REG - Filtronic PLC - Interim Results
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RNS Number : 4033R Filtronic PLC 03 February 2026
3 February 2026
FILTRONIC PLC
("Filtronic", the "Company" or the "Group")
HALF YEAR RESULTS FOR THE SIX MONTHS ENDED 30 NOVEMBER 2025
Filtronic plc (AIM: FTC), the designer and manufacturer of products and
sub-systems for the aerospace, defence, telecoms infrastructure, space and
critical communications markets, is pleased to announce its half year results
for the six months ended 30 November 2025 ("H1 2026").
The Group delivered an encouraging first-half performance, with financial
results in line with the Board's expectations and very positive momentum in
new business activity. Revenue was similar to the record prior period which
benefited from peak delivery on major space programmes. H1 2026 displayed a
more balanced delivery profile with profitability reflecting deliberate and
targeted investment in people, facilities and product development to position
the business for accelerated growth. Cash generation remained strong, enabling
continued strategic investment and leaving the Group well positioned to
capitalise on a rapidly expanding Defence and Space pipeline. Following strong
order levels in H1 2026, Filtronic has entered the second half of FY2026 with
a record order book, providing clear visibility and confidence in our strategy
and sustained long- term growth.
Financial
Highlights
H1 2026 H1 2025
Revenue £25.3m £25.6m
Adjusted EBITDA¹ £5.1m £8.7m
Operating profit £2.6m £6.8m
Profit for the period £2.6m £6.7m
Basic earnings per share 1.20p 3.08p
Diluted earnings per share 1.14p 3.04p
Cash generated from operating activities £3.4m £2.1m
At 30 Nov 2025 At 30 Nov 2024
Net cash when including right of use property leases £6.8m £4.3m
Net cash when excluding right of use property leases £8.2m £5.1m
¹ Adjusted EBITDA is earnings before interest, taxation, depreciation,
amortisation, share-based payments and exceptional items.
Significant contract momentum and diversification of revenue mix
· Continued deepening of the relationships with key customers, including
largest-ever contract with SpaceX, valued at $62.5 million.
· Accelerating diversification of customer base, with new multi-year contract
wins including a €7.0 million agreement with a European space customer and a
£13.4 million contract with a leading European defence prime, strengthening
the Company's position across space, aerospace and defence markets.
Continued execution of five-year growth strategy
· Deployment of GaN E-band products represents a step change in performance,
unlocking emerging opportunities in space ground systems and high-capacity
data links.
· Broadening of addressable markets, with development underway on additional
frequency bands, including a 550W Ka-band solid-state power amplifier,
supported by a £1.2 million UK Space Agency NSIP award received post period
end.
· Next-generation GaN amplifier systems remain on track for launch in calendar
year 2026, including expansion into V-band, and expected to be a key driver of
growth over the next three to five years.
Operational scale and investment to support future growth
· Self-funded relocation to a larger headquarters and manufacturing facility
completed during H1 FY2026, providing materially increased production capacity
and capability to support demand.
· Investment in the technology and product roadmap continues at pace, reflecting
the Board's confidence in medium- and long-term opportunities.
· Enhanced programme management and organisational capability to support a
growing number of concurrent major customer programmes.
Outlook
· Filtronic has entered the second half of FY2026 with a record order book,
increasing customer diversification and strong engagement across its core
markets.
· Growing visibility and quality of revenues, with approximately 90% of FY2026
revenues covered by contracted orders, providing strong visibility into H2 and
beyond.
· After a good first half, with strong momentum in the business, the Board
remains confident in meeting current market expectations for revenues and
EBITDA for FY2026.
Nat Edington, Chief Executive Officer, commented: "The first half of the year
demonstrated the strength of Filtronic's positioning in markets where
performance, reliability and security are mission critical. Demand across our
space, aerospace and defence markets remains robust, and our focus on
high-frequency RF technologies continues to differentiate us with customers
operating in the most demanding environments.
With a record order book, increasing customer diversification and the business
now operating at greater scale, we have entered the second half confident of
continuing our planned growth."
(1) As at 2 February 2026, the Board understands that market expectations for
FY2026, based on published analyst forecasts, are for revenue of £55.5m,
within a range of £54m to £56.9m and EBITDA of £10.9m, within a range of
£10.1m to £12.0m.
Enquiries
Filtronic plc www.filtronic.com
Nat Edington, CEO 01740 618800 or
Michael Tyerman, CFO investor.relations@filtronic.com
Cavendish Capital Markets Limited (Nomad and Corporate Broker) 020 7220 0500
Jonny Franklin-Adams/Isaac Hooper/Callum Davidson (Corporate Finance)
Sunila de Silva (Corporate Broking)
Berenberg (Joint Broker) 020 7220 0500
Tom Ballard, Mark Whitmore, Harry Nicholas,
Brooke Harris-Lowing
Alma Strategic Communications 020 3405 0205 or filtronic@almastrategic.com
Caroline Forde, Hannah Campbell, Rose Docherty
Alma Strategic Communications
020 3405 0205 or filtronic@almastrategic.com
Caroline Forde, Hannah Campbell, Rose Docherty
Notes:
This announcement contains inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014.
Forward-looking statements
Certain statements in this half-yearly financial report are forward-looking.
Where the half-yearly financial report includes forward-looking statements,
these are made by the directors in good faith based on the information
available to them at the time of their approval of this report. Such
statements are based on current expectations and are subject to a number of
risks and uncertainties, including both economic and business risk factors
that could cause actual events or results to differ materially from any
expected future events or results referred to in these forward-looking
statements. Unless otherwise required by applicable law, regulation or
accounting standard, the Group undertakes no obligation to update any
forward-looking statements whether as a result of new information, future
events or otherwise.
Chief Executive's review
H1 FY2026 has been one of strong strategic execution for Filtronic. We have
continued to build on our technological leadership and long-standing customer
relationships, while investing to support the next phase of growth. The
momentum achieved during the half reflects both the scale of the opportunity
in our core markets and the progress we are making in building a business
capable of supporting sustained diversified growth.
Market dynamics
We operate in markets where performance, reliability and security are
mission-critical, and where demand remains robust. Our core markets of space
and defence continue to be supported by sustained satellite deployment
activity, increased defence expenditure and growing requirements for secure,
high-frequency communications. Customer programmes are increasingly focused on
higher spectrum solutions and advanced technologies such as gallium nitride
("GaN"), areas where Filtronic has established a market leading technical
capability. As a result, we continue to see active engagement across both new
and existing customers, reinforcing our positioning within these strategically
important markets.
Financial performance
In the first half of the year, as expected, revenue was broadly in line with
the prior period at £25.3m (H1 FY2025: £25.6m). As previously communicated,
deliberate and targeted investment in the business, to achieve sustainable
long-term revenue growth in high-growth markets, meant profits were lower in
the period than the same period last year with adjusted EBITDA of £5.1m (H1
2025: £8.7m) and an operating profit of £2.6m (H1 2025: £6.8m).
As highlighted in previous announcements, the weaker USD had an impact on
revenues in the period, given the Group's significant exposure to North
America. At the same time, the benefits of last year's strategic investments
are starting to be realised, including the expansion of our engineering teams,
the opening of our new facility, and the associated increase in production
capacity to support future growth. While these initiatives have increased
costs in the short term, they establish a strong foundation for sustainable
growth and are critical to strengthening the business for the years ahead.
We ended the Period in a strong financial position, with £10.5m of cash in
the bank (31 May 2025: £14.5m), having self-financed the capital project to
relocate to the larger headquarters and manufacturing site at Sedgefield, and
£8.2m in net cash when excluding right of use property leases (31 May 2025:
£5.1m).
Strategic progress
The Period was characterised by significant contract momentum and further
deepening of key customer relationships. We secured our two largest contract
awards with SpaceX, which strengthened our strategic relationship, of which
the second contract will start to be delivered in FY2027. On top of this, the
second award worth £47.3m, represents the first deployment of our next
generation, proprietary GaN E-band product. These wins demonstrate not only
confidence in our products, but also in our ability to deliver consistently,
at scale and to demanding specifications.
Alongside this, we continued to make strong progress in diversifying our
customer base, as demonstrated by a €7.0m (£5.8m) multi-year contract with
a leading European aerospace manufacturer. This contract is to supply RF
assemblies for integration into a major Low Earth Orbit satellite
constellation programme. In addition, we secured a £13.4m contract with a
leading European defence prime for the supply of high-performance active
components for the next phase of a long-standing electronic sensor programme.
Post-period end, we also secured an Authorisation to Proceed, for an expected
£11.0m contract, for a follow-on contract that gives order cover for a
further two-years with the same European defence prime.
Engagement with major primes, within space and defence, and government
organisations is increasing, supported by our sovereign accreditations,
manufacturing capabilities and proven track record in high-reliability RF
systems. This diversification is an important strategic priority, reducing
customer concentration over time while also expanding our addressable market.
We moved into our new headquarters in Sedgefield in November and will be
periodically migrating our manufacturing lines over the next few months as
customer programmes allow for transfer. The official opening of the building
will take place on 26 February 2026 as we celebrate our new state-of-the-art
facility enabling us to scale and futureproof the business operations for the
next phase of growth.
Innovation
Innovation is central to Filtronic's long-term growth strategy. As demand for
high-speed data continues to accelerate, communications systems are
increasingly moving into higher RF bands to enhance performance and alleviate
congestion at lower frequencies.
The V-band and W-band regions of the RF spectrum offer substantial potential
for next-generation, high-capacity wireless communications. V-band, in
particular, provides extensive bandwidth and is expected to be widely adopted
by satellite communication companies.
Filtronic is at the forefront of developing the critical enabling technologies
needed to unlock the full potential of these higher-frequency bands. Our Cerus
range of solid-state power amplifiers ("SSPAs") delivers class-leading power
performance across V-band, E-band and W-band frequencies. As bandwidth and
data demands continue to grow, these SSPAs are well positioned to support a
wide range of high-performance wireless and space applications.
This technology leadership is underpinned by strong execution against our
product roadmap. The successful development and initial deployment of our GaN
E-band product, represent a step change in performance and reinforces the
progress being made across our innovation programme. Further product launches
are planned for calendar year 2026, targeting emerging opportunities in space
ground systems. Our family of very high-power V-band amplifiers being released
in FY2026 will open up opportunities in medium earth orbit ("MEO") and
geostationary ("GEO") for the business for the first time. In addition, the
recent award of £1.2 million in funding from the UK Space Agency's National
Space Innovation Programme, supporting the development of a 550W Ka-band
solid-state power amplifier, further reinforces our intent to capitalise on
the significant opportunity emerging within the global space ecosystem.
People and operations
The progress delivered by our teams across the business in the first half of
the year has been instrumental in strengthening both our execution capability
and commercial momentum. Investment in our commercial teams is enabling
earlier and more effective engagement across programme lifecycles, enhancing
alignment with major primes and government customers, whilst also accelerating
the expansion of our opportunity pipeline.
This commercial momentum is matched by the continued scaling of our
engineering capability. The successful expansion of our Cambridge operation in
FY2025 now supports multiple concurrent development programmes, while the
self-funded relocation to a larger headquarters and manufacturing facility in
Sedgefield provides materially increased production capacity and capability.
Together, these advances reflect a more integrated, higher-value organisation,
better positioned to capture complex, global opportunities. They also support
our strategic progression up the value chain, expanding our expertise beyond
RF into digital, software, and system-level solutions.
Outlook
The first half of the year has demonstrated that the investments made in both
capacity, capability and technology, are delivering tangible commercial
successes. With a record order book, including new and diverse customer
contract wins, we have entered H2 in a strong position and are confident of
meeting market expectations for the full year.
Over the longer term, customers are expressing a growing need for
high-frequency, secure, and resilient communications infrastructure across
many platforms which provide the Group with supportive structural growth
drivers across its key markets. With our expanded manufacturing capacity now
fully operational, we believe we have exciting products and capabilities to
match this growing need.
Nat Edington
Chief Executive Officer, 3 February 2026
Condensed Consolidated Interim Income Statement
For the period ended 30 November 2025
6 months 6 months Year
Ended Ended Ended
30 November 30 November 31 May
2025 2024 2025
(Unaudited) (Unaudited) (Audited)
Continuing operations Note £000 £000 £000
Revenue 5 25,253 25,595 56,318
====== ====== ======
Adjusted EBITDA¹ 5,059 8,712 17,011
Depreciation of property, plant and equipment and right of use assets (807) (607) (1,315)
Amortisation of intangible assets (339) (258) (537)
Amortisation of contract assets (889) (901) (1,303)
Share-based payments (408) (185) (414)
---------- ---------- ----------
Operating profit 6 2,616 6,761 13,442
Finance costs (168) (127) (268)
Finance income 165 101 213
---------- ---------- ----------
Profit before taxation 2,613 6,735 13,387
Taxation 29 (7) 662
---------- ---------- ----------
Profit for the period 2,642 6,728 14,049
====== ====== ======
Basic and diluted earnings per share (pence)
Basic earnings per share 7 1.20p 3.08p 6.42p
Diluted earnings per share 7 1.14p 3.04p 6.05p
====== ====== ======
1 Adjusted EBITDA is defined as profit before
interest, taxation, depreciation, amortization, share-based payments and
exceptional items which is a non-GAAP metric used by management and is not an
IFRS disclosure.
Condensed Consolidated Interim Statement of Comprehensive Income
For the period ended 30 November 2025
6 months 6 months Year
Ended Ended Ended
30 November 30 November 31 May
2025 2024 2025
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Profit for the period 2,642 6,728 14,049
---------- ---------- ----------
Items that are or may be subsequently reclassified to profit and loss:
Currency translation arising on consolidation (78) (15) 154
---------- ---------- ----------
Total comprehensive income for the period 2,564 6,713 14,203
====== ====== ======
The total comprehensive income for the period is attributable to the equity
shareholders of the parent company Filtronic plc.
Condensed Consolidated Interim Statement of Financial Position
At 30 November 2025
Note 30 November 30 November 31 May
2025 2024 2025
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Non-current assets
Goodwill and other intangible assets 4,506 2,604 3,507
Right of use assets 4,530 3,774 4,546
Property, plant and equipment 9,854 2,061 4,508
Contract assets 8 651 1,302 1,302
Deferred tax 1,758 1,046 1,754
---------- ---------- ----------
21,299 10,787 15,617
---------- ---------- ----------
Current assets
Inventories 5,429 4,202 4,010
Trade and other receivables 14,517 15,070 12,169
Contract assets 8 3,266 401 3,504
Cash and cash equivalents 10,506 7,204 14,494
---------- ---------- ----------
33,718 26,877 34,177
---------- ---------- ----------
---------- ---------- ----------
Total assets 55,017 37,664 49,794
---------- ---------- ----------
Current liabilities
Trade and other payables 7,228 8,224 9,119
Provisions 535 493 516
Deferred Income 9 4,751 1,426 851
Lease liabilities 1,164 731 1,112
---------- ---------- ----------
13,678 10,874 11,598
---------- ---------- ----------
Long term liabilities
Deferred income 9 220 116 247
Lease liabilities 2,510 2,214 2,573
---------- ---------- ----------
2,730 2,330 2,820
---------- ---------- ----------
---------- ---------- ----------
Total liabilities 16,408 13,204 14,418
---------- ---------- ----------
---------- ---------- ----------
Net assets 38,609 24,460 35,376
====== ====== ======
Equity
Share capital 10 10,801 10,800 10,800
Share premium 11 11,458 11,352 11,354
Share warrant reserve 12 6,109 2,605 6,109
Translation reserve (598) (537) (676)
Retained earnings 10,839 240 7,789
---------- ---------- ----------
Total equity 38,609 24,460 35,376
====== ====== ======
The total equity is attributable to the equity shareholders of the parent
company Filtronic plc.
Company number 2891064
Condensed Consolidated Interim Statement of Changes in Equity
For the period ended 30 November 2025
Share capital Share premium Share warrant reserve Translation reserve Retained earnings Total equity
£000 £000 £000 £000 £000 £000
Balance at 30 November 2024 10,800 11,352 2,605 (537) 240 24,460
Profit for the period - - - - 7,321 7,321
New shares issued (net of issue costs) - 2 - - - 2
Share warrants - - 3,504 3,504
Currency translation movement arising on consolidation - - - (139) - (139)
Share-based payments - - - - 228 228
---------- ---------- ---------- ---------- ---------- ----------
Balance at 31 May 2025 10,800 11,354 6,109 (676) 7,789 35,376
Profit for the period - - - - 2,642 2,642
New shares issued (net of issue costs) 1 104 - - - 105
Currency translation movement arising on consolidation - - - 78 - 78
Share-based payments - - - - 408 408
---------- ---------- ---------- ---------- ---------- ----------
Balance at 30 November 2025 10,801 11,458 6,109 (598) 10,839 38,609
====== ====== ====== ====== ====== ======
Condensed Consolidated Interim Cash Flow Statement
For the period ended 30 November 2025
6 months 6 months Year
Ended Ended Ended
30 November 30 November 31 May
2025 2024 2025
(Unaudited) (Unaudited) (Audited)
£000 £000 £000
Operating profit 2,616 6,761 13,442
Tax received/(paid) 28 (7) (49)
Share-based payments 408 186 414
Depreciation 807 607 1,315
Amortisation of contract assets 889 901 1,303
Amortisation of intangible assets 339 258 537
Movement in inventories (1,406) (926) (797)
Movement in trade and other receivables (2,307) (8,534) (5,671)
Movement in trade and other payables (1,902) 2,820 3,762
Movement in provisions 19 - 24
Change in deferred income 3,873 8 (437)
---------- ---------- ----------
Net cash generated from operating activities 3,364 2,074 13,843
---------- ---------- ----------
Cash flows from investing activities
Capitalisation of development costs (1,295) (486) (1,496)
Acquisition of intangible assets (43) (103) (277)
Acquisition of plant and equipment (5,574) (1,535) (3,835)
Acquisition of right of use assets (553) - (177)
Interest received 165 101 163
---------- ---------- ----------
Net cash used in investing activities (7,300) (2,023) (5,622)
---------- ---------- ----------
Cash flows from financing activities
Interest paid (168) (127) (268)
Exercise of employee share options 105 141 143
Repayment of principal element of lease liabilities (507) (437) (915)
Receipt of interest-bearing borrowings 495 364 137
---------- ---------- ----------
Net cash generated used in financing activities (75) (59) (903)
---------- ---------- ----------
Movement in cash and cash equivalents (4,011) (8) 7,318
Currency exchange movements 23 (3) (39)
Opening cash and cash equivalents 14,494 7,215 7,215
---------- ---------- ----------
Closing cash and cash equivalents 10,506 7,204 14,494
====== ====== ======
Notes to the Condensed Financial Statements
1 Company information
Filtronic plc is a company registered and domiciled in the United
Kingdom and is listed on the AIM market of the London Stock Exchange. The
Company's registered number is 2891064. The address of the Company's
registered office is Filtronic plc, Plexus 1, NETPark, Thomas Wright Way,
Sedgefield, County Durham, TS21 3FD.
Copies of the Company's Annual Report and interim financial report are
available from the Company's registered office or the Company's website at
www.filtronic.com.
2 Basis of preparation
Whilst the financial information included in this preliminary
statement has been prepared on the basis of the requirements of IFRSs in
issue, this statement does not itself contain sufficient information to comply
with IFRS.
These financial results for the six months ended 30 November 2025
do not comprise statutory accounts within the meaning of Section 434 of the
Companies Act 2006. The interim report should be read in conjunction with the
Annual Report 2025, which includes annual financial statements for the year
ended 31 May 2025. Those accounts have been reported on by the Company's
auditor and delivered to the registrar of companies. The report of the auditor
was (i) unqualified (ii) did not include a reference to any matters to which
the auditor drew attention by way of emphasis without qualifying their report,
and (iii) did not contain a statement under section 498 (2) or (3) of the
Companies Act 2006.
The condensed consolidated financial statements for the six months
ended 30 November 2025 consolidate the financial statements of the Company and
all of its subsidiaries (together referred to as the "Group"). Transactions
between Group companies, which are related parties, have been eliminated upon
consolidation and therefore do not require disclosure.
The condensed consolidated financial statements for the six months ended
30 November 2025 and comparative period have not been audited. The interim
financial report for the six months ended 30 November 2025 was approved by the
Board on 2 February 2026.
3 Going Concern
In accordance with corporate governance requirements the directors have
undertaken a review of forecasts and the Group's cash requirements to consider
whether it is appropriate that the Group continues to adopt the going concern
assumption.
The directors have reviewed the projected cash flow and other relevant
information, including a 'severe but plausible' scenario and have a reasonable
expectation that the Group has adequate resources to continue in operational
existence and therefore it remains appropriate to adopt the going concern
basis in preparing the interim financial report for the six months ended 30
November 2025.
4 Accounting estimates and judgements
The preparation of the financial statements requires the use of
accounting estimates and judgements that affect the application of accounting
policies and reported amounts of assets and liabilities, income and expenses.
The accounting estimates and judgements are continually evaluated and are
based on historical experience and other factors, including expectations of
the future that are believed to be reasonable under the circumstances. Actual
results may differ from the expected results. Revisions to accounting
estimates are recognised in the period in which the estimate is revised if the
revision affects only that period, or in the period of the revision and future
periods if the revision affects both current and future periods. The
accounting estimates and judgements that have a significant effect on the
financial statements are considered in the Filtronic plc Annual Report for the
year ended 31 May 2025 which can be found on the Filtronic website. Unless
stated below there is no material change to those judgements from the Annual
Report in the basis of calculation.
5 Segmental Analysis
Operating Segments
IFRS 8 requires consideration of the identity of the Chief
Operating Decision Maker ('CODM') within the Group. In line with the Group's
internal reporting framework and management structure, the key strategic and
operating decisions are made by the Board, who reviews internal monthly
management reports, budget and forecast information as part of this.
Accordingly, the Board is deemed to be the CODM.
The CODM has identified one operating segment within the Group as
defined under IFRS 8. In turn, this is the only reportable segment of the
Group as the entities in the Group have similar products and services,
production processes and economic characteristics. Therefore, there is no
allocation of operating expenses, profit measures or assets and liabilities to
specific commercial markets.
Accordingly, the CODM assesses the performance of the operating segment on
financial information which is measured and presented in a manner consistent
with those in the financial statements by reference to Group results against
budget.
The Group profit measures are adjusted operating profit and adjusted EBITDA,
both disclosed on the face of the consolidated income statement. No
differences exist between the basis of preparation of the performance measures
used by management and the figures in the Group financial statements.
5 Segmental Analysis (continued)
Revenue by Destination
The revenue presented is based on the geographic location of customers
receiving the product/service from the continuing operations.
6 months 6 months Year
Ended Ended Ended
30 November 30 November 31 May
2025 2024 2025
£000 £000 £000
Revenue
United Kingdom 1,551 1,559 3,946
Europe 984 508 1,205
Americas 22,656 23,446 51,163
Rest of the world 62 82 4
---------- ---------- ----------
25,253 25,595 56,318
====== ====== ======
Revenue from sales
The revenue presented is based on the Group deriving revenue from product
sales and those received from Non-Recurring Engineering ("NRE") at a point in
time when the performance obligation is satisfied.
6 months 6 months Year
Ended Ended Ended
30 November 30 November 31 May
2025 2024 2025
£000 £000
Revenue
Sales of product 24,543 25,565 54,603
NRE - point in time 1,599 931 3,018
Amortisation of contract assets (889) (901) (1,303)
---------- ---------- ----------
25,253 25,595 56,318
====== ====== ======
6 Operating profit
6 months 6 months Year
Ended Ended Ended
30 November 30 November 31 May
2025 2024 2025
£000 £000 £000
Revenue 25,253 25,595 56,318
---------- ---------- ----------
Material cost of goods sold 11,005 9,738 21,855
Wages and salaries 5,440 4,187 10,316
Social security costs 702 469 1,019
Pension costs 448 269 560
Bonus 358 540 1,354
Temporary employees 467 418 900
Share-based payments 404 186 414
---------- ---------- ----------
Employee costs 7,819 6,069 14,563
---------- ---------- ----------
Amortisation of intangible assets 339 258 537
Depreciation of property, plant and equipment and right of use assets 836 607 1,315
---------- ---------- ----------
Depreciation and amortisation 1,175 865 1,852
---------- ---------- ----------
Other operating income (239) (34) (446)
Other expenses 2,877 2,196 5,052
---------- ---------- ----------
Total operating costs 11,632 9,096 21,021
====== ====== ======
Operating profit 2,616 6,761 13,442
====== ====== ======
Development costs of £1,295,000 were capitalised in H1 2026 (HY2025:
£486,000).
Other operating income relates to grants received for plant and machinery and
R&D innovation whilst R&D tax credits under the new merged scheme are
also recognised in operating profit.
7 Basic and diluted earnings per share
6 months 6 months Year
Ended Ended Ended
30 November 30 November 31 May
2025 2024 2025
£000 £000
Profit for the period 2,642 6,728 14,049
====== ====== ======
'000 '000 '000
Basic weighted average number of shares 219,653 218,771 218,854
Dilution effect of share options 12,503 2,663 13,389
----------- ----------- -----------
Diluted weighted average number of shares 232,156 221,434 232,243
======= ======= =======
Basic earnings per share (pence) 1.20p 3.08p 6.42p
Diluted earnings per share (pence) 1.14p 3.04p 6.05p
====== ====== ======
8 Contract assets
Contract assets relate to the share warrants issued to Space X.
6 months 6 months Year
Ended Ended Ended
30 November 30 November 31 May
2025 2024 2025
£000 £000 £000
Opening contract assets 4,806 2,605 2,605
New contract assets generated - - 3,504
Amortised to revenue (889) (901) (1,303)
---------- --------- ---------
3,917 1,703 4,806
====== ====== ======
6 months 6 months Year
Ended Ended Ended
30 November 30 November 31 May
2025 2024 2025
£000 £000 £000
Contract assets due in one to five years 3,266 401 3,504
---------- --------- ---------
Current contract assets 3,266 401 3,504
====== ====== ======
Contract assets due in one to five years 651 1,302 1,302
---------- --------- ---------
Non-current contract assets 651 1,302 1,302
====== ====== ======
9 Deferred income
6 months 6 months Year
Ended Ended Ended
30 November 30 November 31 May
2025 2024 2025
£000 £000 £000
Contract liabilities 4,699 1,484 799
Capital grant 52 29 52
----------- ----------- -----------
Total current deferred income 4,751 1,513 851
----------- ----------- -----------
Contract liabilities - - -
Capital grant 220 116 247
----------- ----------- -----------
Total non-current deferred income 220 116 247
----------- ----------- -----------
Total deferred income 4,971 1,629 1,098
======= ======= =======
Contract liabilities are invoices raised in advance of NRE work completed for
customers that will be recognised as income once the performance obligation of
the contract has been met. The majority of NRE contracts are invoiced with a
proportion of the contract value upfront which is recognised as revenue, over
time, across the life of contract at each milestone based on the percentage of
the overall contract value achieved at that performance obligation.
10 Share Capital
Deferred shares of 10p each Ordinary shares of 0.1p each
Number '000 Number '000 £000
At 30 November 2024 106,877 218,982 10,800
Exercise of employee share options - 20 -
------------ ------------- -------------
At 31 May 2025 106,877 219,002 10,800
Exercise of employee share options - 940 1
------------ ------------ -------------
At 30 November 2025 106,877 219,942 10,801
======== ======== ========
All shares are allotted, called up and fully paid. Holders of the ordinary
shares and entitled to retrieve dividends when declared and are entitled to
one vote per share at meetings of the company.
Holders of the ordinary shares are entitled to receive dividends when declared
and are entitled to one vote per share at meetings of the Company.
11 Share Premium
£000
At 30 November 2024 11,352
Exercise of employee share options 2
-----------
At 31 May 2025 11,354
Exercise of employee share options 104
-----------
At 30 November 2025 11,458
=======
12 Share Warrant Reserve
Tranche 1 and 2
On 24 April 2024, the Group entered into a share warrant arrangement with
SpaceX in conjunction with a
commercial agreement and strategic partnership. This related to the supply of
E-band Solid State Power Amplifiers ("SSPAs") and new technology being
developed for SpaceX for use in their Starlink constellation.
The warrant agreement grants SpaceX the right to acquire up to 21,712,109
shares of the Company (equivalent to 10% of the Company's total share capital
at the inception of the warrant agreement). The exercise price of vested
warrants is 33.0p per share, based on the closing mid-market price at 23 April
2024, which is the date prior to signing the warrant agreement. The directors
have assessed the warrants and made a judgement that the warrants should be
treated as equity instruments as defined by IAS 32. This is because the
warrants have a fixed consideration at 33.0p per share for a fixed number of
units to exercise.
The warrants have been recognised in the financial statements based on the
value at the date of signing of
the agreement. An initial entry has been made in contract assets measured at
fair value, but not subsequently remeasured, with the corresponding entry to
equity.
The initial fair value of the warrants at inception was £2,605,453, based on
a fair value per warrant of £0.11 and the total number of warrants expected
to vest over the 5-year vesting period. The directors have judged all of the
warrants will vest, otherwise SpaceX and Filtronic would not have entered into
the agreement. The warrants represent non-cash consideration payable to a
customer under IFRS 15. Therefore, the contract asset, which effectively
represents a deferred volume rebate, is amortised to revenue based on when the
units are supplied to SpaceX.
The fair value of the warrants was determined using the Black-Scholes Model
valuation method using a number of variables that require judgement including
share price volatility, discount to the bid price, the risk-free rate and the
expected life of the warrants. There are a number of variables that require
judgement within this model including the risk-free rate, share price
volatility, the vesting period and a bid price
discount.
Tranche 3
On 19 March 2025, the Company entered into a second warrant arrangement with
SpaceX expanding the
Original strategic partnership entered into on 23 April 2024 to secure an
increased allocation of business for the Group. The vesting of these warrants
is dependent on certain performance conditions relating to the procurement of
E-band SSPAs to support the Starlink constellation.
12 Share Warrant Reserve (continued)
The warrant agreement grants SpaceX the right to acquire up to 10,949,079 at
92.8p per share. The accounting treatment of the warrants has been judged by
management and has been determined to be treated the same as tranche 1 and 2.
An initial entry has been made in contract assets measured at fair value, but
not subsequently remeasured, with the corresponding entry to equity.
The initial fair value of the warrants at inception was £3,504,000, based on
a fair value per warrant of £0.93 and the total number of warrants expected
to vest over the 5-year vesting period. The directors have judged all of the
warrants will vest, otherwise SpaceX and Filtronic would not have entered into
the agreement. The warrants represent non-cash consideration payable to a
customer under IFRS 15. Therefore, the contract asset, which effectively
represents a deferred volume rebate, is amortised to revenue based on when the
units are supplied to SpaceX.
The fair value of the warrants was determined using the Black-Scholes Model
valuation method using a number of variables that require judgement including
share price volatility, discount to the bid price, the risk-free rate and the
expected life of the warrants. There are a number of variables that require
judgement within this model including the risk-free rate, share price
volatility, the vesting period and a bid price discount.
13 Analysis of net cash
1 June 2025 Cash Flow Other movements 30 Nov 2025
£000 £000 £000 £000
Cash and cash equivalents 14,494 (4,011) 23 10,506
Lease liability - plant and equipment (2,180) 457 (583) (2,306)
--------- --------- --------- ---------
Net cash when including all debt except property leases 12,314 (3,554) (560) 8,200
Lease liability - property lease (1,505) 202 (62) (1,365)
--------- --------- --------- ---------
Net cash 10,809 (3,352) (622) 6,835
====== ====== ====== ======
Cash at bank earns interest at floating rates based on daily bank deposit
rates.
The Group entered into a financing arrangement in November 2024 with Santander
UK plc for a committed £5.0m Revolving Credit Facility ("RCF") for three
years. In December 2025, the Group extended this arrangement for a further
three years and increased the facility to £10.0m.
There were no drawings on the RCF facility at 30 November 2025 (31 May 2025:
undrawn).
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