Contract wins fuel growth at communications tech business

Filtronic, which designs and makes products for the aerospace, defence, telecoms infrastructure and space markets, reports its revenue and profit are expected to be ahead of market expectations for FY2024 and FY2025.

The Leeds-based company has today released its half year results for the six months ended 30 November 2023, in which it achieved revenue of £8.5m (H1 2023: £8.4m) and made a pre-tax loss of £517,000 (H1 2023: £440,000 pre-tax profit).

Jonathan Neale, chairman, said: “We are encouraged by the recent successes we have had in the execution of our strategic plan and targeted growth initiatives.

“The impact of this is expected in H2 FY2024 as we expect revenue to be ahead of full year market expectations and profitability to be materially ahead.

“Consistent with our stated growth objectives we anticipate year-on-year forecast revenue improvements but recognise timing of major project decisions and order placement may span financial years, resulting in a growth trajectory that may sometimes be non-linear despite delivering robust compound growth.”

The business explains its confidence in its overall prospects stems from its contract wins with customers in the space, aerospace and defence markets.

During H1 2024 these wins included a contract award of £3.4m from the market leader in the low earth orbit (LEO) satellite communications equipment market, using Filtronic’s proprietary Cerus 32 product.

Also today, Filtronic confirmed it has achieved two more significant contract wins with a global provider of LEO satellite communications equipment.

The production order contract, valued at £7.8m, with revenue expected to be recognised within calendar year 2024, is for additional demand of Filtronic’s Cerus32 solid state power amplifier (SSPA) module.

These modules will be installed as part of the customer’s earth station antenna network, which provides E-band connectivity to the growing number of E-band enabled LEO satellites.

The second contract with the same customer is a development agreement to accelerate design and prototype delivery of an E-band module, which would form part of the satellite payload and provide downlink connectivity to the ground station.

Subject to successful testing and field trials, this module will represent the first Filtronic product designed for space flight.

Richard Gibbs, chief executive officer, said: “We are very pleased to continue our partnership with the leading global provider of LEO satellite broadband services, and proud of the way we have scaled our operations to supply production volumes of the Cerus32 SSPA module for their ground station network.”