Filtronic moves back into profit

MOBILE telecoms group Filtronic said it expects a swing to profit as it reported that its broadband unit performed better than April’s upgraded expectations for both sales and profits.
By The Newsroom
Published 11th Jun 2012, 09:36 BST

The Shipley-based group said in a trading update that sales for each of its broadband and wireless businesses are expected to reach £13m for the year ended May 31, 2012.

It said: “Both business segments were also profitable for the full year, enabling the group to move into profitability (before intangible amortisation) for the year as a whole.”

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The broadband business was helped in the final two momths of the trading period by “end-of-programme purchases by a major customer and favourable currency movements”, said the company. It added that the wireless business also finished the year “strongly with sales on several programmes for the US market gathering momentum”.

The group added: “Broadband continues to have encouraging order coverage into the first half, whilst wireless enjoys better forward visibility than is customary for its filter products, which are normally subject to short notice order call-off.”

Filtronic slipped to a £1.2m pre-tax loss in the six months to the end of November, 2011, compared with £0.1m profits a year earlier. Revenues fell £2.3m to £7.3m from the same period a year earlier, although increased from the £6m recorded in the preceding six months.