Filtronic (AIM: FTC)

Currency in GBP

Last close As at 06/02/2023


−1.00 (−8.33%)

Market capitalisation


Filtronic is a designer and manufacturer of advanced radio frequency communications products supplying a number of market sectors including mobile telecommunications infrastructure, public safety, defence and aerospace.

We have left our FY23 estimates, which are underpinned by a growing orderbook for 5G XHaul transceivers, unchanged. Since gross margins are likely to be lower year-on-year in FY23 because of the higher proportion of Xhaul transceivers, which are price-sensitive, and overheads are likely to be higher because of continued investment in engineering personnel, we model a year-on-year drop in EBITDA (but a substantial increase compared with FY21) even though revenue growth is modelled at 11.5%. Management intends that this investment will result in stronger revenue and profit growth during FY24 and FY25 as the group diversifies into adjacent markets.




Equity Analyst

Anne Crow

Anne Margaret Crow

Director, TMT & Industrials

Key Management

  • Jonathan Neale


  • Michael Tyerman


  • Richard Gibbs


Balance Sheet

Forecast net cash (£m)


Forecast gearing ratio (%)


Share Price Performance

Price Performance
% 1M 3M 12M
Actual (20.7) (8.3) (4.4)
Relative (24.9) (16.7) (5.4)
52 week high/low 16.8p/9.0p


Filtronic has announced a contract win worth more than £2.0m with a new customer in the satellite communications equipment market, demonstrating its ability to diversify outside its three core sectors. However, specific semiconductor component shortages mean that some deliveries for mobile telecommunications infrastructure and defence applications will be delayed from FY23 (year ending May 2023) into FY24. We have cut our FY23 revenue and EBITDA estimates by 13% and 37% respectively to reflect these delays.

Y/E May Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2021A 15.6 1.8 0.1 0.14 78.6 9.4
2022A 17.1 2.8 1.5 0.53 20.8 10.3
2023E 19.0 2.1 0.8 0.39 28.2 18.2
2024E N/A N/A N/A N/A N/A N/A


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