CML Microsystems (LSE:CML), which develops mixed-signal, RF and microwave semiconductors for global communications markets, reported revenue of £20.45m for the year ended 31 March, down from £22.90m in the prior year, as a prolonged customer inventory overhang continued to weigh on the first half.
The loss before taxation narrowed sharply to £0.07m from £0.77m in FY25, aided by the sale of excess land at the company's Oval Park headquarters, though gross margin compressed to 63% from 69% as non-recurring engineering (NRE) income, tied to a new long-term GNSS contract, skewed the revenue mix.
Cash balances rose to £12.80m from £9.92m at 31 March 2025, and net assets climbed to £51.45m from £49.01m, partly reflecting a £1.88m revaluation surplus on remaining Oval Park land and buildings that, under IAS 16, was recorded in other comprehensive income rather than the income statement.
The headline operational development was a 12-year design and supply agreement valued at more than $30m with a leading manufacturer of industrial GNSS equipment, which management described as validating the group's credentials as a systems-level partner.
The board recommended a final dividend of 6p per share, holding the full-year payout steady at 11p, unchanged from FY25.
"We enter FY27 expecting a return to revenue growth," said Group Managing Director Chris Gurry, citing an improving order backlog and easing inventory conditions across its customer base.