Components shortages fail to dent momentum at communications specialist
Communications technology company, Filtronic, says it expects to report FY2022 revenue of about £17.1m (FY2021: £15.6m) and adjusted EBITDA of at least £2.7m.
The Shipley-based designer and maker of products for the aerospace, defence, telecoms infrastructure and critical communications markets, has published a trading update for the financial year ended 31 May 2022.
The company says its robust trading performance means it can continue to make strategic investments in its future.
Trading in the second half of the financial year was 13% higher than in the first half enabling the Group to deliver revenue broadly in line with market expectation, giving year-on-year revenue growth of 10%.
A strong sales mix and tight control of overhead costs also resulted in adjusted EBITDA being materially ahead of forecasts.
Richard Gibbs, chief executive officer, said: “Throughout the year our primary markets have all continued to show a robust post-Covid recovery and, notwithstanding ongoing disruptions caused by shortages of electronic components, we have delivered another strong set of trading results for the financial year.”
Despite the improved performance demonstrating what Gibbs called “the core strength” of the business he added: “The delivery of key semiconductor components will remain an industry-wide challenge for the foreseeable future, but we believe we have the resources to manage the disruption to our business and we start the new financial year with a strong order book and optimism to deliver further growth next year.”
The update explains that the company has tackled industry shortages by securing inventory early, in addition to having product design under its direct control which keeps the company agile in both sourcing inventory and requalifying alternative sources of supply.
The business says it is pleased to close the year with significant repeat orders for delivery in FY2023, giving a stronger order book and greater visibility than when it entered the year.
The trading update also highlights that demand for telecommunication infrastructure products increased steadily throughout the year, with demand profiles in the aerospace and defence market remaining resilient.
It adds: “Increased business development and marketing activities are also starting to yield positive results, with a number of development contract wins from new customers who are influential players in this market.
“This is supported by an opportunity pipeline that continues to build in terms of both quality and value.”
