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.
peopleContenders for Time magazine's Person of the Year are a mixture of the good, the bad and the holy
tvSteven Moffat reveals the actor was dying to take on the role of the Time Lord and says he is excited to see what he will do with the character
sportBayern Munich 2 Manchester City 3: City come from two down to beat reigning European Champions
newsAs the world remembers Mandela the hero, the prison where he spent 27 years seems all the more brutal
arts + ents... and a chance to paint Booker Prize winning author Hilary Mantel
danceUnder Tamara Rojo's inspired direction, it seems possible that it could challenge the dominance of the Royal Ballet. We meet some established names and rising stars
travelDiscover Uruguay's jet-set beach resort, an Atlantic enclave with plenty of art and culture to explore on the side
The ten coldest places on Earth
Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
Krokodil in Mexico? Teenager hospitalised after 'injecting drug into her genitals'
Nelson Mandela memorial: Cheers, jeers and a masterclass from Barack Obama that stole the show
- 1 Mountain goats' miraculous escape from avalanche captured in dramatic video footage
- 2 It’s shameful that our universities have accepted gender segregation under pressure from the most oppressive religious fanatics
- 3 Sir Ian McKellen hits back at Damian Lewis' 'fruity actor' claims
- 4 Kenyan politician Mike Sonko left red-faced after photoshopping himself next to Nelson Mandela
- 5 Selfie at funeral: Cameron squeezes in on Obama snap at Mandela memorial
- < Previous
- Next >
iJobs Money & Business
£45000 - £70000 per annum + Bonus + Benefits: Harrington Starr: Technical Impl...
£65000 - £90000 per annum + Bonus + Benefits: Harrington Starr: Rogue Trading ...
£35000 - £45000 per annum + BONUS + BENEFITS: Harrington Starr: A leading, Cit...
£40000 - £50000 per annum + benefits + bonus: Harrington Starr: Data Analyst -...