Smaller Companies: Lights turn to green for CML
Sunday 30 November 1997
Pre-tax profit, however, rose 173 per cent to pounds 319,000. EPS was up 45 per cent, to 1.96p. Traffic activities actually made a pounds 400,000 loss, but that is normal for first-half results at the company, due to the spending patterns of local authorities. The main reason for the turnaround in fortunes at the pre-tax level was the removal of operating losses of pounds 79,000, before interest received of pounds 196,000.
One of the things to emerge most clearly from the figures is the difference that CML's cash pile of pounds 7.5m makes, providing an important cushion against fluctuations in its markets.
Some of that cash will go on expanding the group's semiconductor manufacturing facility. A 12-month project, it is estimated it will cost up to pounds 3m, but should boost manufacturing capacity by 20 to 25 per cent.
Over the last year, the company's shares have had a good run, outperforming the market by 15 per cent.
Forecasts by house broker Beeson Gregory see pre-tax profit rise to pounds 2.5m in 1998, from pounds 1.9m in 1997, and pounds 3m in 1999. That leaves the shares trading on 14.6 times earnings next year, and 12.2 times 1999's earnings.
That does not seem too undemanding, and the company has the benefit of good cash flow, and a cash pile to protect against turbulence.
The semi-conductor technology CML possesses is in a booming market - telecom applications and the like. Private mobile radio is also contributing strongly, and looks set for further good growth. On a medium-to-long-term view, the shares look a sensible investment. Gains are unlikely to be the spectacular ones sometimes associated with high-tech, but nor are they likely to be of the boom-to-bust variety. Finally, assuming the technology continues to improve, CML may well catch the eye of a larger competitor one day.
- 1 I've been called an abusive and dangerous parent, when all I did was listen to my transgender child
- 2 Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
- 3 Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
- 4 Company breaks open Apple Watch to discover what it says is 'planned obsolescence'
- 5 Ian Brady: Moors murderer announces his support for Ukip and the SNP
Migrant crisis: Greek soldier saved 20 people singlehandedly off Rhodes beach
Russian hack of President Obama's emails worse than previously admitted
Ian Brady: Moors murderer announces his support for Ukip and the SNP
UK weather: Britain braced for snow to replace sun as arctic air mass moves in
Nepal earthquake: US Pastor Tony Miano sparks outcry by suggesting Nepalis should convert and not rebuild their 'pagan shrines'
General Election 2015: Chuka Umunna on the benefits of immigration, humility – and his leader Ed Miliband
The sickening truth about food banks that the Tories don't want you to know
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£24000 - £26000 per annum + benefits : Ashdown Group: A highly successful, glo...
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...