CML Microsystems – shares now 345p up 55% in just two months, a new ‘Space Sector’ stock for punters?

Mark Watson-Mitchell – 28.05.2026  

They were not April Fools!

I am relating to investors who bought into the equity of CML Microsystems (LON:CML) on Wednesday, 1^st April this year.

It was on that date that the group announced its Trading Update for the year to end-March.

On that day its shares were just 223p, yesterday they rose 13.11% to close at 345p, some 40p better on the day.

The group is now capitalised at just £57.47m – could it rise still further within the next three weeks ahead of its Finals being announced on Tuesday 16^th June?

The Business

CML develops mixed-signal, RF and microwave semiconductors for global communications markets.

The group utilises a combination of outsourced manufacturing and in-house testing with trading operations in the UK, Asia and USA. CML targets sub-segments within Communication markets with strong growth profiles and high barriers to entry.

It has secured a diverse, blue-chip customer base, including some of the world's leading commercial and industrial product manufacturers.

Growth in its end-markets is being driven by factors such as the appetite for data to be transmitted faster and more securely, the upgrading of telecoms infrastructure around the world and the growing prevalence of private commercial wireless networks for voice and/or data communications linked to the industrial internet of things (IIoT).

The group is cash-generative, has no debt and is dividend-paying.

The Trading Update

The company stated that it expects full-year revenues to exceed £20m for the year end-March, with second-half revenue growing approximately 18% compared to the first half, driven by improved order intake momentum.

Despite a greater proportion of lower-margin non-recurring engineering income and continued investment in Silicon Valley operations, the company anticipates an improved operating loss in the second half compared to the first half's £0.98m loss.

A significant improvement is projected for the statutory profit before tax, estimated at £1.8m for FY26, up from a £0.7m loss in FY25, largely due to a revaluation gain and profit on disposal from the Oval Park land sale, which contributed to year-end net cash balances of approximately £11m.

Broker’s View

Analyst Alasdair Young, at Shore Capital Markets, highlighted that the group’s interim results called out an uptick in both orders and the number of design wins – the crucial lead indicators for future revenue performance.

“With multiple growth levers in motion and an exceptionally strong balance sheet, we believe the shares offer a compelling opportunity for capital appreciation as strategic execution continues to deliver results and long-term growth drivers begin to take hold.

We think this could ultimately prove to be a trough multiple on trough earnings.”

My View

Considering the massive investor move towards any shares of companies within the ‘Space Sector’ CML has been something of a laggard.

But not now!

It has quickly caught up with the ongoing ‘frenzy’ – let us hope that the forthcoming results statement helps to put some more flesh on its bones.

(Profile 19.06.25 @ 235p set a Target Price of 290p*)

(Profile 27.03.26 @ 230p set a Target Price of 275p*)