CML Microsystems PLC on Tuesday reported profit growth in its latest half year, as it noted high inflation and a difficult backdrop in the semiconductor market.

The Essex, England-based developer of mixed-signal, radio frequency and microwave semiconductors for communications markets said in the six months to September 30, pretax profit rose 2.3% to £1.9 million from £1.8 million the prior year.

Revenue grew 5.3% to £10.6 million from £10.0 million. ‘Amidst an inflationary environment, global economic uncertainty and a backdrop of several industry commentators predicting the semiconductor market will shrink by double-digit percentage points in 2023, the delivery of revenue growth through the first six-month period is a pleasing outcome and serves to highlight the resilience of our business,’ CML Microsystems said.

The company maintained its interim dividend of 5 pence per share.

Managing Director Chris Gurry said: ‘The financial and operational progress made during the period has been pleasing and gives the board a great deal of confidence as we continue to deliver value to our shareholders.’

Chair Nigel Clark said: ‘Notwithstanding the macroeconomic environment, the board has confidence in the strategy being followed and believes the robustness of our business model and a continued focus on sustainable growth will deliver a meaningful uplift in performance beyond the current year.’

CML Microsystems shares fell 5.9% to 358.50 pence each on Tuesday morning in London.

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