9 August 2023

CML Microsystems Plc

("CML", the "Company" or the "Group") 

AGM Statement

CML Microsystems Plc, which develops mixed-signal, RF and microwave semiconductors for global communications markets, will hold its Annual General Meeting today at 11.00am at which Nigel Clark, Executive Chairman, will provide the following trading update.

Trading Update

The Group has commenced its new financial year positively and remains on course to achieve a year of further growth and improvements in revenues and operational profit.  

Discussions with the relevant US authorities in respect of the proposed acquisition of Microwave Technology, Inc (MwT) have progressed, with a conclusion expected prior to 30 September 2023. A further announcement will be made at the appropriate time.

Over the last three years, the Board has successfully steered the business through a number of significant events. We have delivered a return in excess of £24m to shareholders through a combination of dividends, capital repayments and share buybacks. Perhaps less noticeable has been the reduction and simplification of the Group's operating structure along with a strengthening of the senior management team, allowing the business to operate very successfully with a focussed Board composition.

As part of our ongoing commitment to the long-term sustainable growth of the business and in light of the pending MwT acquisition and enlargement of the Group, the current composition of the Board is being enhanced. Accordingly, over the next few months I will be reverting to my previous non-executive Chairman's role. This is currently expected to coincide with the appointment of additional executive and independent non-executive directors to the Board.

The Board is pleased with the progress being made by the business as it continues to successfully execute its strategic plan and remains excited by the growth that a combination of organic and acquisitive growth can deliver.

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.

The spread of its customers and diversity of the product range largely protects the business from the cyclicality usually associated with the semiconductor industry. 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.