Filtronic turns a corner with £17m in orders
Shares shot up 23 per cent to close at 10p after the Leeds-based firm said it has received substantial follow-on production orders for its new range of integrated antennas from a major European network and telecommunications equipment manufacturer.
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Hide AdAnalyst George O’Connor at Panmure said: “With news of orders valued at £17m, Filtronic proves that it has not just turned a corner – rather it has driven a truck through it. The news is further endorsement of our view that the company, after a very difficult period, appears to have found its mojo.
“Whilst we have elected to retain our ‘under review’ stance for now, we are very encouraged.”
The new orders, which add up to £16.8m, are follow-on deals to previously announced orders which were worth £9.5m.
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Hide AdFiltronic’s CEO Rob Smith said: “These new orders are a further sign of the market acceptance being shown for our new antenna products.
“As with any new product introduction it is difficult to predict the timing and scale of market demand.
“However, we are delighted with the progress made to date.”
The company expects that the new orders will be fulfilled in the financial year ending May 31.
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Hide AdThe group has conducted an initial review of the working capital requirements to fund the new orders and believes that its existing invoice discounting facilities will be sufficient.
The board will continue to monitor this closely as production commences to fulfil these orders.
Filtronic will provide further information on trading in a pre-closing statement that will be issued next month.