Last close As at 05/08/2026
GBP2.42
▲ 9.00 (3.86%)
Market capitalisation
GBP533m
Research: TMT
Filtronic has signed a contract with QinetiQ to supply a radio frequency (RF) sub-system for use in an upgraded radar system. This is Filtronic’s first contract with QinetiQ, a target customer in the aerospace and defence sector. Following on from the £4.5m contract signed with a UK prime defence contractor in December, Filtronic is showing good progress in this market. Combined with growing demand from the space sector, we believe the company is successfully diversifying its business on both a customer and sector basis as customers recognise Filtronic’s expertise in high-end RF.
Filtronic |
New customer win in defence market |
Contract win |
Tech hardware and equipment |
16 January 2024 |
Share price performance
Business description
Analyst
Filtronic is a research client of Edison Investment Research Limited |
|||||||||||||||||||||||||||||||
Filtronic has signed a contract with QinetiQ to supply a radio frequency (RF) sub-system for use in an upgraded radar system. This is Filtronic’s first contract with QinetiQ, a target customer in the aerospace and defence sector. Following on from the £4.5m contract signed with a UK prime defence contractor in December, Filtronic is showing good progress in this market. Combined with growing demand from the space sector, we believe the company is successfully diversifying its business on both a customer and sector basis as customers recognise Filtronic’s expertise in high-end RF.
Year end |
Revenue (£m) |
EBITDA* (£m) |
PBT* |
Diluted |
DPS |
P/E |
05/22 |
17.1 |
2.8 |
1.5 |
0.53 |
0 |
41.2 |
05/23 |
16.3 |
1.3 |
0.1 |
0.06 |
0 |
339.7 |
05/24e |
20.7 |
2.2 |
0.7 |
0.32 |
0 |
68.7 |
05/25e |
22.7 |
2.7 |
1.2 |
0.56 |
0 |
39.6 |
Note: *EBITDA, PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
Filtronic has signed QinetiQ as a new customer in the defence and security market, winning a new contract worth £2.0m supporting the upgrade of an established radar system. Phase 1 of the contract is to develop an RF sub-system to be installed in a range radar solution that can be deployed as a vehicle-mounted land system or a helicopter-mounted mobile solution. The design will make use of the company’s expertise in the design, assembly and tuning of complex RF filters together with the manufacture and test of highly integrated RF transmit and receive modules.
Revenue is expected to be recognised over the next two years. We note that in FY23, the aerospace and defence market contributed around a quarter of group revenue. Following on from the £4.5m contract with a UK prime defence contractor announced in December, the company is showing positive momentum in this end market, supporting our forecasts.
|
|
Research: TMT
Following a successful proof of concept, Nanoco recently announced a new joint development agreement (JDA) with its existing European customer, now confirmed as STMicroelectronics. This milestone further validates Nanoco’s smart materials capabilities, building on the first commercial orders for first-generation materials shipped in late 2023 and the expanded partnership with its Asian customer. With an improved financial position, Nanoco has been able to proactively invest in accelerating the development of new materials and services. The non-licence fee income and additional test material sales from the JDA help de-risk our FY24 revenue forecasts. Securing collaborations like this JDA will be key for Nanoco to continue scaling commercial production and delivering on management’s goal of becoming self-financing in CY25.