CML MICROSYSTEMS PLC

Earnings Release • Nov 18, 2025

National Storage Mechanism | Additional information

RNS Number : 8863H

CML Microsystems PLC

18 November 2025

18 November 2025

CML Microsystems Plc

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

Half Year Results

Steady progress and strengthening order intake underpin confidence in a return to growth

CML Microsystems Plc, which develops mixed-signal, RF and microwave semiconductors for global communications markets, today announces its unaudited results for the six months ended 30 September 2025.

Financial Highlights

·      Revenue decreased by 27% to £9.18m (H1 FY25: £12.53m) reflecting cyclical low point in end market destocking

·      Profit from operations, after exceptional items of £2.43m (H1 FY25: £0.58m), with a profit before tax of £2.52m (H1 FY25: £0.82m)

·      Basic earnings per share, after exceptional items of 11.57p (H1 FY25: 4.34p)

·      Net cash of £10.68m (31-Mar-2025: £9.92m)

·      The Board is declaring an interim dividend of 5p per ordinary share (H1 FY25: 5.0p)

Operational Highlights

·      Improved order intake on both a sequential and comparable period basis supports the view that the Group is entering another growth phase

·      MwT's relocation in Silicon Valley and ISO 9001 re-certification are complete, with ERP integration and operational investments improving efficiency and reliability

·      R&D restructuring has balanced internal developments with third-party design work, supporting multiple customer-funded programmes

·      Supply-chain and raw-material issues affecting key products have been resolved, with availability resuming later in the financial year

·      Sales and marketing efforts are strengthening the new business pipeline

Chris Gurry, Managing Director of CML Microsystems Plc, commented on the results:

"The first six months have delivered operational and financial results in line with our expectations, and the improved order intake adds credence to our belief that the Group is entering another growth phase. With the multi-year business transformation complete, our focus is now on sustainable progress as we transition to a more diversified revenue base. The Board is confident that we are on the road to sustained and profitable growth, with the second half period expected to deliver material sequential revenue growth and a return to pre-exceptional operating profitability." 

CML Microsystems Plc Chris Gurry, Group Managing Director Nigel Clark, Non-Executive Chairman	Tel: +44(0)1621 875 500
Shore Capital Toby Gibbs James Thomas Lucy Bowden Fiona Conroy (Corporate Broking)	Tel: +44(0)20 7408 4090
Alma Strategic Communications Josh Royston Andy Bryant Robyn Fisher	Tel: +44 (0)20 3405 0212

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.

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.

Chief Executive's review

Overview

The first six months of the financial year have delivered both operational and financial results in line with management's expectations. An improved order intake, on both a sequential and comparable period basis, adds credence to our belief that the Group is entering another growth phase. Following a multi-year business transformation the emphasis is now on sustainable progress as we transition to a more diversified revenue base that will drive long-term value creation.

Operations

The prior year delays with relocating MwT to new premises in Silicon Valley are behind us. The local operations have been integrated into the Group's global ERP system which will deliver time and cost efficiencies going forward and, following a successful audit in the summer, re-certification to the ISO 9001 standard was achieved. Investments are now being made to improve production testing capabilities, leading to higher throughput and an enhanced level of reliability.

Strong investment in new product R&D has continued and remains crucial for our future growth objectives. Our extensive engineering resources were restructured at the beginning of the calendar year with one aim being to deliver a more appropriate balance between internal new product developments and the separate, but strategically important, provision of third-party design services. The teams are actively engaged in numerous customer-funded and proprietary product programmes, each addressing technology developments and growth areas within our target vertical markets.

Issues previously reported on proactive R&D activities to ensure security of supply affecting a selection of the Group's core products, along with unplanned engineering effort to restore shipment availability of specific SRF products impacted by China-related raw material restrictions have been successfully navigated. It is expected availability of the affected products will commence in the final months of the financial year.

The sales and marketing teams have made good progress raising awareness of CML as a trusted partner in those target sectors where the CML brand is less recognised. There has been an increase in the number of meaningful opportunities being uncovered which is elevating the new business pipeline and should propel the Company forward over time.

Markets & products

The Group is gaining momentum through its strategy to grow and diversify future revenue streams.

In July 2025, we announced the signing of a twelve year design and supply contract with a leading manufacturer of industrial global navigation satellite system (GNSS) equipment. The contract is valued at over $30m and highlights the value that customers place on our inherent capabilities, not only at the semiconductor development level, but also at the RF systems level within high-performance wireless communications sectors.

The initial two-to-three-year design period will pave the way for substantial product sales, where CML's ability to meet stringent manufacturing requirements and provide long-term supply chain resilience are additional key attributes. Work has formally commenced on the project with early-stage meetings and milestones having been completed.

The second half of the year will see the release of our integrated single chip solution for Digital Radio Mondiale (DRM), to accompany the already released DRM1000 module. By way of update, the market is on a promising trajectory with substantial adoption in India and China, with the latter having now officially adopted DRM as a national standard for digital broadcasting in both its Medium Wave (MW) bands, on a provincial basis, and Short Wave (SW) on a national and international basis. This move is part of a broader effort to modernise the country's radio broadcasting infrastructure. With its capacity for high-quality broadcasting and emergency messaging, coupled with relatively affordable infrastructure costs, recently available portable end products powered by CML technology should help DRM establish itself as a key player in the global digital radio landscape over time. There are challenges to overcome; regulatory compliance differs by region, broadcasters need to accelerate adoption and consumer awareness is low, however as an early market entrant working with key players in the space, we are positioned well to benefit from the anticipated growth over the medium term.

Several design-wins and first production orders were recorded across our current focus market sectors; including professional communications, industrial IoT, network infrastructure and defence. A refining of the target applications within our chosen market verticals is underway after analysis following 18 months of customer and markets interaction with an enlarged product portfolio. That process will be finalised and implemented during the remainder of the financial year. As a result we will enter FY27 optimised for future success.

Outlook

The last few years have tested our resilience, but we have embraced this period as an opportunity for strategic transformation. Through focused efforts in enhancing our business model and adapting to market dynamics, we are optimistic about leaving the toughest challenges behind. We are beginning to see the fruits of our labour and are confident that we are on the road to sustained and profitable growth.

The Board currently expects the second half of the year to deliver material sequential revenue growth and a return to pre-exceptional operating profitability for that period.

Financial summary

Revenues for the first half of the financial year were £9.18m (H1 FY25: £12.53m), a 27% decline against the prior year first half. The decline was across the board regionally and stems from the tail-end of an extensive customer over inventory situation and the inability to supply a selection of SµRF products due to the need to switch raw material supplier. As previously mentioned, the raw material issue was successfully navigated and shipments of the affected products will recommence towards the end of the financial year. On a sequential basis, the decline was 11%, aligning with the expectation that this year's overall performance will be heavily weighted to the second half period.

The overall product mix along with a higher proportion of NRE-related R&D activities being included within the cost of sales led to slightly lower margins of 67.1% (H1 FY25: 69.8%), delivering a gross profit of £6.16m (H1 FY25 £8.74m).

The prior financial year included several costs associated with the running of two operating facilities in California due to various delays in relocating to new premises. Having successfully moved to a new single facility in March 2025, we are now benefiting from lower running costs. When combined with an ongoing focus on operational efficiencies this has led to a very meaningful reduction in distribution and administration costs to £7.13m (H1 FY25: £7.98m).

In July 2025 an agreement was signed to dispose of surplus land at the Group's headquarters for a total of £7m, demonstrating further progress in realising value from non-core property assets. The first cash amount of £4m has been received, leading to an exceptional gain on sale being recognised in H1 of £3.41m. The remaining £3m cash payment falls due under unconditional contract terms in March 2026.

Excluding the exceptional gain on sale of land, the Group delivered a loss from operations of £0.98m (H1 FY25: profit of £0.58m). After factoring in net finance and other income, the pre-exceptional loss before tax was £0.89m (H1 FY25: profit of £0.82m).

On a reported basis, profit from operations was £2.43m, with a profit before tax of £2.52m being recorded.

The Board is declaring an interim dividend of 5p per ordinary share (H1 FY25: 5.0p), payable on 12 December 2025 to shareholders on the register on 28 November 2025.

In recent years there was a need to keep raw material inventory levels relatively elevated as we worked through several sourcing and over inventory issues that arose following the post-pandemic landscape, including geopolitical uncertainties. Having successfully navigated through to this point and barring any new issues emerging, the expectation is for inventory levels to reduce to a more normalised level over the next two years. At 30 September 2025 inventories were valued at £5.26m (31 March 2025: £5.66m).

The balance sheet remains strong with disciplined cash management contributing to cash/cash equivalents totalling £10.68m at 30 September 2025 (31 March 2025: £9.92m). Cash outflows included investment in research and development (£2.96m), a final dividend payment (£0.96m) and the purchase of property, plant and equipment (£0.46m). The research and development figure includes an amount of £0.72m that was expensed, with the balance being capitalised.

Chris Gurry

Group Managing Director

18 November 2025

Condensed consolidated income statement

for the six months ended 30 September 2025

	Unaudited 6 months ended						Unaudited 6 months ended							Audited year ended
	Before exceptional items		Exceptional items		30/09/25 Total			Before exceptional items		Exceptional items		30/09/24 Total		Before exceptional Items	Exceptional items	31/03/25 Total
	£'000		£'000		£'000			£'000		£'000		£'000		£'000	£'000	£'000
Continuing operations
Revenue (note 3)	9,178		-		9,178			12,530		-		12,530		22,899	-	22,899
Cost of sales	(3,020)		-		(3,020)			(3,786)		-		(3,786)		(7,010)	-	(7,010)
Gross profit	6,158		-		6,158			8,744		-		8,744		15,889	-	15,889
Distribution and administration costs	(7,134)		-		(7,134)			(7,983)		-		(7,983)		(15,138)	-	(15,138)
Share-based payments	(145)		-		(145)			(159)		-		(159)		(284)	-	(284)
	(1,121)		-		(1,121)			602		-		602		467	-	467
Other operating income	145		-		145			(27)		-		(27)		66	-	66
Other gains/(losses)	-		3,406		3,406			-		-		-		-	(1,647)	(1,647)
Profit/(loss) from operations	(976)		3,406		2,430			575		-		575		533	(1,647)	(1,114)
Other income	14		-		14			14		-		14		31	-	31
Finance income	122		-		122			274		-		274		423	-	423
Finance expense	(50)		-		(50)			(48)		-		(48)		(106)	-	(106)
Profit/(loss) before taxation	(890)		3,406		2,516			815		-		815		881	(1,647)	(766)
Income tax (charge)/credit	(82)		(591)		(673)			(118)		-		(118)		715	33	748
Profit/(loss) after taxation for period attributable to equity owners of the parent	(972)		2,815		1,843			697		-		697		1,596	(1,614)	(18)

All financial information presented relates to continuing activities.

Earnings per share pre-exceptional items from total operations attributable to the ordinary equity holders of the Company:

Basic (loss)/earnings per share			(6.10)p			4.34p			9.95p
Diluted (loss)/earnings per share			(6.10)p			4.32p			9.93p

Earnings per share from total operations attributable to the ordinary equity holders of the Company:

Basic earnings/(loss) per share			11.57p			4.34p			(0.11)p
Diluted earnings/(loss) per share			11.54p			4.32p			(0.11)p

The following measure is considered an alternative performance measure, not a generally accepted accounting principle. This ratio is useful to ensure that the level of borrowings in the business can be supported by the cash flow in the business. For definition and reconciliation see note 9.

Adjusted EBITDA			1,203			2,876			5,218

Condensed consolidated statement of total comprehensive income

for the six months ended 30 September 2025

	Unaudited 6 months ended	Unaudited 6 months ended	Audited year ended
	30/09/25	30/09/24	31/03/25
	£'000	£'000	£'000
Profit/(loss) for the period	1,843	697	(18)
Other comprehensive income/(expense):
Items that will not be reclassified subsequently to profit or loss:
Re-measurement of defined benefit obligation	-	-	803
Deferred tax on actuarial gain	-	-	(201)
Items reclassified subsequently to profit or loss upon derecognition:
Foreign exchange differences	(722)	(1,030)	(501)
Other comprehensive (loss)/income for the period net of taxation attributable to the equity holders of the parent	(722)	(1,030)	101
Total comprehensive income/(loss) for the period attributable to the equity holders of the parent	1,121	(333)	83

Condensed consolidated statement of financial position

as at 30 September 2025

	Unaudited	Unaudited	Audited
	30/09/25	30/09/24	31/03/25
	£'000	£'000	£'000
Assets
Non-current assets
Goodwill	12,200	13,853	12,625
Other intangible assets	2,408	2,942	2,702
Development costs	17,911	16,022	16,944
Property, plant and equipment	5,816	5,643	5,685
Right-of-use assets	1,824	2,269	2,115
Deferred tax assets	1,039	733	1,569
	41,198	41,462	41,640
Current assets
Property, plant and equipment - held for sale	529	1,124	1,124
Investment properties - held for sale	1,975	1,975	1,975
Inventories	5,263	4,768	5,663
Trade receivables and prepayments	4,429	3,354	2,867
Current tax assets	103	303	-
Cash and cash equivalents (note 8)	8,780	9,145	7,782
Short-term cash deposits (note 8)	1,901	5,834	2,136
	22,980	26,503	21,547
Total assets	64,178	67,965	63,187
Liabilities
Current liabilities
Trade and other payables	6,286	6,268	4,833
Provisions	192	196	196
Lease liabilities	370	385	395
Current tax liabilities	59	127	47
	6,907	6,976	5,471
Non-current liabilities
Deferred tax liabilities	4,771	5,279	5,324
Trade and other payables	447	2,509	447
Lease liabilities	1,623	2,003	1,863
Retirement benefit obligation	1,076	1,696	1,076
	7,917	11,487	8,710
Total liabilities	14,824	18,463	14,181
Net assets	49,354	49,502	49,006
Capital and reserves attributable to equity owners of the parent
Share capital	825	825	825
Share premium	2,230	2,264	2,258
Capital redemption reserve	8,372	8,372	8,372
Other reserve	2,929	3,073	2,929
Treasury shares - own share reserve	(2,101)	(2,143)	(2,175)
Share-based payments reserve	1,002	814	917
Foreign exchange reserve	(1,334)	(1,141)	(612)
Retained earnings	37,431	37,438	36,492
Total shareholders' equity	49,354	49,502	49,006

Condensed consolidated cash flow statement

for the six months ended 30 September 2025

	Unaudited	Unaudited	Audited
	6 months ended	6 months ended	year ended
	30/09/25	30/09/24	31/03/25
	£'000	£'000	£'000
Operating activities
Profit/(loss) for the period before taxation	2,516	815	(766)
Adjustments for:
Foreign exchange movement	74	(68)	(48)
Depreciation - on property, plant and equipment	322	269	563
Depreciation - on right-of-use assets	217	444	899
Impairment of goodwill	-	-	1,531
Amortisation of development costs	1,263	1,159	2,402
Impairment of other tangible assets	-	-	116
Amortisation of other intangibles	218	256	506
Profit on disposal of fixed assets	(3,406)	-	-
Movement in non-cash items (retirement benefit obligation)	90	90	183
Share-based payments	145	159	284
Finance income	(122)	(274)	(423)
Finance expense	50	48	106
Movement in working capital	(25)	(1,016)	(2,201)
Cash flows from operating activities	1,342	1,882	3,152
Income tax paid	(652)	(119)	(60)
Net cash inflow from operating activities	690	1,763	3,092
Investing activities
Purchase of property, plant and equipment	(463)	(264)	(595)
Investment in development costs	(2,244)	(2,057)	(4,217)
Repayment/(investment) in fixed term deposits (net)	235	1,117	4,815
Proceeds from sale of fixed assets	4,000	-	-
Acquisition of subsidiary (net of cash acquired)	-	(956)	(3,786)
Investment in intangibles	(20)	-	(32)
Finance income	122	274	423
Net cash inflow/(outflow) investing activities	1,630	(1,886)	(3,392)
Financing activities
Lease liability repayments	(226)	(403)	(884)
Issue of ordinary shares (net of expenses)	46	63	475
Purchase of own shares for treasury	-	(446)	(897)
Dividends paid to shareholders	(956)	(961)	(1,765)
Finance expense	(9)	(10)	(20)
Net cash outflow from financing activities	(1,145)	(1,757)	(3,091)
Increase/(decrease) in cash, cash equivalents and short-term cash deposits	1,175	(1,880)	(3,391)
Movement in cash and cash equivalents:
At start of period/year	7,782	11,262	11,262
Increase/(decrease) in cash, cash equivalents and short-term cash deposits	1,175	(1,880)	(3,391)
Effects of exchange rate changes	(177)	(237)	(89)
At end of period	8,780	9,145	7,782

Cash flows presented exclude sales taxes. Further cash-related disclosure details are provided in note 8.

Changes in liabilities arising from financing activities relate to lease liabilities only.

Condensed consolidated statement of changes in equity

for the six months ended 30 September 2025

			Capital			Share-	Foreign
	Share	Share	redemption	Other	Treasury	based	exchange	Retained
	capital	premium	reserve	reserve	shares	payments	reserve	earnings	Total
Unaudited	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 31 March 2024	825	2,327	8,372	3,073	(1,822)	666	(111)	37,746	51,076
Profit for period								697	697
Other comprehensive income net of taxes
Foreign exchange differences							(1,030)		(1,030)
Total comprehensive income for the period	-	-	-	-	-	-	(1,030)	697	(333)
	825	2,327	8,372	3,073	(1,822)	666	(1,141)	38,443	50,743
Transactions with owners in their capacity as owners
Issue of treasury shares		(63)			124				61
Purchase of own shares - treasury					(445)				(445)
Dividends paid								(961)	(961)
Total of transactions with owners in their capacity as owners	-	(63)	-	-	(321)	-	-	(961)	(1,345)
Share-based payments						159			159
Deferred tax on share-based payments								(55)	(55)
Cancellation/transfer of share-based payments						(11)		11	-
At 30 September 2024	825	2,264	8,372	3,073	(2,143)	814	(1,141)	37,438	49,502
Loss for period								(715)	(715)
Other comprehensive income net of taxes
Foreign exchange differences							529		529
Re-measurement of defined benefit obligation								803	803
Deferred tax on actuarial gain								(201)	(201)
Total comprehensive income for the period	-	-	-	-	-	-	529	(113)	416
	825	2,264	8,372	3,073	(2,143)	814	(612)	37,325	49,918
Transactions with owners in their capacity as owners
Issue of treasury shares - acquisition				(144)					(144)
Issue of treasury shares		(6)			420				414
Purchase of own shares - treasury					(452)				(452)
Dividends paid								(804)	(804)
Total of transactions with owners in their capacity as owners	-	(6)	-	(144)	(32)	-	-	(804)	(986)
Share-based payment charge						125			125
Deferred tax on share-based payments								(51)	(51)
Cancellation/transfer of share-based payments						(22)		22	-
At 31 March 2025	825	2,258	8,372	2,929	(2,175)	917	(612)	36,492	49,006

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY continued

for the six months ended 30 September 2025

			Capital			Share-	Foreign
	Share	Share	redemption	Other	Treasury	based	exchange	Retained
	capital	premium	reserve	reserve	shares	payments	reserve	earnings	Total
Unaudited	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000	£'000
At 31 March 2025	825	2,258	8,372	2,929	(2,175)	917	(612)	36,492	49,006
Profit for period								1,843	1,843
Other comprehensive income net of taxes
Foreign exchange differences							(722)		(722)
Total comprehensive income for the period	-	-	-	-	-	-	(722)	1,843	1,121
	825	2,258	8,372	2,929	(2,175)	917	(1,334)	38,335	50,127
Transactions with owners in their capacity as owners
Issue of treasury shares		(28)			74				46
Dividends paid								(956)	(956)
Total of transactions with owners in their capacity as owners	-	(28)	-	-	74	-	-	(956)	(910)
Share-based payments						145			145
Deferred tax on share-based payments								(8)	(8)
Cancellation/transfer of share-based payments						(60)		60	-
At 30 September 2025	825	2,230	8,372	2,929	(2,101)	1,002	(1,334)	37,431	49,354

Notes to the condensed consolidated financial statements

for the six months ended 30 September 2025

1 Basis of preparation and approval of interim statements

The financial information for the six months ended 30 September 2025 and for the six months ended 30 September 2024 is unaudited.

The interim financial statements for the six months to 30 September 2025 do not include all of the information required for full annual financial statements and should be read in conjunction with the consolidated financial statements for the year ended 31 March 2025.

The financial information has been prepared on the basis of UK adopted international accounting standards (IFRSs) that the Directors expect to be applicable as at 31 March 2026.

The accounting policies adopted in the preparation of the interim financial statements are consistent with those set out in the Group's Annual Report and Financial Statements 2025, which were prepared in accordance with IFRSs.

These interim financial statements do not comprise statutory accounts within the meaning of Section 435 of the Companies Act 2006. Statutory accounts for the year ended 31 March 2025 were approved by the Board on 7 July 2025 and delivered to the Registrar of Companies. The report of the auditor on those accounts was unqualified, did not contain an emphasis of matter paragraph and did not contain any statement under Section 498(2) or Section 498(3) of the Companies Act 2006.

AIM-quoted companies are not required to comply with IAS 34 'Interim Financial Reporting' and accordingly the Company has not applied this standard in preparing this report.

The interim financial statements were approved by the Board of Directors on 18 November 2025.

2 Segmental analysis

Reported segments and their results, in accordance with IFRS 8, are based on internal management reporting information that is regularly reviewed by the Group Managing Director, who is the Chief Operating Decision Maker. The measurement policies the Group uses for segmental reporting under IFRS 8 are the same as those used in its financial statements.

The Group is focused for management purposes on one primary reporting segment, being the semiconductor segment, with similar economic characteristics, risks and returns, and the Directors therefore consider there to be one single segment, being semiconductor components for the communications industry.

Geographical segments (by origin)

	Unaudited	Unaudited	Audited
	6 months ended	6 months ended	year ended
	30/09/25	30/09/24	31/03/25
	£'000	£'000	£'000
Revenue to third parties
UK	1,642	618	4,623
Americas	2,308	5,983	7,500
Far East	5,228	5,929	10,776
Total	9,178	12,530	22,899

	Unaudited	Unaudited	Audited
	6 months ended	6 months ended	year ended
	30/09/25	30/09/24	31/03/25
	£'000	£'000	£'000
Total assets
UK	48,813	51,597	46,740
Americas	4,620	5,747	6,036
Far East	10,745	10,621	10,411
Total	64,178	67,965	63,187

3 Revenue

The geographical classification of business turnover (by destination) is as follows:

	Unaudited	Unaudited	Audited
	6 months ended	6 months ended	year ended
	30/09/25	30/09/24	31/03/25
	£'000	£'000	£'000
Europe	1,772	2,713	4,485
Far East	5,227	6,003	10,856
Americas	1,829	3,486	6,827
Other	350	328	731
	9,178	12,530	22,899

The operational classification of business turnover (by market) is as follows:      

	Unaudited	Unaudited	Audited
	6 months ended	6 months ended	year ended
	30/09/25	30/09/24	31/03/25
	£'000	£'000	£'000
Semiconductor	8,770	12,325	22,537
Design and development	408	205	362
	9,178	12,530	22,899

Semiconductor products, goods and services are transferred at a point in time whereas design and development revenue is transferred over the period of the contract on a percentage basis of contract completion, as detailed in the Group's revenue recognition policy within its published Annual Report.

The Group does not have any contract assets or liabilities at 30 September 2025 (£Nil at 31 March 2025) from semiconductors as it does not fulfil any of its performance obligations in advance of invoicing to its customer. The Group has contract assets of £1,549,000 as at 30 September 2025 (£25,000 at 31 March 2025) from design and development and contract liabilities of £2,000 as at 30 September 2025 (£Nil at 31 March 2025) from design and development. The Group has contractual balances in the form of trade receivables. See note 20 for disclosure of this in the Annual Report and Accounts for the year ended 31 March 2025.

The Group expects all contractual costs capitalised or any outstanding performance obligations will be completed within the next twelve months.

4 Dividends paid and interim dividend

The Board is declaring an interim dividend of 5p per ordinary share for the half year ended 30 September 2025, payable on 12 December 2025 to shareholders on the Register on 28 November 2025.

A final dividend of 6p per ordinary share was paid on 15 August 2025 and an interim dividend of 5p per ordinary share was paid on 13 December 2024, totalling 11p per ordinary share paid for the year ended 31 March 2025 (2024: 11p per ordinary share paid for the year ended 31 March 2024).

5 Other gains/(losses)

	Unaudited	Unaudited	Audited
	6 months ended	6 months ended	year ended
	30/09/25	30/09/24	31/03/25
	£'000	£'000	£'000
Impairment of goodwill	-	-	(1,531)
Impairment of intangible assets	-	-	(116)
Profit on sale of fixed assets	3,406	-	-
	3,406	-	(1,647)

During the year ended 31 March 2025, the Group restructured its engineering resources which led to the goodwill and intangible assets relating to the acquisition of PRFI Ltd in March 2020 to be impaired to £Nil.

During the period ending 30 September 2025, the Group sold excess land at the Group's headquarters in Essex.

6 Income tax expense/(credit)

	Unaudited	Unaudited	Audited
	6 months ended	6 months ended	year ended
	30/09/25	30/09/24	31/03/25
	£'000	£'000	£'000
Current tax
UK corporation tax on results of the period/year	628	(121)	-
Adjustment in respect of previous years	(27)	2	1
	601	(119)	1
Foreign tax on results of the period/year	97	149	228
Total current tax	698	30	229
Deferred tax
Deferred tax - origination and reversal of temporary differences
2	70	(910)
Adjustments to deferred tax charge in respect of previous years
(27)	18	(67)
Total deferred tax	(25)	88	(977)
Tax expense/(credit) on profit on ordinary activities	673	118	(748)

The Directors consider that tax will be payable at varying rates according to the country of incorporation of its subsidiary undertakings and have provided on that basis.

The tax charge for the six months ended 30 September 2025 has been calculated by applying the effective tax rate which is expected to apply to the Group for the year ending 31 March 2026, using rates substantially enacted by 30 September 2025.

7 Earnings per share

	Unaudited	Unaudited	Audited
	6 months ended	6 months ended	year ended
	30/09/25	30/09/24	31/03/25
Earnings per share pre-exceptional items attributable to the ordinary equity holders of the Company:
Basic (loss)/earnings per share	(6.10)p	4.34p	9.95p
Diluted (loss)/earnings per share	(6.10)p	4.32p	9.93p
Earnings per share from total operations attributable to the ordinary equity holders of the Company:
Basic earnings/(loss) per share	11.57p	4.34p	(0.11)p
Diluted earnings/(loss) per share	11.54p	4.32p	(0.11)p

The calculation of basic and diluted earnings per share is based on the profit attributable to ordinary shareholders divided by the weighted average number of shares in issue during the year, as explained below:

	Ordinary 5p shares
	Weighted
	average	Diluted
	number	number
Six months ended 30 September 2025	15,931,609	15,961,715
Six months ended 30 September 2024	16,047,329	16,141,190
Year ended 31 March 2025	16,030,969	16,065,979

8 Cash, cash equivalents and short-term deposits

	Unaudited	Unaudited	Audited
	30/09/25	30/09/24	31/03/25
	£'000	£'000	£'000
Cash on deposit	3,531	2,176	2,762
Cash at bank	5,249	6,969	5,020
	8,780	9,145	7,782
Short-term cash deposits	1,901	5,834	2,136
	10,681	14,979	9,918

9 Adjusted EBITDA

Adjusted earnings before interest, tax, depreciation and amortisation ('Adjusted EBITDA') is defined as profit before taxation and before all interest, tax, depreciation and amortisation charges, exceptional items and before share-based payments. The following is a reconciliation of the Adjusted EBITDA for the three periods presented:

	Unaudited	Unaudited	Audited
	6 months ended	6 months ended	year ended
	30/09/25	30/09/24	31/03/25
	£'000	£'000	£'000
Profit/(loss) before taxation (earnings)	2,516	815	(766)
Adjustments for:
Finance income	(122)	(274)	(423)
Finance expense	50	48	106
Depreciation	322	269	563
Depreciation - right-of-use assets	217	444	899
Amortisation of development costs	1,263	1,159	2,402
Amortisation of other intangibles	218	256	506
Share-based payments	145	159	284
Profit on disposal of fixed assets	(3,406)	-	-
Impairment of goodwill	-	-	1,531
Impairment of intangible assets	-	-	116
Adjusted EBITDA	1,203	2,876	5,218

10 General

Other than already stated within the Chief Executive's Review, there have been no important events during the first six months of the financial year that have impacted this Half Yearly Report.

There have been no related party transactions or changes in related party transactions described in the latest Annual Report that could have a material effect on the financial position or performance of the Group in the first six months of the financial year.

The auditor's report on those accounts did not contain a statement under Section 498(2) or (3) of the Companies Act 2006. This Half Yearly Report has not been audited by the Group auditor.

A copy of this Half Yearly Report can be viewed on the Company website: www.cmlmicroplc.com.

11 Approvals

The Directors approved this Half Yearly Report on 18 November 2025.

Glossary

5G                           Fifth Generation Cellular Network Technology

AIM                         Alternative Investment Market

AMR                       Automatic Meter Reading

DRM                       Digital Radio Mondiale

EBITDA                 Earnings before interest, tax, depreciation and amortisation

FY                           Full Year

GaAs                      Gallium Arsenide

GaN                        Gallium Nitride

H1                           First Half (Financial Year)

IAS                          International Accounting Standards

IC                            Integrated Circuit

IFRS                       International Financial Reporting Standards

IIoT                         Industrial Internet of Things

IoT                          Internet of Things

LMR                       Land Mobile Radio

M2M                       Machine to Machine

MMIC                     Monolithic Microwave Integrated Circuit

PMR                       Private Mobile Radio

R&D                       Research and Development

RF                           Radio Frequency

RFID                       Radio Frequency Identification

CML Microsystems Plc

Oval Park, Langford

Maldon, Essex

CM9 6WG

T: +44 (0)1621 875500

[email protected]

Visit us online at

www.cmlmicroplc.com

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