Profits rise at Filtronic
FILTRONIC announced a significant increase in profitability this week.
The Shipley-based designer and manufacturer of microwave electronics products for the wireless telecoms infrastructure market, reported in its preliminary results for the year ended May 31 2013, pre-tax profit was at £238,000 compared to a £1.63m loss last year. It also reported an operating profit of £240,000 compared to a loss of £1.65m last year.
Filtronic operates both a wireless a broadband business. The group said it saw strong growth from its wireless business (up 143% compared to 2012) as product base widens, however broadband sales were down 38% as transition to new products is delayed to the next financial year. The company said this was “broadly in line with expectations”.
Chairman Howard Ford, said: “The increasing demand for mobile data supports our strategy of becoming a key equipment provider for the wireless telecommunications market.
“The board is confident that our underlying technology and innovation will deliver long-term growth. As our customer base and product offering broaden, we believe that we are well positioned to take advantage of the huge opportunities that exist for the provision of LTE/4G services.”
The year produced revenue of £40m. This included £31.9m (2012 £13.1m) for the wireless business and £8.1m (2012 £13.0m) for the broadband business.
Filtronic, which employs 175 people, said: “The group continues to invest in wireless engineering, sales and marketing resources in order to support existing programmes and to develop additional products to support customers upgrading their 3G and 4G mobile networks.
“Mobile data traffic doubled during 2012 and continues to grow rapidly. The group has increased profitability and continues to execute its strategy for growth by expanding its addressable market with a broader range of products and a more diversified customer base.”
The Yorkshire business said the board is mindful of its plans and requirements to achieve continued longer term growth and has therefore decided to recommend no annual dividend in respect of the financial year just ended.
