Last close As at 05/08/2026
GBP2.42
▲ 9.00 (3.86%)
Market capitalisation
GBP533m
Research: TMT
Prior to its AGM on 31 October Filtronic confirmed that it was confident of delivering FY25 results in line with market expectations. It expects a higher revenue weighting in H125 reflecting the phasing of orders from its largest customer. Filtronic has made good progress with its technology roadmap, manufacturing capacity and engineering hires, and is in advanced discussion for further contracts in the space and aerospace & defence markets, supporting continued growth of the business.
Filtronic |
On track to meet FY25 expectations |
AGM trading update |
Tech hardware and equipment |
1 November 2024 |
Share price performance
Business description
Analysts
Filtronic is a research client of Edison Investment Research Limited |
|||||||||||||||||||||||||||||||||
Prior to its AGM on 31 October Filtronic confirmed that it was confident of delivering FY25 results in line with market expectations. It expects a higher revenue weighting in H125 reflecting the phasing of orders from its largest customer. Filtronic has made good progress with its technology roadmap, manufacturing capacity and engineering hires, and is in advanced discussion for further contracts in the space and aerospace & defence markets, supporting continued growth of the business.
Year end |
Revenue |
EBITDA* |
PBT* |
Diluted EPS* |
DPS |
P/E |
05/23 |
16.3 |
1.3 |
0.1 |
0.06 |
0 |
N/A |
05/24 |
25.4 |
4.9 |
3.4 |
1.43 |
0 |
51.7 |
05/25e |
39.9 |
9.3 |
7.1 |
3.02 |
0 |
24.5 |
05/26e |
41.1 |
9.5 |
6.9 |
2.93 |
0 |
25.2 |
Note: *EBITDA, PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.
As we have previously written, through H224 and H125 Filtronic has seen a strong order flow from SpaceX. It has ramped up production to meet volume and quality requirements, with the addition of a new production line in July and an additional line planned for November. SpaceX orders have been for gateway link rollouts to support the growth of the Starlink constellation as well as to retrofit existing gateway links with E-band solid state power amplifiers (SSPAs). As the retrofit is likely to complete in H125, Filtronic expects FY25 revenue to be H1-weighted, with H225 orders focused solely on supporting new gateways.
Progress with the technology roadmap includes the launch of a W-band SSPA at the European Microwave Exhibition and positive early results from the development of gallium nitride V-band chipsets. These chips will be used in both transceivers and SSPAs and the company has already seen strong interest in the SSPA for space applications, where it could be used for communication links. The company has successfully recruited engineers to support product, opportunity pipeline and customer development, allowing it to work on projects for the European Space Agency, QinetiQ and BAE while developing new products and supporting SpaceX.
The company has won some smaller development contracts in recent months and is in advanced discussions for further contracts in the space and aerospace & defence markets. It has won several contracts in the space market that make use of its plastic encapsulation machinery, originally purchased to provide sovereign capability for defence customers. The company will report H125 results on 4 February 2025. With our FY25 estimates well supported, we maintain our forecasts.
|
|
Research: Financials
Having successfully refinanced in late 2023, Metro Bank is making good progress with repositioning its business model towards higher-return commercial and specialist mortgage lending, reducing its cost of funding and shrinking its cost base. It confidently expects to be profitable before year-end and has guided to strong progress thereafter, reaching a mid- to upper-teens percentage return on tangible equity from 2027. Despite a strong performance since the interims, Metro’s shares are far from pricing in the scale of improvement that management is guiding towards.