CML Microsystems PLC - Final Results
10 Juin 1998 - 9:32AM
UK Regulatory
RNS No 6833u
CML MICROSYSTEMS PLC
10th June 1998
Preliminary Results for the year ended 31st March 1998
Further improvement
10th June 1998
* Turnover #20.6m (1997: #18.2m) - up 13.2%
* Operating profit #2.13m (1997: #1.54m) - up 38.3%
* Profit before tax #2.52m (1997: #1.93m) - up 30.6%
* Earnings per share 10.99p (1997: 8.40p) - up 30.8%
* Recommended dividend per ordinary share for the year of
7.0p, an increase of 14.8% (1997: 6.1p)
* Net cash reserves remain virtually unchanged at the year
end at #8m
* "Performance remained under pressure throughout the
latter half, but the progress made in newer semiconductor
product markets proved a positive factor in the final
results."
* "As usual, this is an early point to offer assurances for
the present year. The most material factor in the
outcome will likely be the growth in benefit achieved
from the semiconductor businesses.. ...subject to
unforeseen circumstances, I feel optimistic that the
results for the present year will show a further
improvement".
G.W. Gurry
Chairman
For further information:
Nigel Clark Lulu Bridges/Peter Willetts
CML Microsystems Plc Tavistock Communications
Tel: 01376 513833 Tel: 0171 600 2288
Email: nclark@cmlmicro.com
World wide web page: www.cmlmicro.com
Chairman's Statement
I am pleased to report that the outcome for the year shows the
further improvement that I had looked forward to when
reviewing the results at the half-way stage. Performance
remained under pressure throughout the latter half, but the
progress made in newer semiconductor product markets proved a
positive factor in the final results.
Group sales for the 12 Month period ending the 31st March,
1998, were up 13% to #20.6M (1997 #18.23M), and operating
profits rose by 38% to #2.126M (1997 #1.535M).
Pre-tax profit came out 30% higher at #2.524M (1997 #1.934M),
with the contribution from net interest earnings virtually
unchanged at #398,000. Earnings per share grew by 30.8% to
10.99p (1997 8.4p).
The Group's net cash reserves stood at #7.972M at the year end
(1997 #8.032M), which reflects delays to the programme for
planned capital spending during the year. The capital
projects involved have now reached the active phase and
material capital expenditure will occur within the current
period.
The balance sheet shows Shareholder funds slightly up at
#18.12M (1997 #17.66M).
Your directors have taken account of these results, and the
forward requirements for capital and other investments, and
they believe that they should recommend an increase in the
dividend for the year just completed. They are therefore
recommending the payment of a dividend of 7p per ordinary
share, an increase of 14.75% on the dividend paid last year
(1997 6.1p). Subject to Shareholder approval, this dividend
will be payable to all Shareholders registered as on the 10th
July, 1998.
For the Group's semiconductor businesses, their successes in
developing a growing reward from the newer products and
improved marketing arrangements formed a welcome counter to
the reducing opportunities seen in mature business areas.
The Singapore-based business, CML Microcircuits (Singapore),
recorded a year of strong growth in both sales and
profitability. CMLM(S) now services the markets for the
Group's products in China and countries in the South East Asia
region, where many important telecom and radiocom equipment
producers are found. CMLM(S) made good progress in developing
the Group's business throughout their region.
The results from other market territories were rather more
varied, although Consumer Microcircuits (the UK based
semiconductor producer) and MX-COM (the US based equivalent
business) each achieved higher overall sales and posted
increased profits.
Telecommunications formed the highest growth market sector for
sales of the Group's semiconductor products, with a material
volume of parts shipped to customers in the Far East, Europe
and South America. These products form part of the new and
growing range of Caller-ID, Billing and Modem devices for
subscriber and network applications.
Wireless Data products also showed a healthy growth in sales,
although forecast shipments to the terminal producers for
certain US and Far East data networks were delayed beyond the
year.
Sales of analogue PMR products were down for the period. The
markets for analogue PMR devices continued to shrink, and
market prospects are centred on the emerging new digital
standards for these services. The Group has introduced
leading solutions to this sector, but the benefits may not
prevent a short term further fall in PMR sales.
Sales of products to the analogue Cellular markets declined to
a negligible level.
Integrated Micro Systems, the Group's advanced semiconductor-
products design centre, gave ongoing support to the Group's
plans in new market areas. IMS has an important role in the
product path for the Group's semiconductor business, and its
results formed an expected cost within the reported figures.
Microsense Systems, the Group's Traffic business, did not make
its expected progress in the closing months. A forecast
positive contribution to Group profit was not achieved,
although a rise in annual sales was posted.
The Field Services division showed growing importance to the
Traffic business. This division encountered some costly hand-
over problems with a major maintenance contract it won for an
area of London, but had completed planned coverage for all
contracts won by the year-end. It formed an important sales
resource for the company's products, as well as contributing
directly and indirectly towards the company's position in its
markets.
The Traffic Products division fell short of reaching
completion of a major system software contract in the period.
The benefits from completion, which includes associated
equipment sales, should fall within the current year.
Radio Data Technology is the Group business producing end-user
equipment for the wireless communication of data and video
information. RDT posted a good increase in total sales, some
35% of which went to export. New video products, introduced
near to the year-end, allow the long distance full colour
transmission of video over new "license free" wireless
frequencies. The Group supported the expansion of RDT's
business last year.
The current year will see the construction and occupation of a
new facility for the Group's UK semiconductor operations, for
a cost in the region of #3m. This aims to ensure that the
Group is well placed to serve the design and part-volume
demands of the future market.
Support will be provided, as necessary, to particular business
activities directed at the overall future benefit to the
Group.
As usual, this is an early point to offer assurances for the
present year. The most material factor in the outcome will
likely be the growth in benefit achieved from the
semiconductor businesses, with Traffic and Wireless-equipment
having an important but lesser influence.
I have some concern that volume part-pricing for semiconductor
parts might come under increased pressure in the Far East. I
am hopeful that a balance, across the markets, will be
achieved.
Subject to my comment, and to any unforeseen circumstances, I
feel optimistic that the results for the present year will
show a further improvement.
In closing, I wish to record the thanks of myself and the
directors to the Company's employees for a successful year,
and to say that we hope to enjoy their future support.
G. W. Gurry
Chairman
CML Microsystems Plc
Preliminary Results for the
year ended 31st March 1998
Group Profit and Loss Account
Unaudited Audited
1998 1997
#'000 #'000
Turnover 20,611 18,233
======= =======
Operating Profit 2,126 1,535
Interest Receivable 457 421
Interest Payable (59) (22)
------- -------
Profit on Ordinary Activities before
Taxation 2,524 1,934
Taxation (870) (679)
------- -------
Profit on Ordinary Activities after
Taxation 1,654 1,255
Minority Interest 95 81
------- -------
1,749 1,336
Proposed Dividend (1,114) (971)
------- -------
Profit Attributable to Shareholders 635 365
======= =======
Earnings Per Share 10.99p 8.40p
======= =======
CML Microsystems Plc
Preliminary Results
Summary Group Balance Sheet
as at 31st March 1998
Unaudited Audited
1998 1997
#'000 #'000
Fixed Assets
Tangible assets 7,177 6,967
======= =======
Current Assets
Stocks 2,414 2,346
Debtors 5,651 4,711
Investments 5,302 5,963
Cash at Bank & in hand 2,671 2,069
------- -------
16,038 15,089
Creditors: Amounts falling due
within one year 5,091 4,381
------- -------
Net Current Assets 10,947 10,708
------- -------
Deferred Taxation 3 13
------- -------
18,121 17,662
======= =======
Capital & Reserves
Called up share Capital 796 796
Share Premium Account 2,349 2,347
Capital Redemption Reserve 155 155
Profit & Loss Account 14,811 14,259
------- -------
18,111 17,557
Minority Interests 10 105
------- -------
18,121 17,662
======= =======
CML Microsystems Plc
Preliminary Results for the
year ended 31st March 1998
Summary Group Cash Flow Statement
Unaudited Audited
1998 1997
#'000 #'000
Net cash inflow from operating activities 2,469 1,494
Returns on investments and servicing
of finance 430 400
Taxation (952) 169
Capital expenditure and financial investment (970) (752)
Equity dividends paid (971) (971)
------- -------
Net cash inflow before financing 6 340
Financing 2 0
------- -------
Increase in cash 8 340
======= =======
Notes:
1. The profit and loss account, balance sheet and cash flow
statement are an abridged 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 7p per Ordinary Share (1997: 6.1p per
Ordinary Share) is recommended in respect of the year
ended 31st March 1998 and will be paid on 7th August 1998
to shareholders on the register as at 10th July 1998.
3. The calculation of earnings per share is on the net basis
on earnings of #1,748,679 (1997: #1,336,371) and on a
weighted average number of 15,918,325 shares (1997:
15,917,338 shares).
END
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