Filtronic shares leap on news of contract

The Leeds-based group said the order, with a major European manufacturer, is the first volume contract for Filtronic’s new range of integrated antennas.

The order follows on from and replaces a previous contract win announced last October.

Filtronic said it expects to fulfil the order in the current financial year.

The shares closed up 10 per cent, a rise of 0.5p to 5.5p, but this is still a big fall from the 26.5p valuation this time last year.

The news will cheer shareholders after last month’s news that investors took up just half of the shares made available under its recently announced open offer.

The firm managed to raise £500,000, rather than the £1m it hoped to achieve.

Only 10.0 million of the 20.0 million shares on offer, priced at 5.0 pence per share, were taken up by shareholders.

​The p​roceeds will be used by Filtronic for general working capital purposes.

The fundraising follows Filtronic’s move to raise £4.5m in August as it switched to the smaller AIM market from the London Stock Exchange’s main market.

​In the year to May 31, Filtronic made an £11m pre-tax loss following what it described as a challenging and difficult year when customer demand fell short of its expectations.