FILTRONIC, the Yeadon-based manufacturer of microwave electronics products, continues to make waves in its own business after it announced plans to raise £4.5m through a share placing and move to the Alternative Investment Market (AIM).
The company replaced its chief executive Alan Needles in March in the aftermath of £5.3m half-year losses and a review that found revenues would not improve as forecast.
Chief financial officer Rob Smith stepped up and one of his first jobs was to implement cost cutting measures, which included closing its Californian operation and reducing its West Yorkshire workforce, that have reduced operational costs by £2m.
Filtronic, which designs and manufactures products for the wireless telecoms infrastructure market, now plans to raise £4.5m through issuing 90m shares at 5p each – less than one-fifth of the share price in January.
The net proceeds will be used to enable it to ramp up production of its advanced integrated antenna products and E-band Transceiver products and to fund marketing and distribution.
It is also plans to move from the main list to AIM, considering it to be the most appropriate trading platform” given Filtronic’s size and the greater flexibility and, it hopes, liquidity that the junior market offers smaller companies.
Filtronic will reduce the number of non-executive directors, with chairman Howard Ford and director Graham Meek intending to step down at the next AGM. Reg Gott, who has been a non-executive director since 2006, will become chairman of a three-man board that also includes chief executive Mr Smith and non-executive director Michael Roller.
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