010 15,460 16,173
------------------------------------------------------------ --------- --------- --------
Non-current assets classified as held for sale - properties - 103 100
------------------------------------------------------------ --------- --------- --------
Total assets 36,508 35,403 35,631
------------------------------------------------------------ --------- --------- --------
Liabilities
Current liabilities
Trade and other payables 2,845 3,863 2,509
Current tax liabilities 446 422 274
------------------------------------------------------------ --------- --------- --------
3,291 4,285 2,783
------------------------------------------------------------ --------- --------- --------
Non-current liabilities
Deferred tax liabilities 2,291 2,058 2,224
Retirement benefit obligation 2,698 6,122 2,698
------------------------------------------------------------ --------- --------- --------
4,989 8,180 4,922
------------------------------------------------------------ --------- --------- --------
Total liabilities 8,280 12,465 7,705
------------------------------------------------------------ --------- --------- --------
Net assets 28,228 22,938 27,926
------------------------------------------------------------ --------- --------- --------
Capital and reserves attributable to equity owners of
the parent
Share capital 811 798 798
Share premium 5,614 5,060 5,070
Share-based payments reserve 388 240 327
Foreign exchange reserve (47) 299 211
Accumulated profits 21,462 16,541 21,520
------------------------------------------------------------ --------- --------- --------
Shareholders' equity 28,228 22,938 27,926
------------------------------------------------------------ --------- --------- --------
Condensed consolidated cash flow statements
for the 6 months ended 30 September 2014
Unaudited Unaudited Audited
6 months end 6 months end Year end
30/09/14 30/09/13 31/03/14
GBP'000 GBP'000 GBP'000
------------------------------------------------- ------------ ------------ --------
Continuing operations
Operating activities
Net profit for the period before income taxes 1,237 3,217 5,792
Adjustments for:
Depreciation 110 124 255
Amortisation of development costs 1,408 1,109 2,588
Movement in pensions deficit - - 31
Share-based payments 61 69 156
Finance income (22) (35) (62)
Decrease/(Increase) in working capital 608 (959) (1,109)
------------------------------------------------- ------------ ------------ --------
Cash flows from operating activities 3,402 3,525 7,651
Income tax refunded/(paid) 151 65 (202)
------------------------------------------------- ------------ ------------ --------
Net cash flows from operating activities 3,553 3,590 7,449
------------------------------------------------- ------------ ------------ --------
Investing activities
Purchase of property, plant and equipment (256) (58) (103)
Investment in development costs (2,672) (2,067) (4,139)
Disposals of property, plant and equipment 52 4 5
Finance income 22 35 62
------------------------------------------------- ------------ ------------ --------
Net cash flows from investing activities (2,854) (2,086) (4,175)
------------------------------------------------- ------------ ------------ --------
Financing activities
Issue of ordinary shares 557 87 97
Decrease in bank loans and short-term borrowings - (338) (338)
Dividend paid to Group shareholders (1,014) (873) (873)
------------------------------------------------- ------------ ------------ --------
Net cash flows from financing activities (457) (1,124) (1,114)
------------------------------------------------- ------------ ------------ --------
Increase in cash and cash equivalents 242 380 2,160
------------------------------------------------- ------------ ------------ --------
Movement in cash and cash equivalents:
At start of period/year 11,373 9,323 9,323
Increase in cash and cash equivalents 242 380 2,160
Effects of exchange rate changes (29) 34 (110)
------------------------------------------------- ------------ ------------ --------
At end of period/year 11,586 9,737 11,373
------------------------------------------------- ------------ ------------ --------
Condensed consolidated statement of changes in equity
as at 30 September 2014
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 31 March 2013 794 4,977 171 513 14,910 21,365
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Profit for period 2,504 2,504
Other comprehensive income:
Foreign exchange differences (214) (214)
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Total comprehensive income for the period - - - (214) 2,504 2,290
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Transactions with owners in their capacity as owners:
Dividend paid (873) (873)
Issue of ordinary shares 4 83 87
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Total of transactions with owners in their capacity as
owners 4 83 - - (873) (786)
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Share-based payments 69 69
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
At 30 September 2013 798 5,060 240 299 16,541 22,938
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Profit for period 2,264 2,264
Other comprehensive income:
Foreign exchange differences (88) (88)
Actuarial loss on retirement benefit obligation 3,393 3,393
Deferred tax on actuarial losses (678) (678)
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Total comprehensive income for the period - - - (88) 4,979 4,891
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Transactions with owners in their capacity as owners
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Issue of ordinary shares 10 10
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Total of transactions with owners in their capacity as
owners: - 10 - - - 10
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Share-based payments 87 87
At 31 March 2014 798 5,070 327 211 21,520 27,926
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Profit for period 956 956
Other comprehensive income:
Foreign exchange differences (258) (258)
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Total comprehensive income for the period - - - (258) 956 698
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Transactions with owners in their capacity as owners:
Dividend paid (1,014) (1,014)
Issue of ordinary shares 13 544 557
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Total of transactions with owners in their capacity as
owners 13 544 - - (1,014) (457)
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Share-based payments 61 61
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
At 30 September 2014 811 5,614 388 (47) 21,462 28,228
------------------------------------------------------- ------- ------- ----------- -------- ----------- -------
Notes to the condensed consolidated financial statements
1 Segmental analysis
Business segments
Unaudited Unaudited Audited
6 months end 6 months end Year end
30/09/14 30/09/13 31/03/14
------------ ---------- ------- ------------ ---------- ------- ------------ ---------- --------
Semi- Semi- Semi-
Discontinued conductor Discontinued conductor Discontinued 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 - 15,842 15,842 282 21,497 21,779 282 39,758 40,040
Inter-segmental
revenue - (5,633) (5,633) - (8,508) (8,508) - (15,365) (15,365)
---------------- ------------ ---------- ------- ------------ ---------- ------- ------------ ---------- --------
Segmental
revenue - 10,209 10,209 282 12,989 13,271 282 24,393 24,675
---------------- ------------ ---------- ------- ------------ ---------- ------- ------------ ---------- --------
Profit/(loss)
Segmental result - 1,215 1,215 3 3,179 3,182 3 5,729 5,732
---------------- ------------ ---------- ------------ ---------- ------------ ----------
Net financial
income 22 35 62
Income tax (281) (713) (1,026)
------- ------- --------
Profit after
taxation 956 2,504 4,768
------- ------- --------
Assets and
liabilities
Segmental assets - 31,629 31,629 - 29,608 29,608 - 30,527 30,527
---------------- ------------ ---------- ------------ ---------- ------------ ----------
Unallocated
corporate assets
Investment
property
(including held
for sale) 3,450 3,553 3,550
Deferred
taxation 1,238 2,242 1,271
Current tax
receivable 191 - 283
------- ------- --------
Consolidated
total assets 36,508 35,403 35,631
------- ------- --------
Segmental
liabilities - 2,845 2,845 - 3,863 3,863 - 2,509 2,509
---------------- ------------ ---------- ------------ ---------- ------------ ----------
Unallocated
corporate
liabilities
Deferred
taxation 2,291 2,058 2,224
Current tax
liability 446 422 274
Retirement
benefit
obligation 2,698 6,122 2,698
------- ------- --------
Consolidated
total
liabilities 8,280 12,465 7,705
------- ------- --------
Other segmental
information
Property, plant
and equipment
additions - 256 256 - 58 58 - 103 103
---------------- ------------ ---------- ------- ------------ ---------- ------- ------------ ---------- --------
Development cost
additions - 2,672 2,672 - 2,067 2,067 - 4,139 4,139
---------------- ------------ ---------- ------- ------------ ---------- ------- ------------ ---------- --------
Depreciation - 110 110 - 124 124 - 255 255
---------------- ------------ ---------- ------- ------------ ---------- ------- ------------ ---------- --------
Amortisation - 1,408 1,408 - 1,109 1,109 - 2,588 2,588
---------------- ------------ ---------- ------- ------------ ---------- ------- ------------ ---------- --------
Other
significant
non-cash income - - - - - - - 31 31
---------------- ------------ ---------- ------- ------------ ---------- ------- ------------ ---------- --------
Geographical segments
UK Germany Americas Far East Total
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
---------------------------------------------- ------- ------- -------- -------- --------
Unaudited
Six months ended 30 September 2014
Revenue by origination 4,865 5,282 2,001 3,694 15,842
Inter geographical segmental revenue (2,170) (3,463) - - (5,633)
---------------------------------------------- ------- ------- -------- -------- --------
Revenue to third parties 2,695 1,819 2,001 3,694 10,209
---------------------------------------------- ------- ------- -------- -------- --------
Property, plant and equipment 4,909 114 14 3 5,040
---------------------------------------------- ------- ------- -------- -------- --------
Investment properties including held for sale 3,450 - - - 3,450
---------------------------------------------- ------- ------- -------- -------- --------
Goodwill - 3,512 - - 3,512
---------------------------------------------- ------- ------- -------- -------- --------
Development cost 2,655 4,603 - - 7,258
---------------------------------------------- ------- ------- -------- -------- --------
Total assets 24,991 8,131 1,473 1,913 36,508
---------------------------------------------- ------- ------- -------- -------- --------
Unaudited
Six months ended 30 September 2013
Revenue by origination 6,610 6,956 2,981 5,232 21,779
Inter geographical segmental revenue (2,870) (5,638) - - (8,508)
---------------------------------------------- ------- ------- -------- -------- --------
Revenue to third parties 3,740 1,318 2,981 5,232 13,271
---------------------------------------------- ------- ------- -------- -------- --------
Property, plant and equipment 4,826 70 123 6 5,025
---------------------------------------------- ------- ------- -------- -------- --------
Investment properties including held for sale 3,450 - 103 - 3,553
---------------------------------------------- ------- ------- -------- -------- --------
Goodwill - 3,512 - - 3,512
---------------------------------------------- ------- ------- -------- -------- --------
Development cost 2,148 3,463 - - 5,611
---------------------------------------------- ------- ------- -------- -------- --------
Total assets 23,918 7,134 1,930 2,421 35,403
---------------------------------------------- ------- ------- -------- -------- --------
Audited
Year ended 31 March 2014
Revenue by origination 12,574 11,930 5,856 9,680 40,040
Inter geographical segmental revenue (5,827) (9,538) - - (15,365)
---------------------------------------------- ------- ------- -------- -------- --------
Revenue to third parties 6,747 2,392 5,856 9,680 24,675
---------------------------------------------- ------- ------- -------- -------- --------
Property, plant and equipment 4,752 68 115 2 4,937
---------------------------------------------- ------- ------- -------- -------- --------
Investment properties including held for sale 3,450 - 100 - 3,550
---------------------------------------------- ------- ------- -------- -------- --------
Goodwill - 3,512 - - 3,512
---------------------------------------------- ------- ------- -------- -------- --------
Development cost 2,376 3,812 - - 6,188
---------------------------------------------- ------- ------- -------- -------- --------
Total assets 25,273 6,926 1,491 1,941 35,631
---------------------------------------------- ------- ------- -------- -------- --------
On 13 August 2013 Radio Data Technology Limited which represents
100% of the equipment segment went into liquidation and
consequently after that date the Group only has one segment.
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.
Revenue
Geographical classification of continuing business turnover (by
destination)
Unaudited Unaudited Audited
6 months end 6 months end Year end
30/09/14 30/09/13 31/03/14
GBP'000 GBP'000 GBP'000
--------------------------- ------------ ------------- ---------------
United Kingdom 473 357 823
Rest of Europe 2,640 2,197 4,325
Far East 4,538 6,732 12,386
Americas 2,336 3,396 6,263
Others 222 307 596
--------------------------- ------------ ------------- ---------------
10,209 12,989 24,393
--------------------------- ------------ ------------- ---------------
2 Dividend paid and proposed
A dividend of 6.25p per 5p ordinary share in respect of the year
ended 31 March 2014 was paid on 1 August 2014 (2013: 5.5p per
ordinary share of 5p in respect of the year ended 31 March 2013).
No dividend is proposed in respect of the six months period ended
30 September 2014 (2013: GBPNil per ordinary share of 5p in respect
of the period ended 30 September 2013).
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
6 months end 6 months end Year end
30/09/14 30/09/13 31/03/14
GBP'000 GBP'000 GBP'000
--------------------------- ------------ ------------ --------
UK income tax credit (160) - (300)
Overseas income tax charge 285 174 364
--------------------------- ------------ ------------ --------
Total current tax charge 125 174 64
Deferred tax charge 156 536 960
--------------------------- ------------ ------------ --------
Reported income tax charge 281 710 1,024
--------------------------- ------------ ------------ --------
4 Discontinued operations
On 13 August 2013 Radio Data Technology Limited went into
liquidation and consequently qualifies as a discontinued operation.
The results of the discontinued operation which have been included
in the consolidated income statement are presented below:
Unaudited Unaudited Audited
6 months end 6 months end Year end
30/09/14 30/09/13 31/03/14
GBP'000 GBP'000 GBP'000
-------------------------------------- ------------- ------------- ---------
Revenue - 282 282
Cost of sales - (171) (171)
-------------------------------------- ------------- ------------- ---------
Gross profit - 111 111
Distribution and administration costs - (108) (108)
-------------------------------------- ------------- ------------- ---------
Profit before taxation - 3 3
Taxation - (3) (3)
-------------------------------------- ------------- ------------- ---------
Profit from discontinued operations - - -
-------------------------------------- ------------- ------------- ---------
5 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 2014 16,152,635 16,376,911
----------------------------------- ---------- ----------
Six months ended 30 September 2013 15,915,946 16,296,334
----------------------------------- ---------- ----------
Year end 31 March 2014 15,917,895 16,332,587
----------------------------------- ---------- ----------
6 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.
7 Analysis of cash flow movement in net cash
Net cash at 6 months end Net cash at 6 months end Net cash at 6 months end Net cash at
01/04/13 30/09/13 30/09/13 31/03/14 31/03/14 30/09/14 30/09/14
Cash flow Cash flow Cash flow
GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000 GBP'000
------------------------ ----------- ------------ ----------- ------------ ----------- ------------ -----------
Cash and cash
equivalents 9,323 414 9,737 1,636 11,373 213 11,586
Bank loans and
overdrafts (338) 338 - - - - -
------------------------ ----------- ------------ ----------- ------------ ----------- ------------ -----------
8,985 752 9,737 1,636 11,373 213 11,586
------------------------ ----------- ------------ ----------- ------------ ----------- ------------ -----------
The cash flow above is a combination of the actual cash flow and
the exchange movement.
8 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.
9 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.
10 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 and Chief Executive's statement and operational
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.
11 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 2014
financial statements.
12 General
Other than already stated within the Chairman and Chief
Executive's statement and operational and financial review there
have been no important events during the first six months of the
financial year that have impacted this Half Yearly Financial
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 9 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 Half Yearly Financial 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 2014.
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 2014 is based on the
statutory accounts for the financial year ended 31 March 2014 that
have been filed with the Registrar of Companies and on which the
Auditor gave an unqualified audit opinion.
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 Financial Report can be viewed on the
Company website www.cmlmicroplc.com
13 Approvals
The Directors approved this Half Yearly Report on 17 November
2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
IR GGGBPGUPCGQM
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Cml Microsystems (LSE:CML)
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De Juil 2023 à Juil 2024
