Shares on the rise as host of new orders gives lift to Filtronic

Shares in mobile phone technology firm Filtronic jumped 6 per cent on the news of a significant improvement in trading in the second half following a raft of new orders.

Rob Smith, CEO of the Leeds-based firm, reported a growing pipeline of enquiries.

Revenue for the ​year to May 31 ​fell from £17.5m to​ £13.6m​, but it doubled in the second half to £9.1m.

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​​“The prospects for both integrated ultra-wide band antennas and E-band transceivers continue to be encouraging and the growing pipeline of enquiries represents a considerable opportunity for the business to continue its recovery toward delivering sustainable growth,” said Mr Smith.

Sales revenue in ​the group’s​ ​wireless business ​fell from £10.3m to​ £9.0m ​over​ the year, but second half revenue rose from £6.4m to £7.0m.

​“​We were pleased to announce a succession of orders for integrated ultra-wide band antennas,” said Mr Smith​.

​“​Production of these antennas ramped through the period and during May we started to commission a second production line at our manufacturing partner’s factory. Initial production margins for this product were low but have significantly improved as we have overcome start-up yield and volume ramp issues.​​”

The group reported broadband ​sales revenue of £4.6m in the year, down from £7.2m, as sales of legacy products ​fell whilst the market adoption of E-band transceivers for wireless backhaul to replace these revenues ​was slower than anticipated.

​“​However, the impact of the reduced sales on operating profit has been largely mitigated by cost saving measures, implemented in the previous financial year and improvements in product margins delivered during the year under review​,” said Mr Smith​

​​“​Interest from other potential customers is also increasing. We have received orders from eight clients, totalling over 150 units for evaluation in applications that range from telecoms backhaul to aerospace.​”​

Analyst George O’Connor at Panmure said: “Filtronic’s full-year trading update features a strong second half sequential result with Wireless up 274 per cent as the standout performance.”