Last close As at 05/08/2026
GBP2.42
▲ 9.00 (3.86%)
Market capitalisation
GBP533m
Research: TMT
Filtronic’s strong end to 2023 has continued, with the announcement of a $6m (£4.8m) contract to supply Solid State Power Amplifiers (SSPAs) to a leading supplier of low orbit Earth (LEO) satellite equipment. The contract provides evidence of Filtronic’s capability and growing standing within the space market, in our view. Meanwhile, the company’s £4.5m defence win, announced yesterday, demonstrates continued progress in the business’s traditional defence and telecoms verticals. We are not changing our estimates at this stage but see clearer scope for upside. Continued execution could open the potential for a sustained acceleration in growth with demand for high-end radio frequency systems growing and Filtronic has rare capabilities in this field. The company’s rating is now starting to factor in an acceleration in growth and margin expansion, but given recent progress, this looks entirely merited.
Filtronic |
$6.0m win further strengthens space credentials |
Contract win |
Tech hardware and equipment |
20 December 2023 |
Share price performance
Business description
Analysts
Filtronic is a research client of Edison Investment Research Limited |
|||||||||||||||||||||||||||||||||
Filtronic’s strong end to 2023 has continued, with the announcement of a $6m (£4.8m) contract to supply Solid State Power Amplifiers (SSPAs) to a leading supplier of low orbit Earth (LEO) satellite equipment. The contract provides evidence of Filtronic’s capability and growing standing within the space market, in our view. Meanwhile, the company’s £4.5m defence win, announced yesterday, demonstrates continued progress in the business’s traditional defence and telecoms verticals. We are not changing our estimates at this stage but see clearer scope for upside. Continued execution could open the potential for a sustained acceleration in growth with demand for high-end radio frequency systems growing and Filtronic has rare capabilities in this field. The company’s rating is now starting to factor in an acceleration in growth and margin expansion, but given recent progress, this looks entirely merited.
Year end |
Revenue (£m) |
EBITDA* (£m) |
PBT* |
Diluted |
DPS |
P/E |
05/22 |
17.1 |
2.8 |
1.5 |
0.53 |
0 |
39.3 |
05/23 |
16.3 |
1.3 |
0.1 |
0.06 |
0 |
324.3 |
05/24e |
20.7 |
2.2 |
0.7 |
0.32 |
0 |
65.6 |
05/25e |
22.7 |
2.7 |
1.2 |
0.56 |
0 |
37.8 |
Note: *EBITDA, PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
The deal announced today is with the leading global provider of LEO satellite communications equipment, with which Filtronic has progressed from an initial commercial trial deployment in early 2023 to a first production order (worth $4.25m/£3.4m) in September. That first contract was for a customised version of Filtronic’s E-band SSPA, the Cerus16. This was followed by an order for the first generation Cerus32 product in September 2023 and subsequently this most recent larger production contract is for Filtronic’s second-generation Cerus32 power amplifier, which is being delivered in an accelerated timescale to support the customer’s deployment of E-band enabled ground station antennas. We see the progression of these developments from initial trial deployment to production and follow-on contracts relatively quickly as positive proof of the company’s technical execution capability. The customer is also continuing to work with Filtronic on exploratory development of the Cerus SSPA platform for higher power and alternative frequency bands.
The contract is initially valued at $6.0m (£4.8m) and is expected to be recognised within calendar year 2024, so spread across Filtronic’s H2 FY24 and FY25. Coming hot on the heels of the £4.5m contract with a major UK prime defence contractor, announced yesterday, we believe our forecasts look well supported. We leave our estimates unchanged, partly because the sourcing environment for key components remains complex. Nevertheless, we see good scope for upside and incremental revenue growth should drop strongly through to margins.
|
|
Research: Healthcare
Ultimovacs has announced that its exploratory Phase I TENDU study, built on the company’s vaccine technology platform, Tetanus-Epitope Targeting (TET), has met both its primary and secondary endpoints. The study, which evaluated 12 patients with relapsed prostate cancer across three dose levels, showed a good safety profile across all dose cohorts, with no dose-limiting toxicities observed. The study also met its secondary endpoint of activating an immune response against prostate specific peptides. We see this as an encouraging development, providing early validation of the company’s TET platform, which combines antigens and the vaccine adjuvant into the same molecule with the aim of enhancing T cell response against cancer-specific peptides. We remind readers that the company’s primary asset is its universal cancer vaccine UV1, currently being assessed in five Phase II and two Phase I studies. Topline data from the Phase II INITIUM study (investigating UV1 in combination with ipilimumab and nivolumab in malignant melanoma) are expected in March/April 2024 and represent a key near-term catalyst, in our opinion.