Revenues down at listed electronics manufacturer
Filtronic, a Shipley-based designer and manufacturer of products for the wireless telecoms and communications markets, has reported half year revenues of £7.5m for the six months ended November 30 2019
This compared with revenue of £8.9m for the equivalent six month period in 2018.
Also within its latest half year results, the company recorded adjusted operating profit of £0.3m (H1 2019: £0.4m), and operating loss of £0.5m (H1 2019: operating profit of £0.4m).
As previously reported, Filtronic has successfully disposed of its loss-making Telecoms Antenna Operation for an initial consideration of $5.5m, potentially increasing with a profit share in excess of mutually agreed gross profit targets.
Reg Gott, chairman, said: “The sale of the FTAO business enables us to implement an effective operating structure across a more efficient footprint and provides us with a stronger balance sheet to further develop and grow the business.
“The Board is committed to revenue growth initiatives and intends to strengthen the sales and marketing organisation and extend engineering capacity across a range of disciplines during the course of this calendar year.
“The Group performed in line with management expectations in the first half of FY2020. The lower sales revenue was anticipated and resulted from the closing-out of our legacy filter product programmes.
“However, continued growth in sales of our mmWave products, along with further increases in sales of defence applications, partially mitigated the filter reduction and provided an overall stronger sales mix with improved gross margin.
“Despite the reduction in sales, the improved margin mix enabled us to maintain adjusted EBITDA at £0.6m (2019 H1: £0.6m).
“We entered H2 with a healthy order book of over £10m and a strong demand profile from our key customers. As such, the Board expects to meet EBITDA market expectations for the full year.”
