CML Microsystems – very positive AGM Statement, Order intake drives faster return to profit, shares 275p are a bargain for patient investors

Mark Watson-Mitchell – 11.08.2026

Ahead of this morning’s 9.30am AGM, CML Microsystems (LON:CML) has issued a very positive Trading Update.

It has stated that the business entered FY27 with strong momentum, continuing a positive trend from the prior year's final quarter with both revenue growth and an improving order intake.

Trading in the opening months of the current financial year has been robust, with revenue in line with and order intake ahead of expectations, driven by firmer demand across all key market verticals.

The Board is confident in its growth strategy, and a return to operational profitability is now anticipated earlier in the current financial year than previously forecast.

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 £46m-capitalised group is cash-generative, has no debt and is dividend paying.

The group’s shares are currently trading at just 275p, having eased 7.50p yesterday in front of today’s Update.

Analyst Alasdair Young at Shore Capital Markets views the strength of the group’s order intake as particularly significant.

“Management reports that revenue in the opening months of FY27F has tracked in line with expectations, while order intake has exceeded expectations, supported by firmer demand across all four of the Group's key target verticals.

This is encouraging given FY27F is expected to mark a return to meaningful revenue growth (we forecast 17% growth).

As a result, the Board now expects a return to operational profitability earlier in the financial year than previously anticipated.

For context, we currently forecast FY27F adjusted EBITDA of £4.0m and an adjusted PBT loss of £0.1m.

At 275p, CML is valued at 6.9x EV/EBITDA and 1.5x EV/Sales for FY27F, with a dividend yield of 4.0%.

With multiple growth levers in place and a strong balance sheet, we believe the shares offer compelling upside as operational recovery becomes more evident.”

A cracking purchase for patient investors in growth companies.

(Profile 19.06.25 @ 235p set a Target Price of 295p*)

(Profile 06.08.26 @ 275p set a Target Price of 330p)

CML shares are a Buy for patient growth company investors