CML Microsystems plunges after cautioning on current year

10th Jun 2014 08:40

CML Microsystems saw its shares slide on Tuesday morning after the group said it would continue to experience the effects of customer events within storage markets and cyclical volatility from wireless in the current year. That came as its full-year results for the 12 months ended March 31st revealed the effects of these problems on its second half, although the group still delivered record profits. Revenue for the year was marginally lower at £24.39m, compared to £24.65m in 2013, with pre-tax profit up 3% from £5.45m to £5.79m. Basic earnings per share climbed 7% to 29.96p from 28.01p a year earlier. Managing Director Chris Gurry said: "The company was able to deliver on market expectations for a firm full-year improvement in profitability although, as evidenced through the period under review, it was record first half revenues and profits that drove performance. "Second half sales were affected by the previously explained and unforeseen customer events within storage markets and this, coupled with the cyclical volatility from wireless, created a headwind for revenues that will also impact the current year. "In reporting on a year when we have delivered record profits, it is disappointing to now convey short-term caution but, beyond this year, the board is confident of delivering a return to revenue growth."Despite the caution, the group upped its final dividend payment by 14% from 5.5p to 6.25p. At the year-end, it had zero debt and a net cash position of £11.37m, up from £8.98m a year earlier. The share price had slumped 20.93% to 425p by 08:52 on Tuesday.NR