Filtronic — Successful focus on new customer acquisition

Filtronic (AIM: FTC)

Last close As at 24/04/2024


16.00 (48.48%)

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Filtronic — Successful focus on new customer acquisition

Filtronic’s AGM statement notes that the group’s trading performance during the opening months of FY22 has been in line with management forecasts and shows a healthy improvement on FY21. Management remains confident of delivering results for the full year in line with market expectations. We therefore leave our estimates, which look for 15.5% year-on-year revenue growth and a 13.7% rise in EBITDA, unchanged.

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Successful focus on new customer acquisition

AGM update

Tech hardware & equipment

28 October 2021



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Business description

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.


Anne Margaret Crow

+44 (0)20 3077 5700

Dan Ridsdale

+44 (0)20 3077 5729

Filtronic is a research client of Edison Investment Research Limited

Filtronic’s AGM statement notes that the group’s trading performance during the opening months of FY22 has been in line with management forecasts and shows a healthy improvement on FY21. Management remains confident of delivering results for the full year in line with market expectations. We therefore leave our estimates, which look for 15.5% year-on-year revenue growth and a 13.7% rise in EBITDA, unchanged.

Year end

Revenue (£m)


































Note: *PBT and EPS are normalised, excluding amortisation of acquired intangibles, exceptional items and share-based payments.

Last week, Filtronic announced that it had won a contract to supply pilot-phase production units of radio frequency (RF) front-end modules for next-generation over-the-air 5G test equipment. Filtronic’s custom-designed mmWave modules enable the customer, a leading RF test equipment company in the United States, to extend the frequency range of its existing product offering above 50GHz. The new contract follows a $1.0m order awarded in February 2020 for the initial design and development of the RF modules. The follow-on contract of $0.8m (c £0.6m) is deliverable over a period of 18 months, with revenue predominantly recognised in FY23, and may be followed by further production orders.

Importantly, this recent contract demonstrates that Filtronic is making progress in its stated strategy of broadening its customer base and penetrating adjacent markets. This strategy should increase the utilisation of its specialist RF manufacturing facility, although it will take time for this to translate into an improved operating margin because management is currently investing in engineering personnel and spending more on marketing, including attendance at trade exhibitions, as COVID-19-related travel restrictions ease.

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