Mobile phone technology firm Filtronic has seen its revenues and profits drop as it concluded a challenging year.
The Leeds-based company revealed a slide in pre-tax profit from £2.7m to £100,000 for the year ended May 31, 2019. While revenue dropped from £21.6m to £15.9m.
However, the firm said that it had entered the new year with optimism as it looks to deliver “significant” organic growth.
Filtronic said there was a strong demand for 5G backhaul products with the firm securing over £10m of order intake for Orpheus module.
It added that production capacity and capability has been increased at its Sedgefield site to meet rising demand on this front.
Reg Gott, chairman of Filtronic, said: “We have concluded a challenging year but entered the new year with optimism and excitement as we seek to capitalise on numerous opportunities with the potential to deliver significant organic growth.
“The decision to divest our Telecoms Antenna Operation allows us to focus on a profitable continuing business where we can sustainably differentiate ourselves in the market and operate with a reduced geographical footprint and a more efficient overhead cost base.
“We are delighted with the recent order intake in excess of £10m for our class-leading Orpheus transceiver product, utilised in 5G backhaul networks, which builds on the long-term defence contracts we have accumulated in recent years.
“This progress in these key markets, together with the new products we are developing for our customer in the public safety market, will provide us a robust layer of business on which to build and grow.
“To enable us to exploit these opportunities, we have made significant investments in both plant and machinery and further expanded our engineering team to augment capacity and capability in order to facilitate further contract wins.”