CML Microsystems PLC on Tuesday reported a sharp rise in profit as a result of a strong recovery in voice-centric markets, leading the company to boast a sunny outlook for the year ahead and beyond.

In the year ended March 31, the semiconductor developer posted a pretax profit of £1.7 million, up significantly from just £10,000 the previous year.

Revenue rose more modestly compared to the profit figure, but still saw a notable jump as it increased 29% to £17 million from £13.1 million a year prior. This, the company explained, was driven by a recovery in the voice-centric markets coupled with a strong contribution from customers active within the machine to machine and industrial internet of things market areas.

It was the company’s first full financial year as a ‘pure play semiconductor business’ focused solely on the communications market, following the disposal of its Storage division, Hyperstone, for $49 million in February.

CML Microsystems recommended a final dividend of 5 pence per share, taking the full-year dividend to 9p per share. This is down from the bumper full-year dividend of 52p per share paid out the previous year as a result of the Hyperstone sale.

CML Microsystems boasted that the future has ‘never been brighter’, adding it was confident in its growth for both the year ahead and in the longer-term.

‘While the sector-wide challenges remain, we are very well placed to continue executing on our growth strategy and to cement our position as one of the first-choice semiconductor partners to technology innovators across the globe,’ said Managing Director Chris Gurry.

Shares in CML Microsystems were up 0.9% at 353.30 pence on Tuesday morning in London.

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