Market Cap£24m

Last Close 11.38p

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

Group sales declined by 9% year-on-year during FY21. Strong growth in defence sales partly offset a decline in sales of transceivers for 5G XHaul links and a slowdown in sales to the US public safety market during H121 as budget was diverted during the pandemic. This market began to recover during Q4. The improvement in adjusted EBITDA was attributable primarily to increased manufacturing efficiencies and a more favourable sales mix. Net cash (excluding IFRS 16 leases) increased from £0.4m at end FY20 to £1.9m at end FY21.

Y/E May
Revenue (£m)
PBT (£m)
EPS (p)
P/E (x)
P/CF (x)
2020A 17.2 1.2 0.1 0.05 227.6 N/A
2021A 15.6 1.8 0.1 0.14 81.3 9.7
2022E 18.0 2.0 0.7 0.34 33.5 20.3
2023E N/A N/A N/A N/A N/A N/A
Industry outlook

Our FY22 estimates assume that the recovery noted in the critical communications markets during Q421 continues during FY22. In addition, FY22 is likely to benefit from the £1.3m contract win from a new major UK defence customer for the supply of battlefield radio communications hardware announced in January 2021. This strong revenue growth will be accompanied by an increase in overheads as the company resumes physical meetings with potential customers and invests in additional engineering resource to support new customers and develop product for emerging communications frequencies such as W-band.

Last updated on 20/10/2021
Content on Filtronic
Filtronic – Building a stronger connection
TMT | Initiation | 2 June 2021
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Share price graph
Balance sheet
Forecast net cash (£m) 0.8
Forecast gearing ratio (%) N/A
Price performance
Actual 1.1 3.4 28.5
Relative* (2.1) (1.3) 3.5
52-week high/low 12.5p/7.2p
*% relative to local index
Key management
Howard Ford Chairman
Rob Smith CEO
Mike Brennan CFO