Half Year Results

About this update from Cml Microsystems Plc

18 November 2025   CML Microsystems Plc ("CML", the "Company" or the "Group")   Half Year Results   Steady progress and strengthening order intake underpin confidence in a return to growth   CML Microsystems Plc, which develops mixed-signal, RF and microwave semiconductors for global communications markets, today announces its unaudited results for the six months ended 30 September 2025.   Financial Highlights   ·      Revenue decreased by 27% to £9.18m (H1 FY25: £12.53m) reflecting cyclical low point in end market destocking ·      Profit from operations, after exceptional items of £2.43m (H1 FY25: £0.58m), with a profit before tax of £2.52m (H1 FY25: £0.82m) ·      Basic earnings per share, after exceptional items of 11.57p (H1 FY25: 4.34p) ·      Net cash of £10.68m (31-Mar-2025: £9.92m) ·      The Board is declaring an interim dividend of 5p per ordinary share (H1 FY25: 5.0p)     Operational Highlights   ·      Improved order intake on both a sequential and comparable period basis supports the view that the Group is entering another growth phase ·      MwT's relocation in Silicon Valley and ISO 9001 re-certification are complete, with ERP integration and operational investments improving efficiency and reliability ·      R&D restructuring has balanced internal developments with third-party design work, supporting multiple customer-funded programmes ·      Supply-chain and raw-material issues affecting key products have been resolved, with availability resuming later in the financial year ·      Sales and marketing efforts are strengthening the new business pipeline       Chris Gurry, Managing Director of CML Microsystems Plc, commented on the results:   "The first six months have delivered operational and financial results in line with our expectations, and the improved order intake adds credence to our belief that the Group is entering another growth phase. With the multi-year business transformation complete, our focus is now on sustainable progress as we transition to a more diversified revenue base. The Board is confident that we are on the road to sustained and profitable growth, with the second half period expected to deliver material sequential revenue growth and a return to pre-exceptional operating profitability."    CML Microsystems Plc Chris Gurry, Group Managing Director Nigel Clark, Non-Executive Chairman   Tel: +44(0)1621 875 500     Shore Capital Toby Gibbs James Thomas Lucy Bowden Fiona Conroy (Corporate Broking)    Tel: +44(0)20 7408 4090  Alma Strategic Communications Josh Royston Andy Bryant Robyn Fisher  Tel: +44 (0)20 3405 0212       About CML Microsystems Plc CML develops mixed-signal, RF and microwave semiconductors for global communications markets. The Group utilises a combination of outsourced manufacturing and in-house testing with trading operations in the UK, Asia and USA. CML targets sub-segments within Communication markets with strong growth profiles and high barriers to entry. It has secured a diverse, blue chip customer base, including some of the world's leading commercial and industrial product manufacturers.   Growth in its end markets is being driven by factors such as the appetite for data to be transmitted faster and more securely, the upgrading of telecoms infrastructure around the world and the growing prevalence of private commercial wireless networks for voice and/or data communications linked to the industrial internet of things (IIoT).   The Group is cash-generative, has no debt and is dividend paying.     Chief Executive's review   Overview The first six months of the financial year have delivered both operational and financial results in line with management's expectations. An improved order intake, on both a sequential and comparable period basis, adds credence to our belief that the Group is entering another growth phase. Following a multi-year business transformation the emphasis is now on sustainable progress as we transition to a more diversified revenue base that will drive long-term value creation.   Operations The prior year delays with relocating MwT to new premises in Silicon Valley are behind us. The local operations have been integrated into the Group's global ERP system which will deliver time and cost efficiencies going forward and, following a successful audit in the summer, re-certification to the ISO 9001 standard was achieved. Investments are now being made to improve production testing capabilities, leading to higher throughput and an enhanced level of reliability.   Strong investment in new product R&D has continued and remains crucial for our future growth objectives. Our extensive engineering resources were restructured at the beginning of the calendar year with one aim being to deliver a more appropriate balance between internal new product developments and the separate, but strategically important, provision of third-party design services. The teams are actively engaged in numerous customer-funded and proprietary product programmes, each addressing technology developments and growth areas within our target vertical markets.   Issues previously reported on proactive R&D activities to ensure security of supply affecting a selection of the Group's core products, along with unplanned engineering effort to restore shipment availability of specific SRF products impacted by China-related raw material restrictions have been successfully navigated. It is expected availability of the affected products will commence in the final months of the financial year.   The sales and marketing teams have made good progress raising awareness of CML as a trusted partner in those target sectors where the CML brand is less recognised. There has been an increase in the number of meaningful opportunities being uncovered which is elevating the new business pipeline and should propel the Company forward over time.   Markets & products The Group is gaining momentum through its strategy to grow and diversify future revenue streams.   In July 2025, we announced the signing of a twelve year design and supply contract with a leading manufacturer of industrial global navigation satellite system (GNSS) equipment. The contract is valued at over $30m and highlights the value that customers place on our inherent capabilities, not only at the semiconductor development level, but also at the RF systems level within high-performance wireless communications sectors.   The initial two-to-three-year design period will pave the way for substantial product sales, where CML's ability to meet stringent manufacturing requirements and provide long-term supply chain resilience are additional key attributes. Work has formally commenced on the project with early-stage meetings and milestones having been completed.   The second half of the year will see the release of our integrated single chip solution for Digital Radio Mondiale (DRM), to accompany the already released DRM1000 module. By way of update, the market is on a promising trajectory with substantial adoption in India and China, with the latter having now officially adopted DRM as a national standard for digital broadcasting in both its Medium Wave (MW) bands, on a provincial basis, and Short Wave (SW) on a national and international basis. This move is part of a broader effort to modernise the country's radio broadcasting infrastructure. With its capacity for high-quality broadcasting and emergency messaging, coupled with relatively affordable infrastructure costs, recently available portable end products powered by CML technology should help DRM establish itself as a key player in the global digital radio landscape over time. There are challenges to overcome; regulatory compliance differs by region, broadcasters need to accelerate adoption and consumer awareness is low, however as an early market entrant working with key players in the space, we are positioned well to benefit from the anticipated growth over the medium term.   Several design-wins and first production orders were recorded across our current focus market sectors; including professional communications, industrial IoT, network infrastructure and defence. A refining of the target applications within our chosen market verticals is underway after analysis following 18 months of customer and markets interaction with an enlarged product portfolio. That process will be finalised and implemented during the remainder of the financial year. As a result we will enter FY27 optimised for future success.   Outlook The last few years have tested our resilience, but we have embraced this period as an opportunity for strategic transformation. Through focused efforts in enhancing our business model and adapting to market dynamics, we are optimistic about leaving the toughest challenges behind. We are beginning to see the fruits of our labour and are confident that we are on the road to sustained and profitable growth. The Board currently expects the second half of the year to deliver material sequential revenue growth and a return to pre-exceptional operating profitability for that period.   Financial summary Revenues for the first half of the financial year were £9.18m (H1 FY25: £12.53m), a 27% decline against the prior year first half. The decline was across the board regionally and stems from the tail-end of an extensive customer over inventory situation and the inability to supply a selection of SµRF products due to the need to switch raw material supplier. As previously mentioned, the raw material issue was successfully navigated and shipments of the affected products will recommence towards the end of the financial year. On a sequential basis, the decline was 11%, aligning with the expectation that this year's overall performance will be heavily weighted to the second half period.   The overall product mix along with a higher proportion of NRE-related R&D activities being included within the cost of sales led to slightly lower margins of 67.1% (H1 FY25: 69.8%), delivering a gross profit of £6.16m (H1 FY25 £8.74m). The prior financial year included several costs associated with the running of two operating facilities in California due to various delays in relocating to new premises. Having successfully moved to a new single facility in March 2025, we are now benefiting from lower running costs. When combined with an ongoing focus on operational efficiencies this has led to a very meaningful reduction in distribution and administration costs to £7.13m (H1 FY25: £7.98m).   In July 2025 an agreement was signed to dispose of surplus land at the Group's headquarters for a total of £7m, demonstrating further progress in realising value from non-core property assets. The first cash amount of £4m has been received, leading to an exceptional gain on sale being recognised in H1 of £3.41m. The remaining £3m cash payment falls due under unconditional contract terms in March 2026. Excluding the exceptional gain on sale of land, the Group delivered a loss from operations of £0.98m (H1 FY25: profit of £0.58m). After factoring in net finance and other income, the pre-exceptional loss before tax was £0.89m (H1 FY25: profit of £0.82m).   On a reported basis, profit from operations was £2.43m, with a profit before tax of £2.52m being recorded.   The Board is declaring an interim dividend of 5p per ordinary share (H1 FY25: 5.0p), payable on 12 December 2025 to shareholders on the register on 28 November 2025.   In recent years there was a need to keep raw material inventory levels relatively elevated as we worked through several sourcing and over inventory issues that arose following the post-pandemic landscape, including geopolitical uncertainties. Having successfully navigated through to this point and barring any new issues emerging, the expectation is for inventory levels to reduce to a more normalised level over the next two years. At 30 September 2025 inventories were valued at £5.26m (31 March 2025: £5.66m).   The balance sheet remains strong with disciplined cash management contributing to cash/cash equivalents totalling £10.68m at 30 September 2025 (31 March 2025: £9.92m). Cash outflows included investment in research and development (£2.96m), a final dividend payment (£0.96m) and the purchase of property, plant and equipment (£0.46m). The research and development figure includes an amount of £0.72m that was expensed, with the balance being capitalised.         Chris Gurry Group Managing Director 18 November 2025   Condensed consolidated income statement for the six months ended 30 September 2025     Unaudited 6 months ended Unaudited 6 months ended Audited year ended Before exceptional items   Exceptional items   30/09/25 Total Before exceptional items   Exceptional items   30/09/24 Total Before exceptional Items   Exceptional items   31/03/25 Total £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 Continuing operations       Revenue (note 3) 9,178 - 9,178 12,530 - 12,530 22,899 - 22,899 Cost of sales (3,020) - (3,020) (3,786) - (3,786) (7,010) - (7,010) Gross profit 6,158 - 6,158 8,744 - 8,744 15,889 - 15,889 Distribution and administration costs   (7,134)   -   (7,134)   (7,983)   -   (7,983)   (15,138)   -   (15,138) Share-based payments (145) - (145) (159) - (159) (284) - (284) (1,121) - (1,121) 602 - 602 467 - 467 Other operating income 145 - 145 (27) - (27) 66 - 66 Other gains/(losses) - 3,406 3,406 - - - - (1,647) (1,647) Profit/(loss) from operations (976) 3,406 2,430 575 - 575 533 (1,647) (1,114) Other income 14 - 14 14 - 14 31 - 31 Finance income 122 - 122 274 - 274 423 - 423 Finance expense (50) - (50) (48) - (48) (106) - (106) Profit/(loss) before taxation (890) 3,406 2,516 815 - 815 881 (1,647) (766) Income tax (charge)/credit (82) (591) (673) (118) - (118) 715 33 748 Profit/(loss) after taxation for period attributable to equity owners of the parent     (972)     2,815     1,843     697     -     697     1,596     (1,614)     (18) All financial information presented relates to continuing activities.   Earnings per share pre-exceptional items from total operations attributable to the ordinary equity holders of the Company:   Basic (loss)/earnings per share                                                                         (6.10)p 4.34p 9.95p Diluted (loss)/earnings per share     (6.10)p 4.32p 9.93p   Earnings per share from total operations attributable to the ordinary equity holders of the Company:   Basic earnings/(loss) per share                                                                         11.57p 4.34p (0.11)p Diluted earnings/(loss) per share     11.54p 4.32p (0.11)p   The following measure is considered an alternative performance measure, not a generally accepted accounting principle. This ratio is useful to ensure that the level of borrowings in the business can be supported by the cash flow in the business. For definition and reconciliation see note 9.   Adjusted EBITDA     1,203 2,876 5,218         Condensed consolidated statement of total comprehensive income for the six months ended 30 September 2025     Unaudited 6 months ended   Unaudited 6 months ended   Audited year ended 30/09/25 30/09/24 31/03/25 £'000 £'000 £'000 Profit/(loss) for the period 1,843 697 (18) Other comprehensive income/(expense):   Items that will not be reclassified subsequently to profit or loss:   Re-measurement of defined benefit obligation - - 803 Deferred tax on actuarial gain - - (201) Items reclassified subsequently to profit or loss upon derecognition:   Foreign exchange differences (722) (1,030) (501) Other comprehensive (loss)/income for the period net of taxation attributable to the equity holders of the parent   (722)   (1,030)   101 Total comprehensive income/(loss) for the period attributable to the equity holders of the parent   1,121   (333)   83                                                   Condensed consolidated statement of financial position as at 30 September 2025   Unaudited Unaudited Audited 30/09/25 30/09/24 31/03/25 £'000 £'000 £'000 Assets   Non-current assets   Goodwill 12,200 13,853 12,625 Other intangible assets 2,408 2,942 2,702 Development costs 17,911 16,022 16,944 Property, plant and equipment 5,816 5,643 5,685 Right-of-use assets 1,824 2,269 2,115 Deferred tax assets 1,039 733 1,569 41,198 41,462 41,640 Current assets   Property, plant and equipment - held for sale 529 1,124 1,124 Investment properties - held for sale 1,975 1,975 1,975 Inventories 5,263 4,768 5,663 Trade receivables and prepayments 4,429 3,354 2,867 Current tax assets 103 303 - Cash and cash equivalents (note 8) 8,780 9,145 7,782 Short-term cash deposits (note 8) 1,901 5,834 2,136 22,980 26,503 21,547 Total assets 64,178 67,965 63,187 Liabilities   Current liabilities   Trade and other payables 6,286 6,268 4,833 Provisions 192 196 196 Lease liabilities 370 385 395 Current tax liabilities 59 127 47 6,907 6,976 5,471 Non-current liabilities   Deferred tax liabilities 4,771 5,279 5,324 Trade and other payables 447 2,509 447 Lease liabilities 1,623 2,003 1,863 Retirement benefit obligation 1,076 1,696 1,076 7,917 11,487 8,710 Total liabilities 14,824 18,463 14,181 Net assets 49,354 49,502 49,006 Capital and reserves attributable to equity owners of the parent   Share capital 825 825 825 Share premium 2,230 2,264 2,258 Capital redemption reserve 8,372 8,372 8,372 Other reserve 2,929 3,073 2,929 Treasury shares - own share reserve (2,101) (2,143) (2,175) Share-based payments reserve 1,002 814 917 Foreign exchange reserve (1,334) (1,141) (612) Retained earnings 37,431 37,438 36,492 Total shareholders' equity 49,354 49,502 49,006   Condensed consolidated cash flow statement for the six months ended 30 September 2025   Unaudited Unaudited Audited 6 months ended 6 months ended year ended 30/09/25 30/09/24 31/03/25 £'000 £'000 £'000 Operating activities   Profit/(loss) for the period before taxation 2,516 815 (766) Adjustments for:   Foreign exchange movement 74 (68) (48) Depreciation - on property, plant and equipment 322 269 563 Depreciation - on right-of-use assets 217 444 899 Impairment of goodwill - - 1,531 Amortisation of development costs 1,263 1,159 2,402 Impairment of other tangible assets - - 116 Amortisation of other intangibles 218 256 506 Profit on disposal of fixed assets (3,406) - - Movement in non-cash items (retirement benefit obligation) 90 90 183 Share-based payments 145 159 284 Finance income (122) (274) (423) Finance expense 50 48 106 Movement in working capital (25) (1,016) (2,201) Cash flows from operating activities 1,342 1,882 3,152 Income tax paid (652) (119) (60) Net cash inflow from operating activities 690 1,763 3,092 Investing activities   Purchase of property, plant and equipment (463) (264) (595) Investment in development costs (2,244) (2,057) (4,217) Repayment/(investment) in fixed term deposits (net) 235 1,117 4,815 Proceeds from sale of fixed assets 4,000 - - Acquisition of subsidiary (net of cash acquired) - (956) (3,786) Investment in intangibles (20) - (32) Finance income 122 274 423 Net cash inflow/(outflow) investing activities 1,630 (1,886) (3,392) Financing activities   Lease liability repayments (226) (403) (884) Issue of ordinary shares (net of expenses) 46 63 475 Purchase of own shares for treasury - (446) (897) Dividends paid to shareholders (956) (961) (1,765) Finance expense (9) (10) (20) Net cash outflow from financing activities (1,145) (1,757) (3,091) Increase/(decrease) in cash, cash equivalents and short-term cash deposits 1,175 (1,880) (3,391) Movement in cash and cash equivalents:   At start of period/year 7,782 11,262 11,262 Increase/(decrease) in cash, cash equivalents and short-term cash deposits 1,175 (1,880) (3,391) Effects of exchange rate changes (177) (237) (89) At end of period 8,780 9,145 7,782 Cash flows presented exclude sales taxes. Further cash-related disclosure details are provided in note 8.   Changes in liabilities arising from financing activities relate to lease liabilities only.       Condensed consolidated statement of changes in equity for the six months ended 30 September 2025   Capital Share- Foreign Share Share redemption Other Treasury based exchange Retained capital premium reserve reserve shares payments reserve earnings Total Unaudited £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 At 31 March 2024 825 2,327 8,372 3,073 (1,822) 666 (111) 37,746 51,076 Profit for period 697 697 Other comprehensive income net of taxes Foreign exchange differences (1,030) (1,030) Total comprehensive income for the period   -   -   -   -   -   -   (1,030)   697   (333) 825 2,327 8,372 3,073 (1,822) 666 (1,141) 38,443 50,743 Transactions with owners in their capacity as owners Issue of treasury shares (63) 124 61 Purchase of own shares - treasury (445) (445) Dividends paid (961) (961) Total of transactions with owners in their capacity as owners     -     (63)     -     -     (321)     -     -     (961)     (1,345) Share-based payments 159 159 Deferred tax on share-based payments (55) (55) Cancellation/transfer of share-based payments (11) 11 - At 30 September 2024 825 2,264 8,372 3,073 (2,143) 814 (1,141) 37,438 49,502 Loss for period (715) (715) Other comprehensive income net of taxes Foreign exchange differences 529 529 Re-measurement of defined benefit obligation 803 803 Deferred tax on actuarial gain (201) (201) Total comprehensive income for the period   -   -   -   -   -   -   529   (113)   416   825 2,264 8,372 3,073 (2,143) 814 (612) 37,325 49,918 Transactions with owners in their capacity as owners Issue of treasury shares - acquisition (144) (144) Issue of treasury shares (6) 420 414 Purchase of own shares - treasury   (452) (452) Dividends paid (804) (804) Total of transactions with owners in their capacity as owners     -     (6)     -     (144)     (32)     -     -     (804)     (986) Share-based payment charge 125 125 Deferred tax on share-based payments (51) (51) Cancellation/transfer of share-based payments (22) 22 - At 31 March 2025 825 2,258 8,372 2,929 (2,175) 917 (612) 36,492 49,006   CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY continued for the six months ended 30 September 2025   Capital Share- Foreign Share Share redemption Other Treasury based exchange Retained capital premium reserve reserve shares payments reserve earnings Total Unaudited £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 £'000 At 31 March 2025 825 2,258 8,372 2,929 (2,175) 917 (612) 36,492 49,006 Profit for period               1,843 1,843 Other comprehensive income net of taxes                   Foreign exchange differences             (722)   (722) Total comprehensive income for the period   -   -   -   -   -   -   (722)   1,843   1,121 825 2,258 8,372 2,929 (2,175) 917 (1,334) 38,335 50,127 Transactions with owners in their capacity as owners                   Issue of treasury shares   (28)     74       46 Dividends paid               (956) (956) Total of transactions with owners in their capacity as owners     -     (28)     -     -     74     -     -     (956)     (910) Share-based payments           145     145 Deferred tax on share-based payments               (8) (8) Cancellation/transfer of share-based payments           (60)   60 - At 30 September 2025 825 2,230 8,372 2,929 (2,101) 1,002 (1,334) 37,431 49,354   Notes to the condensed consolidated financial statements for the six months ended 30 September 2025   1 Basis of preparation and approval of interim statements The financial information for the six months ended 30 September 2025 and for the six months ended 30 September 2024 is unaudited.   The interim financial statements for the six months to 30 September 2025 do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended 31 March 2025.   The financial information has been prepared on the basis of UK adopted international accounting standards (IFRSs) that the Directors expect to be applicable as at 31 March 2026.   The accounting policies adopted in the preparation of the interim financial statements are consistent with those set out in the Group's Annual Report and Financial Statements 2025, which were prepared in accordance with IFRSs.   These interim financial statements do not comprise statutory accounts within the meaning of Section 435 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2025 were approved by the Board on 7 July 2025 and delivered to the Registrar of Companies. The report of the auditor on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498(2) or Section 498(3) of the Companies Act 2006.   AIM-quoted companies are not required to comply with IAS 34 'Interim Financial Reporting' and accordingly the Company has not applied this standard in preparing this report.   The interim financial statements were approved by the Board of Directors on 18 November 2025.   2 Segmental analysis Reported segments and their results, in accordance with IFRS 8, are based on internal management reporting information that is regularly reviewed by the Group Managing Director, who is 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.   The Group is focused for management purposes on one primary reporting segment, being the semiconductor segment, with similar economic characteristics, risks and returns, and the Directors therefore consider there to be one single segment, being semiconductor components for the communications industry.   Geographical segments (by origin)                                                                   Unaudited Unaudited Audited 6 months ended 6 months ended year ended 30/09/25 30/09/24 31/03/25 £'000 £'000 £'000 Revenue to third parties   UK 1,642 618 4,623 Americas 2,308 5,983 7,500 Far East 5,228 5,929 10,776 Total 9,178 12,530 22,899     Unaudited Unaudited Audited 6 months ended 6 months ended year ended 30/09/25 30/09/24 31/03/25 £'000 £'000 £'000 Total assets   UK 48,813 51,597 46,740 Americas 4,620 5,747 6,036 Far East 10,745 10,621 10,411 Total 64,178 67,965 63,187   3 Revenue The geographical classification of business turnover (by destination) is as follows:                                                                                                                                                                 Unaudited Unaudited Audited 6 months ended 6 months ended year ended 30/09/25 30/09/24 31/03/25 £'000 £'000 £'000 Europe 1,772 2,713 4,485 Far East 5,227 6,003 10,856 Americas 1,829 3,486 6,827 Other 350 328 731 9,178 12,530 22,899   The operational classification of business turnover (by market) is as follows:       Unaudited Unaudited Audited 6 months ended 6 months ended year ended 30/09/25 30/09/24 31/03/25 £'000 £'000 £'000 Semiconductor 8,770 12,325 22,537 Design and development 408 205 362 9,178 12,530 22,899 Semiconductor products, goods and services are transferred at a point in time whereas design and development revenue is transferred over the period of the contract on a percentage basis of contract completion, as detailed in the Group's revenue recognition policy within its published Annual Report.   The Group does not have any contract assets or liabilities at 30 September 2025 (£Nil at 31 March 2025) from semiconductors as it does not fulfil any of its performance obligations in advance of invoicing to its customer. The Group has contract assets of £1,549,000 as at 30 September 2025 (£25,000 at 31 March 2025) from design and development and contract liabilities of £2,000 as at 30 September 2025 (£Nil at 31 March 2025) from design and development. The Group has contractual balances in the form of trade receivables. See note 20 for disclosure of this in the Annual Report and Accounts for the year ended 31 March 2025.   The Group expects all contractual costs capitalised or any outstanding performance obligations will be completed within the next twelve months.   4 Dividends paid and interim dividend The Board is declaring an interim dividend of 5p per ordinary share for the half year ended 30 September 2025, payable on 12 December 2025 to shareholders on the Register on 28 November 2025.   A final dividend of 6p per ordinary share was paid on 15 August 2025 and an interim dividend of 5p per ordinary share was paid on 13 December 2024, totalling 11p per ordinary share paid for the year ended 31 March 2025 (2024: 11p per ordinary share paid for the year ended 31 March 2024).   5 Other gains/(losses) Unaudited Unaudited Audited 6 months ended 6 months ended year ended 30/09/25 30/09/24 31/03/25 £'000 £'000 £'000 Impairment of goodwill - - (1,531) Impairment of intangible assets - - (116) Profit on sale of fixed assets 3,406 - - 3,406 - (1,647)   During the year ended 31 March 2025, the Group restructured its engineering resources which led to the goodwill and intangible assets relating to the acquisition of PRFI Ltd in March 2020 to be impaired to £Nil.   During the period ending 30 September 2025, the Group sold excess land at the Group's headquarters in Essex.     6 Income tax expense/(credit) Unaudited Unaudited Audited 6 months ended 6 months ended year ended 30/09/25 30/09/24 31/03/25 £'000 £'000 £'000 Current tax   UK corporation tax on results of the period/year 628 (121) - Adjustment in respect of previous years (27) 2 1 601 (119) 1 Foreign tax on results of the period/year 97 149 228 Total current tax 698 30 229 Deferred tax   Deferred tax - origination and reversal of temporary differences   2 70 (910) Adjustments to deferred tax charge in respect of previous years   (27) 18 (67) Total deferred tax (25) 88 (977) Tax expense/(credit) on profit on ordinary activities 673 118 (748)   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.   The tax charge for the six months ended 30 September 2025 has been calculated by applying the effective tax rate which is expected to apply to the Group for the year ending 31 March 2026, using rates substantially enacted by 30 September 2025.   7 Earnings per share Unaudited Unaudited Audited 6 months ended 6 months ended year ended 30/09/25 30/09/24 31/03/25 Earnings per share pre-exceptional items attributable to the ordinary equity holders of the Company:   Basic (loss)/earnings per share (6.10)p 4.34p 9.95p Diluted (loss)/earnings per share (6.10)p 4.32p 9.93p Earnings per share from total operations attributable to the ordinary equity holders of the Company:   Basic earnings/(loss) per share 11.57p 4.34p (0.11)p Diluted earnings/(loss) per share 11.54p 4.32p (0.11)p   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, as explained below:   Ordinary 5p shares Weighted average Diluted number number Six months ended 30 September 2025 15,931,609 15,961,715 Six months ended 30 September 2024 16,047,329 16,141,190 Year ended 31 March 2025 16,030,969 16,065,979     8 Cash, cash equivalents and short-term deposits Unaudited Unaudited Audited   30/09/25 30/09/24 31/03/25 £'000 £'000 £'000 Cash on deposit 3,531 2,176 2,762 Cash at bank 5,249 6,969 5,020 8,780 9,145 7,782 Short-term cash deposits 1,901 5,834 2,136 10,681 14,979 9,918   9 Adjusted EBITDA Adjusted earnings before interest, tax, depreciation and amortisation ('Adjusted EBITDA') is defined as profit before taxation and before all interest, tax, depreciation and amortisation charges, exceptional items and before share-based payments. The following is a reconciliation of the Adjusted EBITDA for the three periods presented: Unaudited Unaudited Audited 6 months ended 6 months ended year ended 30/09/25 30/09/24 31/03/25 £'000 £'000 £'000 Profit/(loss) before taxation (earnings) 2,516 815 (766) Adjustments for:   Finance income (122) (274) (423) Finance expense 50 48 106 Depreciation 322 269 563 Depreciation - right-of-use assets 217 444 899 Amortisation of development costs 1,263 1,159 2,402 Amortisation of other intangibles 218 256 506 Share-based payments 145 159 284 Profit on disposal of fixed assets (3,406) - - Impairment of goodwill - - 1,531 Impairment of intangible assets - - 116 Adjusted EBITDA 1,203 2,876 5,218   10 General Other than already stated within the Chief Executive's 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 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 Report has not been audited by the Group auditor.   A copy of this Half Yearly Report can be viewed on the Company website: www.cmlmicroplc.com.   11 Approvals The Directors approved this Half Yearly Report on 18 November 2025.       Glossary   5G                           Fifth Generation Cellular Network Technology AIM                         Alternative Investment Market AMR                       Automatic Meter Reading DRM                       Digital Radio Mondiale EBITDA                 Earnings before interest, tax, depreciation and amortisation FY                           Full Year GaAs                      Gallium Arsenide GaN                        Gallium Nitride H1                           First Half (Financial Year) IAS                          International Accounting Standards IC                            Integrated Circuit IFRS                       International Financial Reporting Standards IIoT                         Industrial Internet of Things IoT                          Internet of Things LMR                       Land Mobile Radio M2M                       Machine to Machine MMIC                     Monolithic Microwave Integrated Circuit PMR                       Private Mobile Radio R&D                       Research and Development RF                           Radio Frequency RFID                       Radio Frequency Identification   CML Microsystems Plc Oval Park, Langford Maldon, Essex CM9 6WG   T: +44 (0)1621 875500   [email protected]   Visit us online at www.cmlmicroplc.com                        

View stock analysis, news, and events for Cml Microsystems Plc