In this study, the on-going research into the improvement of micro-gas turbine propulsion system performance and the suitability for application as propulsion systems for small tactical UAVs (<600 kg) is investigated. The study is focused around the concept of converting existing micro turbojet engines to turbofan with the use of a continuously variable gearbox, thus maintaining a single spool configuration and relative design simplicity. This is an effort to reduce the initial engine development cost, whilst improving propulsive performance. The BMT 120 KS micro turbojet engine is selected for performance evaluation of the conversion process using gas turbine performance software, GasTurb13. The preliminary design of a matched low-pressure compressor (LPC) for the proposed engine is then performed using meanline calculation methods. According to the analysis carried out, an improvement in the converted micro gas turbine engine performance in terms of thrust and specific fuel consumption is achieved. Furthermore, with the introduction of a CVT gearbox, fan speed operation may be adjusted independently of the core, allowing increased thrust generation or better fuel consumption. Therefore, enabling a wider gamut of operating conditions and enhances the performance and scope of tactical UAV.