Revaluation

CML Microsystems PLC 07 June 2006 CML Microsystems Plc ('CML') CML announces that its profit before revaluation of investment properties (which under IAS 40 have to go through the Income Statement) and tax for the year ended 31 March 2006 will be around £2.8 million on turnover of approximately £26.3 million. Whilst turnover is in line with market expectations, the better contribution to profit is due to a combination of improvement in gross margin and cost control in the last quarter of the year. The revaluation of investment properties will increase the profits by a further £0.7m taking the profit before tax to £3.5m. Whilst the improved results for the year ended 31 March 2006 is an encouraging outcome currently CML is seeing a slowdown in order intake from a significant customer and a revision of their short and medium term forecasts. Though confident about the long-term commitment to CML by this customer, if this slowdown persists as is currently forecast, then it is likely that the results for the year ending 31 March 2007 will be below current market expectations. CML will provide an update on this at the time of its Annual General Meeting in August. CML will announce its results for the year ended 31 March 2006 on Tuesday 13 June 2006. G W Gurry Chairman 7 June 2006 Contact for information N G Clark or C A Gurry This information is provided by RNS The company news service from the London Stock Exchange NRAR
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