CML Microsystems Plc (LSE:CML) enters the winter reporting season with a clear message from its board: the worst of the downturn in its semiconductor Business appears to be over. Full-year results to 31 March 2026, announced on 17 June, showed lower Revenue and an operating loss, yet the directors said they expected a return to revenue growth in the 2027 financial year. A notice of results issued on 19 October 2026 signals that the next set of figures, for the first half of that year, is close.

What the company does

CML designs and supplies semiconductors for communications, and reports a single segment. Its chips serve professional and industrial communications, network infrastructure, industrial Internet of Things equipment and aerospace and defence customers. LSE:CML now organises its commercial effort around four verticals: Professional and Industrial Communications, Network Infrastructure, Industrial IoT, and Aerospace and Defence. In the last financial year, Professional and Industrial Communications made up 54% of revenue and Industrial IoT 24%. By destination, the Far East was the largest market with 10.76 million pounds of sales, ahead of the Americas at 5.05 million and Europe at 3.95 million.

Latest results

Revenue for the year to 31 March 2026 was 20.45 million pounds, down from 22.90 million, although the second half improved markedly on both the first half and the previous year's second half. Gross Profit fell to 12.89 million pounds, a Margin of 63% against 69%, as lower-margin engineering income rose to 1.89 million pounds. The loss from operations before one-off items was 1.93 million pounds, compared with a profit of 0.53 million a year earlier, and adjusted EBITDA was 2.34 million pounds against 5.22 million.

One-off items were a 5.88 million pound profit on the sale of excess land at Oval Park, offset by a 4.19 million pound Impairment of development costs. The pre-tax loss narrowed to 0.07 million pounds. Net Assets rose to 51.45 million pounds.

Cash and dividend

The Balance Sheet remains Debt free. Cash and short-term deposits stood at 12.80 million pounds, up from 9.92 million, helped by 7.0 million pounds of land sale proceeds and operating cash inflow of 4.59 million pounds. The board proposed an unchanged final Dividend of 6.0 pence, making 11.0 pence for the year with the 5.0 pence interim, with payment scheduled for 21 August 2026. R&D spending was held at 5.50 million pounds.

Design wins and outlook

A 12-year design and Supply agreement with a global industrial GNSS equipment maker, signed in July 2025, is worth more than 30 million dollars, and its first design phase of two to three years is under way. The directors also pointed to the end of a customer inventory overhang and a full year of sales from products delayed by a supplier re-qualification.

Sector context and risks

CML (LSE:CML) is a small AIM semiconductor supplier, and its fortunes track industrial Demand and customer ordering patterns in a sector that went through heavy inventory correction. The board listed trade tariffs, exposure to the US dollar, reliance on a small number of key customers, sole-sourced silicon supply and IT security among its principal risks, and noted cautious forecasting by customers.

What to watch next

The interim announcement is the near-term event, with attention on whether revenue growth has resumed, how margins recover as engineering income normalises, and whether the dividend is maintained. Director share dealings reported in late September and early October 2026 may also draw interest.