Market Cap£22m

Last Close 10.13p

Filtronic is a designer and manufacturer of advanced RF communications products supplying a number of market sectors including mobile telecommunications infrastructure, public safety, defence and aerospace.

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Investment summary

Filtronic’s H122 results show a 12% growth in revenues to £8.0m. A sustained recovery in the US public safety market, where sales doubled year-on-year, offset a 35% fall in sales of XHaul transceivers caused by a supply chain issue. The pre-tax result (adjusted for exceptional items) moved from a loss of £0.1m in H121 to a profit of £0.6m in H122, reflecting a more favourable sales mix as well as higher revenues. Net cash (net of all lease obligations except right of use property leases) increased by £0.3m during the period to £2.2m at end H122, after £0.5m was absorbed in working capital.

Y/E May
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2020A 17.2 1.2 0.1 0.05 205.0 N/A
2021A 15.6 1.8 0.1 0.14 73.2 8.7
2022E 17.4 2.0 0.8 0.40 25.6 14.7
2023E 19.0 2.1 0.9 0.42 24.4 14.7
Industry outlook

XHaul sales picked up in Q222 when the supply chain issue was resolved so we assume that H222 revenues will be higher than H122. Management expects that, so long as there are no further supply chain issues, XHaul sales will remain at this higher level during H222 and into FY23. H222 revenues will also benefit from deliveries of the bulk of the production units for the battlefield communications contract, for which the initial deliveries were made in H122.

Last updated on 19/05/2022
Content on Filtronic
Filtronic – Recovery continues into H122
TMT | research Update | 8 February 2022
Filtronic – Successful focus on new customer acquisition
TMT | research Flash note | 28 October 2021
View more
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Share price graph
Balance sheet
Forecast net cash (£m) 2.3
Forecast gearing ratio (%) N/A
Price performance
Actual (4.7) (18.0) 17.1
Relative* 1.8 (11.9) 19.4
52-week high/low 12.8p/8.8p
*% relative to local index
Key management
Howard Ford Chairman
Rob Smith CEO
Mike Brennan CFO