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Semiconductor company CML Microsystems cut its dividend after reporting that profit more than halved, paced by a larger-than-expected decline in sales in the Far East amid the ongoing Covid-19 pandemic. The company recommended a final dividend of 2.0p, equating to 4.0p for the year, down from 7.8p, which reflected 'prudence in light of Covid-19 environment,' the company said.
For the year ended 31 March 2020, pre-tax profit fell to £1.37m from £2.98m on-year and revenue slipped to £26.42m form £28.14m.
Geographically, the Far East region was the single largest contributor to the overall drop in sales, delivering a reduction of £2.17m, or 16%. and exceeding the overall Group revenue drop of £1.72m.
'The current financial year did commence with a healthier order book than the prior year, although it remains to be seen how this translates to actual market consumption as there may be an element attributable to COVID-19 related supply concerns amongst the customer base,' the company said.
At 8:01am: (LON:CML) CML Microsystems PLC share price was -4p at 277p