Filtronic lands £13m defence contract

Electronics company Filtronic has landed a supply agreement with a major defence equipment manufacturer to supply specialist high frequency modules.

Rob Smith, CEO of Filtronic

The deal will see the Leeds-based business provide modules for the latest generation of defence related aerospace applications.

Filtronic, which is a designer and manufacturer of microwave electronics products for the wireless telecoms infrastructure market, said the deal covers a period of eight years.

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During this time Filtronic will manufacture and test the modules at its certified advanced manufacturing facility in Sedgefield. The deal is expected to generate approximately £13m of net revenue over the term of the agreement.

A spokesman said: “The agreement also provides for further increased volumes in the event that our client secures follow-on project wins with its end-clients.”

Rob Smith, Filtronic chief executive, said: “This agreement is the first substantial defence related business win for Filtronic Broadband and with it we achieve a significant strategic milestone in diversifying our customer and market base.

“We are delighted to have been selected as a supply partner by this prestigious customer and we look forward to further successes in this sector in the future.”

Mr Smith took on the chief executive’s role in March 2015 having previously been chief financial officer.

The deal is the latest in a stream of new contracts Filtronic has announced in 2016, having inked deals worth £2.75m and £1.4m with a European manufacturer in recent months.

Earlier this month Filtronic, which is headquartered in the Leeds suburb of Yeadon, report​ed revenues of £21.6m​ in the six months to November 30​, ​more than ​quadrupling the £4.5m made in the same period last year.

The net cash balance at the period end was £700,000, an £1.1 million upswing on net debt of £400,000 the previous year.

The firm said the improved financial performance was driven by increased sales of its new ultra wide band integrated antennas to​ ​its leading customer, following the successful product launch earlier ​this year​.​

It was also boosted by the popularity of mobile phone games such as Pokemon Go.