REG - Filtronic PLC - Trading Update & Notice of Final Results

FiltronicAnnouncement

23/06/2023 07:00

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RNS Number : 6512D  Filtronic PLC  23 June 2023

 

23 June 2023

Filtronic plc

("Filtronic")

 

YEAR END TRADING UPDATE, CONTRACT WINS AND NOTICE OF RESULTS

 

Trading Momentum Maintained, Supply Chain Constraints Easing and Strategic
Market Growth

 

Filtronic plc (AIM: FTC), the designer and manufacturer of products for the
aerospace, defence, telecoms infrastructure and critical communications
markets, is pleased to provide the following trading update for the financial
year ended 31 May 2023 ("FY2023").

 

Revenue and adjusted EBITDA have been delivered in line with market
expectations with positive news that the supply chain issues eased in the
final quarter of the financial year. Our opportunity pipeline continues to
build, and we are delighted to have won two new contracts post period end,
each valued at £0.5m.

 

Financial highlights

 

Trading in H2 of the financial year was in line with market expectations for
both revenue and adjusted EBITDA. Therefore, subject to audit, the Board
expects to report FY2023 revenue of approximately £16.3m (FY2022: £17.1m)
and adjusted EBITDA of approximately £1.3m (FY2022: £2.7m). Cash at bank
on 31 May 2023 was £2.6m (30 November 2022: £3.0m). Net cash (net of
all lease obligations except right of use property leases) at 31 May
2023 was £1.9m (30 November 2022: £2.4m).

 

Operational highlights

 

The FY2023 full year results are a testament to the ability of the business to
operate with agility and speed during uncertain times. Having experienced
component shortages in the year, which constrained revenue generation, we were
able to execute a quick ramp of production once supply was restored whilst
continuing to scale the business to respond to the opportunities that are
emerging for mmWave RF technology.

 

Of our four core markets, it is the low earth orbit ("LEO") space opportunity
that has exceeded our expectations in terms of both the size of the
opportunity and the speed of deployment. We are engaged with the leading
players in this segment, where there is increasing demand for high bandwidth
and high frequency backhaul communications between the satellite and the
ground station. We secured our first production order for E-band ground
station solid state power amplifiers from a market leader during the second
half of the year and have exceeded expectations in terms of both delivery and
technical performance. Our RF technology is a potential key enabler in this
sector, and we are committed to building the organisation necessary to execute
our technology roadmap and continue to engage with the major industry players
and relevant government agencies.

 

Demand for telecommunication infrastructure products increased steadily
throughout the year with the opening of the newly licenced Indian market
offsetting the abrupt closure of the Russian 5G rollout last year. Our
inability to execute orderbook due to component shortages did not diminish the
need for innovative new products in the telecommunications market and we
announced our new Morpheus X2, Hades X2 and Hercules X2 products within the
year, securing advanced production orders for delivery in FY2024 on all three
platforms. We continue to look for opportunities adjacent to the primary
telecoms infrastructure market and were delighted to receive two new contract
wins for products going into private telecommunications networks this month.
The contracts valued at £0.5m each are for delivery in 2024 and are the
result of many years of collaborative design effort with our customers.

 

The conflict in Ukraine and increased geopolitical tensions increased the
focus on the aerospace and defence market during the trading period and we
have continued to make good progress, securing follow-on orders for
development programme wins registered in the prior year. Increased business
development and marketing activities are also starting to yield positive
results with several development contract wins from influential players in the
electronic warfare (EW) market. This development roadmap is supported by an
opportunity pipeline that continues to build in terms of both quality and
value based on the need for a UK sovereign defence supply chain.

 

Results for the financial year ended 31 May 2023 will be announced on 1
August 2023.

 

Richard Gibbs, Chief Executive Officer, said:

"Throughout the year our primary markets have remained robust, and we enter
the new financial year with a strong order book, a significant number of
promising development programmes and opportunity pipeline that has doubled
during the course of the last year. Notwithstanding the disruptions caused by
shortages of electronic components, we believe that we are continuing to make
the right investments in the business to capitalise on the exciting near-term
opportunities in our core markets. We have been encouraged by the closing of
two new telecoms infrastructure contracts early in our new trading year and
will look to build further momentum as the year progresses".

 

 

Enquiries:

 Filtronic plc                                              Tel. 01740 618800 or investor.relations@filtronic.com
                                                            (mailto:investor.relations@filtronic.com)
 Richard Gibbs (Chief Executive Officer)
 Michael Tyerman (Chief Financial Officer)

 finnCap Limited                                            Tel. 020 7220 0500
 Jonny Franklin-Adams/George Dollemore (Corporate Finance)
 Alice Lane / Sunila de Silva (ECM)

 Walbrook PR Limited                                        Tel. 020 7933 8780 or filtronic@walbrookpr.com
                                                            (mailto:filtronic@walbrookpr.com)
 Paul Vann                                                  Mob. 07768 807 631

 

Note: This announcement contains inside information which is disclosed in
accordance with the Market Abuse Regulation.

 

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