Filtronic aims to grow customer base as half year performance meets expectations

FILTRONIC today said it was focusing on broadening its customer base, as it delivered a half year performance which was in line with management expectations.
Filtronic's results will be studied closely by analysts based in the City of London.Filtronic's results will be studied closely by analysts based in the City of London.
Filtronic's results will be studied closely by analysts based in the City of London.

Filtronic, which is designer and manufacturer of products for the wireless telecoms and critical communications markets, has announced its half year results for the six months ended 30 November 2020.

The company said that its performance for the first half of 2021 was broadly flat compared with the prior year, but in line with management expectations, with sales revenue of £7.1m, compared with £7.5m in the same period the year before.

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In a statement, the company added: "As previously announced, revenue was impacted by a slowdown in sales to the public safety market and a slower than anticipated switch by our lead telecoms OEM customer from the Orpheus generation of our 5G E-band XHaul transceiver to the next generation Morpheus platform.

"These were partially offset by stronger sales in the defence and aerospace market, which resulted in an operating profit of £0.1m (H1 2020: £0.3m) and adjusted EBITDA of £0.6m (H1 2020: £0.6m)."

Reg Gott, the company's chairman, said: “While the impact of Covid-19 on the outlook remains uncertain, the fundamentals of the group remain intact with year-on-year growth of EBITDA anticipated for FY2021 despite the disruption we are seeing in the wider economy.

"The broadening of the customer base is the key strategic objective of the group but with travel restrictions constraining commercial engagement this has proved more challenging to achieve.

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"Despite this, the group has actively progressed its strategy to develop the channels to market across multiple territories and is currently in the early stages of executing the marketing plan to raise the profile of the company and build the brand in existing and adjacent markets.

"The recent contract win with a new defence OEM customer underlines the technical strength within our engineering function and our ability to rapidly deliver first class technical proposals, a competitive advantage that positions us well to win other opportunities in this market.

"Over the coming year we will further invest in our teams tasked with top-line growth and new technology development as we execute on our strategic plans to build the business and leverage our recent investments in operational capital and product development.”