Filtronic to raise £2.1m through share placing

Alan Needle, CEO of Filtronic in Shipley
Alan Needle, CEO of Filtronic in Shipley
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MOBILE PHONE technology firm Filtronic has tapped shareholders for £2.1m as its customers ramp up investment in fourth generation (4G) communications infrastructure in China and the United States.

Rob Smith, finance director, said the offer was fully subscribed and will fund growth at the Leeds firm.

Filtronic is supplying products to Nokia, Motorola, Alcatel-Lucent and Ericsson, companies once known for mobile handsets but now concentrating on network infrastructure.

Mr Smith told The Yorkshire Post: “We see the main growth in our business coming from those equipment manufacturers.

“Their demand is coming from China where 4G is being rolled out substantially. There is a lot of demand in the US, where 4G has already taken off.”

Mr Smith said the UK has a relatively small amount of 4G coverage and, as a user, would like to see a wider roll-out.

He said the new funds came from existing shareholders and directors, including Aberforth and Legal & General and founder Professor David Rhodes.

Filtronic designs and manufactures equipment for the mobile telephone infrastructure industry. Its products are used in wireless communication equipment and point-to-point communication systems.

Alan Needle, chief executive, said: “We are delighted by the support demonstrated by shareholders for the fundraising.

“In line with our stated strategy of aligning with OEMs, we are seeing a pick-up in activity associated with the 4G roll out.

“This requires a greater investment to prepare for deployment. The funds raised will enable us to strengthen our working capital position to continue to pursue opportunities for both wireless and broadband.

“The board is confident about the prospects for the business.”

Shares rose 8 per cent to close at 23.5p, giving the 37-year-old company a market capitalisation of £22.57m.