Second half sales recovery for communications specialist

Filtronic, which makes products for the aerospace, defence, and communications markets, has reported revenues of £15.6m, down 9% from £17.2m, in its full year results for the 12 months ended 31 May 2021.

It attributes the drop to delays to key programmes in the first half and the impact of COVID-19 on one of its key markets.

However, the listed business says it was encouraged to see 20% revenue growth to £8.5m in the second half of the year over the first half (H1 FY2021: £7.1m) as markets recovered and spending on core communication programmes increased.

The Shipley-based company made a pre-tax profit of £200,000, compared to a loss of £400,000 last year. And Filtronic was able to close the year with £2.9m of cash at bank (2020: £2m).

The firm noted its healthy cash position will be used to drive further organic growth in its served markets, which it adds are showing strong signs of recovery from the pandemic with a stronger order book, improved customer forecasts and increased opportunities.

Over the same period, Filtronic was awarded a contract to develop and supply battlefield radio communications equipment valued at £1.3m through a new channel to market.

And it expanded its direct and indirect sales channels in the USA, Europe and Asia through a mix of agents and distributors to grow its sales reach.

Reg Gott

Reg Gott, chairman, said: “Our healthy cash reserves and continued generation of EBITDA provide a solid platform from which to build the business and make the necessary investments to facilitate further revenue growth.

“The biggest challenge we faced throughout the pandemic was customer engagement and new customer acquisition due to travel restrictions.

“We countered this by expanding our channels to market, across multiple territories, and executed on the marketing plan to raise the brand profile which has provided fresh momentum, stimulating a growing opportunity pipeline and a number of initial contract wins with key target customers.

“Alongside increased order-flow and strengthened customer forecasts there are signs of pent-up demand in our served markets that we are positioning ourselves to capitalise on.”