Filtronic PLC Trading Update & Notice of Final Results (6512D)
June 23 2023 - 1:00AM
UK Regulatory
TIDMFTC
RNS Number : 6512D
Filtronic PLC
23 June 2023
23 June 2023
Filtronic plc
("Filtronic")
YEAR END TRADING UPDATE, CONTRACT WINS AND NOTICE OF RESULTS
Trading Momentum Maintained, Supply Chain Constraints Easing and
Strategic Market Growth
Filtronic plc (AIM: FTC), the designer and manufacturer of
products for the aerospace, defence, telecoms infrastructure and
critical communications markets, is pleased to provide the
following trading update for the financial year ended 31 May 2023
("FY2023").
Revenue and adjusted EBITDA have been delivered in line with
market expectations with positive news that the supply chain issues
eased in the final quarter of the financial year. Our opportunity
pipeline continues to build, and we are delighted to have won two
new contracts post period end, each valued at GBP0.5m.
Financial highlights
Trading in H2 of the financial year was in line with market
expectations for both revenue and adjusted EBITDA. Therefore,
subject to audit, the Board expects to report FY2023 revenue of
approximately GBP16.3m (FY2022: GBP17.1m) and adjusted EBITDA of
approximately GBP1.3m (FY2022: GBP2.7m). Cash at bank on 31 May
2023 was GBP2.6m (30 November 2022: GBP3.0m). Net cash (net of all
lease obligations except right of use property leases) at 31 May
2023 was GBP1.9m (30 November 2022: GBP2.4m).
Operational highlights
The FY2023 full year results are a testament to the ability of
the business to operate with agility and speed during uncertain
times. Having experienced component shortages in the year, which
constrained revenue generation, we were able to execute a quick
ramp of production once supply was restored whilst continuing to
scale the business to respond to the opportunities that are
emerging for mmWave RF technology.
Of our four core markets, it is the low earth orbit ("LEO")
space opportunity that has exceeded our expectations in terms of
both the size of the opportunity and the speed of deployment. We
are engaged with the leading players in this segment, where there
is increasing demand for high bandwidth and high frequency backhaul
communications between the satellite and the ground station. We
secured our first production order for E-band ground station solid
state power amplifiers from a market leader during the second half
of the year and have exceeded expectations in terms of both
delivery and technical performance. Our RF technology is a
potential key enabler in this sector, and we are committed to
building the organisation necessary to execute our technology
roadmap and continue to engage with the major industry players and
relevant government agencies.
Demand for telecommunication infrastructure products increased
steadily throughout the year with the opening of the newly licenced
Indian market offsetting the abrupt closure of the Russian 5G
rollout last year. Our inability to execute orderbook due to
component shortages did not diminish the need for innovative new
products in the telecommunications market and we announced our new
Morpheus X2, Hades X2 and Hercules X2 products within the year,
securing advanced production orders for delivery in FY2024 on all
three platforms. We continue to look for opportunities adjacent to
the primary telecoms infrastructure market and were delighted to
receive two new contract wins for products going into private
telecommunications networks this month. The contracts valued at
GBP0.5m each are for delivery in 2024 and are the result of many
years of collaborative design effort with our customers.
The conflict in Ukraine and increased geopolitical tensions
increased the focus on the aerospace and defence market during the
trading period and we have continued to make good progress,
securing follow-on orders for development programme wins registered
in the prior year. Increased business development and marketing
activities are also starting to yield positive results with several
development contract wins from influential players in the
electronic warfare (EW) market. This development roadmap is
supported by an opportunity pipeline that continues to build in
terms of both quality and value based on the need for a UK
sovereign defence supply chain.
Results for the financial year ended 31 May 2023 will be
announced on 1 August 2023.
Richard Gibbs, Chief Executive Officer, said:
"Throughout the year our primary markets have remained robust,
and we enter the new financial year with a strong order book, a
significant number of promising development programmes and
opportunity pipeline that has doubled during the course of the last
year. Notwithstanding the disruptions caused by shortages of
electronic components, we believe that we are continuing to make
the right investments in the business to capitalise on the exciting
near-term opportunities in our core markets. We have been
encouraged by the closing of two new telecoms infrastructure
contracts early in our new trading year and will look to build
further momentum as the year progresses".
Enquiries:
Filtronic plc Tel. 01740 618800 or investor.relations@filtronic.com
Richard Gibbs (Chief Executive
Officer)
Michael Tyerman (Chief Financial
Officer)
finnCap Limited Tel. 020 7220 0500
Jonny Franklin-Adams/George Dollemore (Corporate Finance)
Alice Lane / Sunila de Silva
(ECM)
Walbrook PR Limited Tel. 020 7933 8780 or filtronic@walbrookpr.com
Paul Vann Mob. 07768 807 631
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END
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