Strong signals from Filtronic as wireless unit makes progress

The Leeds-based company has been boosted by a strong performance at its wireless unit, sending shares of the network equipment maker up 11p to 63p.

Filtronic said its wireless business is making good progress with sales of its LTE/4G mitigation filters, which prevent 4G services interfering with domestic television receivers, driving its fourth-quarter performance.

The company said the exact timing of these filter sales is difficult to forecast, but it anticipates that it will beat current market forecasts for wireless turnover and profit.

Filtronic said revenues are expected to be about £38.5m for the year ending May 31.

Panmure Gordon analyst George O’Connor said: “The valuation has long been very attractive, but investors have been unsure about the operational outlook – now any concerns should abate.”

The group’s shares have gained nearly 65 per cent in the past year.

Filtronic has signed a multi-million pound deal to reduce interference to TV signals from the next-generation mobile network roll-out.

Most mobile phone operators plan to launch their fourth-generation (4G) mobile networks later this year .

The 800 MHz band was freed up when analogue TV was switched off, but it sits next to the frequency used to broadcast digital TV, meaning problems for homes close to base stations.

Filtronic has announced deals worth more than £14m to supply filters to mitigate the impact of 4G on TVs in Europe.

Filtronic worked with communications watchdog Ofcom to design filters to prevent interference.

The Government estimates 2.3m households could be affected, although it says that only about 900,000 of these rely on digital TV, with the rest linked to broadband, cable or satellite TV.

Filtronic’s chief executive Alan Needle said the group will supply UK households with around a million filters, which plug into aerials.

It is outsourcing their manufacture to China.

One of three suppliers in the UK, it won around 50 per cent of the UK opportunity.

With mobile networks creaking under huge volumes of data, 4G aims to provide superfast wireless broadband for mobile users.

EE launched its own 4G network last year by reusing some of its 1800 MHz spectrum.

The Government has set aside £180m to tackle the TV interference problem.

Mr Needle said there is also scope to supply filters for additional TVs.