Filtronic PLC Trading Update and Notice of Results (4001I)
June 19 2017 - 1:00AM
UK Regulatory
TIDMFTC
RNS Number : 4001I
Filtronic PLC
19 June 2017
19 June 2017
Filtronic plc (the "Group")
Trading Update and Notice of Results
Filtronic plc (AIM: FTC), the designer and manufacturer of
microwave electronics products for the wireless telecoms
infrastructure and adjacent markets is pleased to provide the
following trading update for the 12-month period to 31 May 2017
("FY2017").
Trading during the fourth quarter continued in line with the
market guidance provided in the Trading Update on 12 May 2017. The
Board therefore expects, subject to audit, to report Group revenue
of approximately GBP35.4m (2016: GBP13.6m) and operating profit
before amortisation of intangibles of approximately GBP1.7m (2016:
GBP6.8m operating loss before amortisation of intangibles). The
Group had net cash of GBP2.6m as at 31 May 2017 (2016: net debt
GBP0.3m).
Filtronic Wireless
The Filtronic Wireless business more than tripled sales revenue
in the year to GBP30.5m (2016: GBP9.0m). The final quarter included
a strong recovery of filter products revenue with customers serving
our two main markets; telecommunications infrastructure and public
safety communications. Demand in the telecommunications
infrastructure market is inherently difficult to predict, but we
anticipate the level of activity seen in the fourth quarter of
FY2017 to continue into the first quarter of FY2018. The
opportunity pipeline for our antenna products continues to expand
and despite lower demand in the second half of FY2017, we have
recently secured some new orders which we expect to fulfill in the
next couple of months. Sales of antennas are expected to remain
lumpy until we widen our customer base but field trials have
commenced with two mobile network operators that we hope will lead
to new contract wins during FY2018 thereby reducing the dependence
on our single OEM customer.
Filtronic Broadband
Sales revenue in our Filtronic Broadband business was
approximately GBP4.9m for the year (2016: GBP4.6m) giving year on
year sales growth of 7%. The weakness seen in Filtronic Broadband
during the second half of FY2017 was attributable to a decrease in
demand from our main customer for Orpheus, our current generation
E-Band backhaul transceiver product. While we do not anticipate
demand recovering from this particular customer we are pleased to
confirm that we have secured new customers for Orpheus and
derivative variants. We have also seen a recovery in demand for
legacy multi-chip packages and with production ramping for the
previously announced, high margin, defence and aerospace contract
win in December 2016, we are confident that Filtronic Broadband is
now well positioned for a period of sustained improvement and a
return to profitability in FY2018.
Notice of Results
The results for the financial year ended 31 May 2017 will be
announced on 1 August 2017.
Rob Smith, CEO of Filtronic plc, commented: "Tremendous progress
was made through FY2017 that has resulted in the Group achieving
both profitability and cash generation. We are mindful that our
revenues have historically been very concentrated and we are
working hard to broaden our customer base and product range so that
the business is more robust".
Enquiries:
Filtronic plc Tel. 0113 220 0000
Rob Smith (CEO) Tel. 07810 774 688
Michael Tyerman (Finance Tel. 07956 029 502
Director)
Panmure Gordon (UK) Limited Tel. 020 7886 2500
Dominic Morley / Alina Vaskina
(Corporate Finance)
Erik Anderson / Tom Salvesen
(Corporate Broking)
Walbrook PR Limited Tel. 020 7933 8780 or
filtronic@walbrookpr.com
Paul Cornelius Mob. 07866 394 707
Helen Cresswell Mob. 07841 917 679
Notes:
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) No 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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