CML Microsystems Plc (LON:CML) saw its profits slip as the ongoing US-China trade war and the coronavirus pandemic hit demand for its semiconductors.
In the year ended 31 March, the group reported a pre-tax profit of £1.37mln, down from £2.98mln in the prior year, while revenues fell to £26.4mln from £28.1mln.
The company also said it had decided to pay a final dividend of 2p per share, taking its total payout for the year to 4p from 7.8p, reflecting what it said was “prudence in light of [the coronavirus] environment”.
Despite the disruption and lower profits, the company said it believed it was “well placed to move positively forward in the medium to long term…underpinned by a strong balance sheet and no debt, coupled with a sound product portfolio that addresses markets that have a positive outlook”.
“The strategy in place, when eventually these current global uncertainties and negative influences subside, should mean, we are well placed to return a meaningful uplift in the group's performance”, it added.
"There is no hiding from the fact that the year under review has been difficult, and the current environment is delaying realisation of the benefits to come from the hard work taking place behind the scenes”, said CML managing director Chris Gurry.
The current financial year did commence with a healthier order book than the prior year, he said, although it remains to be seen how this translates to actual market consumption as there may be an element attributable to [coronavirus] related supply concerns amongst the customer base.
Nevertheless, following the operational adjustments made across the prior year, the business is tuned to react swiftly to a revival in demand”, he added.
In a note, analysts at house broker Shore Capital said while the results had fallen “modestly short of initial expectations”, this was due to factors outside of the company’s control and that “importantly, the order books is strong at this point, with end customers insulated from a consumer downturn to some extent”.
Shares in the group fell 1.4% to 277p in mid-morning trading on Tuesday.
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