CML Microsystems climbs as it hails transformational year

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CML Microsystems Plc (LON:CML) is upbeat about its prospects after what it calls a transformational year.

The company, which develops mixed-signal, RF and microwave semiconductors for global communications markets, sold its storage business for US$49mln in cash and returned more than £10mln to shareholders.

Full year revenues fell from £15mln to £12.5mln reflecting the effect of COVID-19 on its markets. Pretax profits came in at £0.01mln after share-based payments and finance income.

But its order book is at a record level, as is its cash balance of £31.9mln.

It has recommended a final special dividend of 50p a share.

Group managing director Chris Gurry said: “This has clearly been a transformational year for the business. We made the decision to dispose of the storage division to focus on an expanding communications market opportunity and the board believes that the group can now scale without the distraction of conflicting divisional and operational investment needs.

“We start the new trading year in a much stronger position than one year ago. Headwinds remain, including the pandemic, trade uncertainty between China and the USA and the ongoing semiconductor capacity issues that are widely reported. That said, the underlying feeling within the company is one of opportunity and optimism evidenced by our day-to-day activities and the pipeline of opportunity that we see.”

Analyst Martin O’Sullivan at the company’s joint broker Shore Capital said: “Despite recent outperformance, we regard the current market value as unduly low relative to earnings and prospects (and the final special dividend). Broadening recognition of CML’s strategy, growth opportunity and financial asset backing should provide scope for a material rerating, in our view.”

CML’s shares are currently up 6.06% or 22.5p at 393.5p.

9.23am: Digital advisory group in demand

Kin and Carta PLC (LON:KCT), which advises companies on how best to exploit digital technology, is seeing growing demand for its services as the economy begins to improve.

The company, formed from the ashes of the St Ives printing business, said it expects revenues for the year to July to grow by 10% to around £150mln, with profits up 35%-40% to £14.5mln.

Both of these are well ahead of current market expectations.

Based on current performance and backlog of orders, it expects accelerating growth in net revenue to around 20% and improving underlying operating margin of 12-13% for the following financial year.

The company recently announced that £3.7mln of the £6.7mln US paycheck protection programme loan it took out to mitigate the effects of the pandemic had been forgiven by the government. Some £0.8mln had already been forgiven, and the balance of £1.8mln after adjusting for foreign exchange movements will be repaid in May 2022.

Kin and Carta’s shares have jumped 16.16% or 32p to 230p. 

8.46am: Home credit firm to beat expectations

International Personal Finance PLC (LON:IPF) shares have moved 8% higher to 137.6p in early trading after reporting that business has picked up in recent weeks despite the continuing effects of the pandemic.

The home credit company said in April it expected debt collections to weaken during the first half of this year. But in fact its actual collections performance has continued to be strong, giving a faster than expected improvement in impairment as a percentage of revenue.

Meanwhile credit issued has been broadly in line with management forecasts, so overall it expects a better outcome for the year than it had anticipated.

Analyst Gary Greenwood at Shore Capital said: “Today’s positive update sees us nudge our fair value up to 135p [from 130p], which continues to factor in a 25% haircut for regulatory risk (mainly in respect of price capping risk in Poland).”

Elsewhere the transfer of a stake in the Brockham oil field in Surrey has benefited both buyer and seller.

Alba Mineral Resources PLC (LON:ALBA) has sold its 5% share to Angus Energy PLC (LON:ANGS) in a deal which involves Alba paying £38,400 in cash and shares to Angus to settle “certain back costs and a contribution toward eventual abandonment costs.”

Angus said the transfer aligned its interests in the Brockam and Lidsey field in West Sussex.

Angus managing director George Lucan said: “It is the company’s expectation that moderate oil production and the facility of water injection at Brockham, together with 9.7 million barrels of Oil In Place at Lidsey, will represent a good value proposition for shareholders, and for possible farminees, once seismic re-interpretation is complete and permissions are in place for a side-track at Lidsey.”

Alba is up 7.44% at 0.26p while Angus has added 6.67% to 0.8p.

Proactive news headlines

Keywords Studios PLC (LON:KWS) has said that following a leave of absence for health reasons in March, its chief executive Andrew Day has decided to bring forward a longer-term retirement plan and will be leaving his role as CEO and his position as a director with immediate effect.

Westminster Group PLC (LON:WSG) said it has been awarded a long-term contract to provide security services to five airports in the Democratic Republic of the Congo.

Panther Metals PLC (LON:PALM) announced the completion of data processing from airborne geophysical programmes on its wholly owned projects in Western Australia and the Northern Territory.

BATM Advanced Communications Limited (LON:BVC; TASE:BVC) has landed a US$4.1mln cybersecurity contract from a unnamed “long-standing government defence department customer”.

Frontier IP Group PLC (LON:FIPP) said its portfolio company, Pulsiv, has appointed Adam Westcott as its chief financial officer.

Eckoh PLC (LON:ECK) believes lasting changes to the working environment, particularly an increase in work-for-home patterns, will drive opportunities and demand for its secure payments and customer contactproducts.

Tavistock Investments PLC (LON:TAVI) returned to profit in its latest financial year as higher gross margins combined with lower overheads.

Condor Gold PLC (LON:CNR)(TSE:COG) has commenced a 1,700 metre infill geotechnical drilling programme within the permitted La India open pit in Nicaragua. Two diamond drill rigs have been deployed. The drilling is likely to add significant new resources to the planned open pit. 

Eurasia Mining PLC (LON:EUA) is proceeding with its plans to create a series of joint venture companies with partner Rosgeo. On 26 March 2021, Eurasia signed a binding agreement to create a joint venture with Rosgeo in which Eurasia will own a 75% equity stake in nine platinum group metal and battery metals assets, four of which are post the Russian feasibility study stage, and which have state approved reserves. 

Kavango Resources PLC (LON:KAV) has identified an electro-magnetic anomaly in Target Area C in the Hukuntsi section of the  Kalahari Suture Zone project. Designated Target C1, the conductive anomaly is located 11km from Target A2, which was first announced in April last year.

SigmaRoc PLC (LON:SRC), a buy-and-build construction materials group, signed a joint venture agreement with a major Calais-based high-grade limestone and construction materials company. 

Norman Broadbent PLC (LON:NBB) has appointed recruitment veteran Peter Searle as executive chairman. He will take up the role immediately after the recruitment and business group’s Annual General Meeting on June 25. 

Pelatro PLC (LON:PTRO) is aiming to raise at least £2.15mln of new capital through a share placing plus a share offer to retail investors on the PrimaryBid platform. Some 5.37mln new shares are being sold in a placing, priced at 40p per share. Shares sold via PrimaryBid will be priced on the same terms.

Teleradiology specialist Medica Group PLC (LON:MGP) has appointed a veteran of the technology sector as its new senior independent director and chair of the audit committee. Barbara Moorhouse will replace Steve Whittern at the company’s annual meeting on Wednesday (June 16).

IQGeo Group Plc (LON:IQG), a developer of geospatial productivity and collaboration software for the telecoms and utility industries, is pleased to announce that it has been selected by the US Western Area Power Administration (WAPA) to support their electrical transmission line inspection process.
 

 

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