Business
Trading Update
Trading Update.
About this update from Cml Microsystems Plc
[{"type":"text","content":"\n\n27 March 2025\nCML Microsystems Plc\n(\"CML\", the \"Company\" or the \"Group\") \nTrading Update\nCML today announces a trading update for the year ended 31 March 2025.\nThe market environment through the second half of the financial year continued to be challenging, with the softness from industrial markets persisting, particularly affecting established customers for the Groups anchor products. Nevertheless, good progress has been made with expanding the opportunity pipeline for the enlarged product portfolio and there are encouraging signs that we may be at, or very near, the bottom of the inventory correction that has featured strongly across recent reporting periods.\nOperationally, the Group is pleased to report that the US Silicon Valley team has just completed its relocation to a new, smaller facility. This follows a protracted period whereby the Group was incurring additional expense while awaiting the issue of the relevant building permits to allow planned refurbishment to take place and the move to be completed.\nFrom a trading perspective, revenue for the full year to 31 March 2025 will comprise a product mix quite different from that originally envisaged, with SµRF products making a higher contribution than expected and the core product range somewhat less. Total revenue is now expected to be broadly flat against the prior year. The combined effect of product mix and temporarily elevated US running costs resulted in a second half trading period that was only marginally profitable, which is below market expectations. EBITDA is expected to exceed £5m, with a net cash balance of just over £9m being ahead of the planned level when ad hoc share-buybacks of circa £0.9m are taken into account. The FY25 EBITDA estimate excludes an exceptional goodwill write-off associated with the restructuring of the UK R&D team, as communicated at the time of the interim results in November 2024.\nIn recent years, the Group has significantly expanded its semiconductor product portfolio, both organically and through acquisition. These innovative solutions have shown early positive signs of market acceptance, evidenced by strong growth in the opportunity pipeline. We are confident that they will drive future growth, and through the ongoing penetration of adjacent markets, help mitigate the impact of demand fluctuations across s...